The Democratic Alliance (DA) in the Msunduzi local municipality is calling for the immediate termination of the R27 million sponsorship granted to Royal AM football club, citing the club’s financial and legal troubles as reasons for the motion.
Royal AM, owned by business mogul Shauwn Mkhize, has recently come under intense scrutiny after being placed under curatorship by the South African Revenue Service (SARS). This led to frozen funds and non-payment of player salaries in December 2024. Compounding the crisis, the Premier Soccer League (PSL) indefinitely suspended all Royal AM matches on Wednesday, as the club could no longer guarantee its ability to honour fixtures under its current financial woes.
DA councillor Reggie Khanyile has been vocal about the municipality’s continued sponsorship of the club despite its ongoing legal battles, including allegations of tax evasion. “Non-compliance with tax laws and deliberate tax evasion are criminal offences that should not be taken lightly by any municipal authority,” Khanyile stated.
Khanyile further argued that supporting a business facing sequestration, FIFA sanctions, and insolvency proceedings harms the municipality’s reputation. “Royal AM is already under curatorship, unable to pay staff salaries, and embroiled in controversy. Continuing this sponsorship brings nothing but disrepute to the Msunduzi municipality,” he added.
DA Proposes Redirecting Funds to Support Youth and Improve Services
The DA contends that the R27 million sponsorship could be better utilised to address pressing issues in Msunduzi, including crumbling infrastructure and inadequate service delivery.
Khanyile emphasized that many residents lack consistent access to basic services such as water and electricity due to the municipality’s deteriorating infrastructure. He also highlighted the need for investment in sports facilities and youth programs to provide young people with opportunities and deter them from crime and drug abuse.
“Young people in the municipality are left vulnerable due to a lack of support, yet Msunduzi is funding an entity that contributes nothing to the city apart from controversy and embarrassment,” Khanyile said.
Call for Provincial Intervention
The DA plans to escalate the matter to the Provincial Treasury and the Department of Cooperative Governance and Traditional Affairs (CoGTA), urging them to intervene and redirect the funds toward initiatives that benefit the residents of Msunduzi.
This motion comes as Royal AM faces mounting criticism and uncertainty over its future, leaving many questioning whether public funds should support an entity engulfed in financial and legal turmoil.