The Democratic Alliance (DA) in the Msunduzi local municipality has submitted a motion calling for the municipality to review and ultimately terminate the R27 million sponsorship of the troubled Royal AM football club.
Royal AM was placed under curatorship by the South African Revenue Services (SARS) and funds were frozen, leading to the non-payment of salaries in December 2024.
On Wednesday, the Premier Soccer League (PSL) also suspendedall Royal AM’s matches indefinitely because the club couldn’t guarantee that it would honour its fixtures under the current curatorship.
DA councillor in Msunduzi, Reggie Khanyile, said 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.
Khanyile said maintaining a relationship with an entity under such scrutiny damages 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,” Khanyile said.
PARTY WANTS PROVINCIAL COGTA AND TREASURY TO INTERVENE
Khanyile said they have consistently opposed Royal AM’s sponsorship, especially given the dire state of service delivery in Msunduzi.
He said 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 utilised 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 councillor said.
The DA said it would also appeal to the Provincial Treasury and the Department of Cooperative Governance and Traditional Affairs (CoGTA) to intervene in the matter.
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