The KPMG report also raises
questions about the deal brokered in 2007, where EPS entered into agreement with Orlando Pirates and a little-known empowerment company, Inza.

The deal gave Pirates and Inza
51% of EPWOS, leaving EPS with 49%.

Inza is said to have been brought in by Kevin de Klerk as BEE partners before he became Golden Lions president.

The KPMG forensic report makes
serious reservations about the
EPWOS deal. It states the company
didn’t have a VAT number nor
complied with PAYE, income tax
nor did it operate the necessary
company bank account since
inception in 2007.
Instead, it used the EPS bank
account and VAT number to bill
clients, which was illegal according
to the Companies Act and also
exposed its directors to criminal
investigation.
Furthermore, rugby revenues had
been passed through to EPWOS,
leaving EPS/Lions exposed to
undeclared tax and liabilities.
The report also points out that
Pirates had played very few of
their games at Ellis Park, contrary
to the shareholders agreement.
EPWOS had a staff complement of
40, with CEO Paul Appalsamy
earning R1 million a year.
None of the three EPWOS general
managers identified by KPMG
seemed to be properly qualified
for the positions they hold. The
general manager of operations
was a former paramedic and fire instructor, it said.

EPWOS has never declared any
profit or paid dividends.

However to sign Taute and Jantjes would be perfect for the Stormers. Also maybe they should try to bring back Kockott or sign Pienaar

Viva “Transformation,” viva!!!

Oh frabjous day…

If the deal had gone through all would be well – minus all the pricks that ruined the Lions.

Anyway, the Kings found out the hard way that you don’t dump a team out of the competition and then expect them to turn around and help you out with players. And now WP are learning this too. Cause and effect.

Jeepers I’d think 2, 3 or 136 times before I believed anything that walrus said. Maybe there weren’t enough sausage rolls at the meeting and he swore bitter revenge