ActionSA Outraged by Beleaguered Msunduzi Municipality’s R27 Million Splurge on Shauwn Mkhize’s Royal AM F.C.

ActionSA is outraged to learn that the Msunduzi Municipality has passed a proposal to splurge a whopping R27 million on business mogul, Shauwn Mkhize’s Royal AM Football Club.

An agreement between the two parties will see the football club receiving a total of R9 million a year in sponsorship for the next 3 years starting from in the 2023/24 financial year, and access to the Harry Gwala Stadium as their home venue at no cost.

The absurd decision by the Municipality raises several alarm bells, especially considering that Royal AM Founder, Shauwn Mkhize’s net worth is estimated to be around R350 million, signifying that Royal AM does not need any kind of sponsorship from a troubled municipality like Msunduzi.

One has to also take into consideration that while Royal AM currently operates from their Royal Ranch located in Pietermaritzburg, the club is Durban-based, further amplifying the absurdity of Msunduzi seeking to sponsor a Durban-based football club.

Although opposition parties voted against the motion, the ANC used its majority to bludgeon this ludicrous proposal through council.

To add insult to injury, Msunduzi’s City Manager, Mr Lulamile Mapholoba, disclosed that the Municipality would apply for debt relief in terms of the Municipal Finance Management Act (MFMA) circular no.124, to pay off its R400 million Eskom debt.

One has to recall that Msunduzi Municipality has been under administration for the past 5 years, which was extended by CoGTA in May of this year due to a host of issues, including irregular expenditure and maladministration.

Furthermore, Msunduzi is sitting at a staff capacity of less than 50%.

In true fashion of ANC-led Municipalities, residents of Msunduzi are subjected to poor service delivery, lack of effective waste management, high crime rates and ageing infrastructure due to poor maintenance, age and vandalism.

Some of the main issues faced by the Municipality that we believe these funds should be channelled towards is:

  • Upgrading key infrastructure such as water and electricity.
  • Hire more cleaning staff at the Municipality.
  • The fixture of potholes that have consumed the city and its surrounding areas.
  • Hire Municipal staff as per the Municipality’s organogram so service delivery can be more effectively carried out.

It is apparent now more than ever that the ANC has failed to effectively prioritise matters of importance throughout the province but would rather squander ratepayer rands on frivolous sports teams from neighbouring municipalities.

Msunduzi is a sinking ship and should there be no immediate action taken to keep it afloat, residents of Msunduzi will suffer.