File Picture: Royal AM's Shauwn Mkhize and Andile Mpisane in a meeting with, right, Msunduzi mayor Mzimkhulu Thebolla.
Image: Independent Newspapers Archives
Judgment has been reserved in the Pietermaritzburg High Court in the case brought by the DA to challenge the Msunduzi Municipality's R27 million sponsorship of the Royal AM Football Club.
The DA, which wants the municipality to terminate the sponsorship, brought the court challenge prior to the ongoing financial issues that are facing Royal AM.
In November last year, a preservation order was granted in favour of the SA Revenue Service (Sars) by the Durban High Court against certain assets under the control of businesswoman Shauwn Mkhize, including the football club. The club was placed under the control of a curator.
Sars said in a statement last month that in December 2024, the curator and the management of the club engaged on the club’s financial position, and the matter was escalated to the National Soccer League (NSL).
As a result of the club’s financial challenges, in January this year, the NSL suspended all Royal AM future fixtures. It has also been recently reported that the club is set to be sold.
In a statement, the DA said it had brought the court challenge as it believed that the sponsorship is illegal and irrational, while the municipality has said the sponsorship has economic benefits.
DA KwaZulu-Natal deputy provincial leader Sithembiso Ngema said the municipality's priorities are misplaced, with the sponsorship of a soccer team taking precedence over essential services.
"Given the current state of the city and Msunduzi's history of being placed under administration, it is concerning that the ANC leadership and the Municipal Manager are prioritising unnecessary expenditures over essential services. Residents of Msunduzi deserve better from the Acting Municipal Manager, and it is crucial to hold him and the ANC leadership accountable for their actions."
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