The sponsorship worth millions of rands awarded to Royal AM by the Msunduzi local municipality has pitied the ANC and the DA against each other.
The municipality, which is based in Pietermaritzburg, is governed by the ANC while the DA serves on the opposition benches.
Both the political parties are co-governing KwaZulu-Natal under the pact of government of provincial unity (GPU), including the IFP and the National Freedom Party.
The DA has been at the forefront of opposing a R27-million sponsorship deal awarded to the football outfit that is owned by flamboyant businesswoman Shawn Mkhize.
In 2023, the ANC majority in the council pushed through the deal despite the DA raising its objections.
The DA argued, among other points, that the municipality was not in the business of financially backing a well-established sports club.
The party was aggrieved by the internal process and went to court in an attempt to have the agreement nullified and set aside.
The matter was heard last week Friday by the Pietermaritzburg High Court.
Court judgment reserved
The court, however, reserved its judgment, saying it will notify all parties about the court outcome in due course.
“This sponsorship is illegal and irrational; we are hoping that the judgment will put the interests of residents first and stop the ANC from continuously exploiting the city for the benefit of those who are politically connected.
“Their argument that the sponsorship has economic benefit is purely based on opinion, not on fact or any research findings,” explained Sithembiso Ngema, the DA’s deputy leader in KwaZulu-Natal.
Ngema further stated that the Msunduzi municipality’s priorities are misplaced, with sponsorship of a football team owned by a wealthy businesswoman taking precedence over essential services.
“There is no political will from the ANC to stop this disgraceful sponsorship, with the acting municipal manager having done little to nothing to ensure that it is discussed and ultimately terminated.
“The Municipal Finance Management Act [56/2003] clearly outlines the duties and responsibilities of the municipal manager, including strategic management of service delivery, financial management, and accountability.
“The act also emphasises the importance of ensuring that services are delivered in a sustainable and equitable manner,” he said.
Unnecessary expenditure
The blue party also said the awarding of the contract was worrisome given the municipality’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, he said.
“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.
“It is unacceptable that the municipality has failed to deliver basic services, such as maintaining clean and safe environments, repairing damaged roads, and supporting local businesses.
“The Democratic Alliance in KwaZulu-Natal will not stop the fight until this sponsorship is terminated and monies are spent on services for residents of Msunduzi.”
The funds were due to be disbursed in instalments of R9-million per football season.
SARS takes ownership of Royal AM
Meanwhile, Royal AM have troubles of their own off the pitch.
In February, the SA Revenue Services (SARS) took over the running of the outfit due to Mkhize’s tax debt of about R40-million owed to the taxman. The fracas has led to several matches of the football club not being played.
The club is also reportedly battling to pay players’ salaries.
In the latest round of the episode, SARS is believed to be considering selling the club in order to recoup the funds owed.
