Chippa United are facing a race against time to avoid a FIFA-imposed transfer ban after being ordered to settle a long-standing debt with former coach Luc Eymael. This latest blow comes as chairman Chippa Mpengesi moves to ‘set the record straight’ regarding separate reports of a R53m asset seizure threat by SARS against his business empire.
In a letter issued on Friday, 20 February, Chippa was notified of a ruling requiring them to settle a debt with Eymael. With the clock already ticking, the Chilli Boys have approximately 41 days to comply from the 45 days given to them or face a transfer ban.
The directive mandates a payment of R250,000 plus 5% interest. Failure to pay will result in the club being barred from registering new players for up to three consecutive transfer windows, or until the debt is cleared.
Should the matter remain unresolved after three transfer windows, the case will be escalated to the FIFA Disciplinary Committee, in accordance with the formal notice sent to Chippa.
Eymael was appointed head coach of the Gqeberha-based outfit in August 2025, succeeding the sacked Sinethemba Badela. However, his tenure with the Chilli Boys was short-lived; he was dismissed in October 2025, with the club reportedly failed to honour a R250,000 settlement agreement.
CHIPPA HOLDINGS OFFICIAL STATEMENT ON SARS REPORTS
Meanwhile, the club is facing a looming FIFA transfer ban. On Monday, February 23, Chippa Holdings [PTY] LTD chairman Siviwe Mpengesi issued an official response to reports by City Press regarding alleged SARS asset seizures and unpaid salaries at the Africa School of Excellence.
Mpengesi assert that January salaries were paid on the 30th. He went on to state that “confidential documentary proof” was provided to City Press prior to publication.
Regarding claims of unpaid December salaries, the statement clarifies this was the responsibility of the previous operator, Transnet.
“It is important to place on record that December fell entirely under Transnet’s operational responsibility. Any remuneration obligations for that period were therefore not the responsibility of the current operator,” reads the statement.
REBUTTAL OF SARS ASSET SEIZURE CLAIMS
The PSL side boss, Mpengesi, characterise the reporting on tax enforcement as a “misrepresentation and conflation.” While acknowledging ongoing engagements with SARS [which he describes as standard for high-turnover organisations], he denies any imminent asset seizures.
He notes that the specific entity engaging with SARS has no operational. Also, financial link to the Africa School of Excellence.
“The article’s suggestion of imminent asset seizure is misleading and does not reflect the reality of the engagement process. We are very far from any such scenario,” the statement continued.
“Chippa-related entities have a longstanding and ongoing engagement with SARS. Where tax matters arise, they are addressed through lawful arrangements and professional channels.”
CRITICISM OF JOURNALISTIC CONDUCT
The statement accuses City Press of ignoring clarifying evidence and documented proof, leading to “unnecessary reputational harm.” Mpengesi claims he invited journalists to visit the school to see operations first-hand, but the invitations were ignored.
“It is a basic principle of responsible journalism that where allegations are disproven through verifiable evidence, publication should reflect that reality. Despite this clarification, an article was subsequently published repeating the same false and malicious allegations,” Mpengesi added.
LEGAL AND REGULATORY ACTION
Chippa Holdings intends to escalate the matter due to what they describe as “editorial lapses.”
“This matter will be formally referred to the Press Council and the Press Ombudsman for review. This is in the interest of journalistic ethics, editorial accountability, and public integrity,” reads the press release.
The statement concludes with an assurance to stakeholders, partners, and supporters. The club noted that Chippa remains focused on finishing the season professionally and that the Africa School of Excellence will continue its operations unaffected by the “speculative reporting.”
RELATED STORY: Morgan Mammila: “It’s not Chippa Mpengesi who fired me”