The sale of Royal AM’s PSL club status is currently on hold as the deal failed to materialise. Here’s a breakdown of why the transaction didn’t go through.
Thwihli Thwahla were placed under the curatorship of Jaco Venter by the South African Revenue Service [SARS] after being seized from owner Shauwn Mkhize due to an alleged R40 million tax debt.
Subsequently, the PSL suspended all of Royal AM’s fixtures as the club could not guarantee their ability to meet their obligations for the remainder of the current season. Further compounding their issues, Royal AM were also withdrawn from the 2025 Nedbank Cup.
This decision, made by the PSL Executive Committee (EXCO), was reportedly reached in agreement with both the club and the curator, with time constraints cited as the primary reason for their withdrawal from the tournament.
SARS then put Royal AM for sale in March with several high-profile bidders vying for the ownership of the club.
WHY ROYAL AM SALE DEAL WAS DECLINED BY PSL
According to a SARS curator media statement, the successful purchaser Global Investments was notified on 19 March of their successful bid to acquire the status of the club.
The winning bidder was required to pay within three days of notification, but the deal collapsed due to non-payment.
“In terms of clause 12 of the invitation to submit offers referred to above, the Successful Offeror was required to within a period 3 (three) days (“Payment Period”) of being advised by the curator bonis in writing that he, she or it is the Successful Offeror, pay the accepted offer amount [minus the deposit amount] [“Purchase Price”] into the trust account of VZLR Inc.,” said the SARS curator via a statement.
“Notwithstanding numerous demands to the representative(s) of Global Investments to comply with its obligations in accordance with inter alia the sale agreement, as at 10h00 today, it / they had failed to effect payment of the Purchase Price into the trust account of the curator bonis’ legal representatives.
“As a result of aforesaid failure to make payment as required, the curator bonis was left with no other option but to cancel the agreement with Global Investments, which election was communicated at approximately 10h30 today to the Offeror’s representatives.
”The curator bonis notified the members of the Executive Committee of the National Soccer League shortly thereafter, as they were
scheduled to meet to deliberate the matter at 11h00 today.
WHAT IS GLOBAL INVESTMENTS’ LINK WITH ROY MOODLEY
Global Investments, the successful bidder, has a director named Mageshpren Moodley, who is the son of Chockalingam Roy Moodley
Moodley, a close associate of former South Africa president Jacob Zuma, is alleged to have benefited from government contracts through political connections.
His name has surfaced in multiple State Capture investigations.
RELATED STORY: Royal AM booted out of Nedbank Cup
