The Democratic Alliance in Msunduzi local municipality has submitted a motion calling for the municipality to review and ultimately terminate R27 million sponsorship for the Royal AM football club (view motion here).
The municipality cannot continue supporting a business facing serious legal proceedings, 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.
Maintaining a relationship with an entity under such scrutiny is damaging to the municipality’s reputation. Royal AM is already under curatorship, facing sequestration processes, and unable to pay staff salaries. The club has breached contracts with former players, is facing sanctions from FIFA, and risks being declared insolvent by the world football governing body. Continuing this sponsorship brings nothing but disrepute to the Msunduzi Municipality.
The DA has consistently opposed the sponsorship of Royal AM, especially given the dire state of service delivery in Msunduzi. Collapsing infrastructure has left residents without consistent access to water and electricity. The DA strongly believes that the R27 million allocated to Royal AM could be better utilized to address these critical issues and support the youth of Msunduzi through the maintenance of sports facilities and the funding of sports and youth programs. Young people in the municipality are left vulnerable to crime and drug abuse due to a lack of support, yet Msunduzi is funding an entity that contributes nothing to the city apart from controversy and embarrassment.
The DA will also appeal to the Provincial Treasury and the Department of Cooperative Governance and Traditional Affairs (CoGTA) to intervene in this matter.
Msunduzi deserves better. The municipality must prioritize its residents and redirect funds to address urgent service delivery and youth development needs.