SA Rugby have confirmed they will take administrative control of the Western Province RFU, which is the management body of the United Rugby Championship's Stormers.
The national governing body say they invoked their constitutional power with "reluctance", and will now oversee the administrative affairs of both the DHL Stormers, as well as Western Province's Currie Cup side.
Western Province have endured financial difficulties in recent years, with threats to remove them from the URC a week before the tournament started.
However, SA Rugby have now stepped in to assume control of the Cape Town side, who remain the only South African team yet to pick up a win in the URC.
President of SA Rugby Mark Alexander says they have been left with no choice but to step in and remove control from the WPRFU.
"We had engaged with the WPRFU over a number of months on the challenges the organisation faced and tried to assist them in finding solutions," said Mr Alexander.
"We attempted to partner in a joint oversight committee but were frustrated in our attempts to receive accurate information and engage constructively.
"However, the Union has regressed in its attempts to extricate itself from those challenges and we could no longer stand by.
"This is very much the last resort, but it had become apparent that the Union's leadership was incapable of putting in place the actions to regularize its position.
"Several of the Union’s stakeholders have contacted our offices to express their dismay and we are aware of the public alarm.
"Clause 29 of the constitution of the South African Rugby Union charges that all unions have to 'conduct their business affairs in such a way that, at all times, they are in a sound financial position, comply with the laws of the Republic and adhere to the requirements of good governance’.
"It is Exco’s view that WPRFU has failed that test and we could no longer distribute SA Rugby income in that knowledge. On that basis we have taken this decision with a heavy heart."
SA Rugby say their assumption of administrative control is purely to stabilise the union's affairs, and they will not be having any direct influence on on-field matters for the Stormers.
The financial troubles at Western Province have been known for some time, with the Stormers losing a number of high-profile Test stars in the last 12 months, with Siya Kolisi and Bongi Mbonambi moving to the Sharks, while Pieter-Steph du Toit has departed to Japan.
