Msunduzi ratepayers demand investigation into Royal AM sponsorship deal

IOL News

3 days ago

The sponsorship of Royal AM, which started in July 2023 at a cost of R9 million per annum for the municipality, was terminated by the Msunduzi council recently.
Image: Ayanda Ndamane / Independent Newspapers
Ratepayers in Msunduzi are urging the KwaZulu-Natal Department of Co-operative Governance and Traditional Affairs (Cogta) to expand its investigation into the municipality's decision to sponsor the Royal AM Football Club.
The Msunduzi Association of Ratepayers Residents and Civics (MARRC) said the decision taken by the Msunduzi Municipality to sponsor Royal AM was irresponsible and a waste of taxpayer resources. Cogta recently announced a section 106 investigation into the municipality.
The multi-million rand sponsorship, which started in July 2023 at a cost of R9 million per annum for the municipality, was terminated by the Msunduzi council recently. Royal AM was expelled from the Premier Soccer League (PSL) in April after the club was placed under the control of a curator appointed by Sars.
In a statement, the Msunduzi Full Council announced the termination of the Royal AM sponsorship in accordance with a contractual clause as the club was no longer in the PSL. The municipality added that this decision had no connection to any ongoing court processes and was based on the terms of the partnership agreement entered into between the municipality and the football club.
Anthony Waldhausen stated that MARRC protested against both the Maritzburg United and Royal AM sponsorship deals from the outset, arguing that the funds could have been better allocated towards the maintenance and repair of the water and electricity infrastructure.
'We have a dysfunctional and financially unstable municipality, and the council's decisions in the past leave a lot to be desired and are irresponsible,' he said. 'We look forward to the MEC of Cogta's forensic investigation into Msunduzi Municipality, which will unearth more corruption, and we call on the MEC of Cogta to include investigating both Maritzburg United and Royal AM sponsorship deals as well.'
ACDP councillor Rienus Niemand said his party welcomes the cancellation, stating that the entire saga has embarrassed the mayor, the council, and indeed the whole city. He said entering into a multi-million rand sponsorship arrangement for a city that is on the verge of bankruptcy was a disgrace and a reflection of poor management and governance.
"The negative publicity surrounding this issue has reached the secretary-general of the ANC, who publicly stated that the mayor and his ANC minority have brought the party into disrepute. However, the process is not over, as it is crucial to ensure that those responsible are held accountable and that the lost funds are returned to the city and its ratepayers.
The ACDP will be at the forefront in ensuring just that. The time is right to prosecute and rid Msunduzi of corrupt and inept politicians and officials alike. It is hard to imagine a saga that has caused more damage to the reputation of the city of choice. The ACDP will ensure that heads will roll,' he said.
THE MERCURY