By Lehlohonolo Lehana.
The Msunduzi Municipality has resolved to terminate the controversial Royal AM Football Club R27m sponsorship contract.
The deal came under scrutiny after the Democratic Alliance (DA) took both the municipality and the club to court in October 2023 for refusing to back down from the contentious agreement.
African National Congress (ANC) Chief Whip in Msunduzi, Sandile Dlamini, said the matter was carried under a confidential agenda item at Wednesday’s full council meeting.
Dlamini said there was nothing untoward about the cancellation of the sponsorship. He further warned against bringing confidential items to the public before they are finalised.
“This matter has been of public interest, but the court proceedings are making it difficult to discuss it in public. It is ill-discipline for councillors to disregard council rules.
“As for the sponsor, one of the fundamental terms of the contract was that Royal AM will be sponsored only if it remains in the PSL, so now that it is no longer there, it is just to terminate the contract,” said Dlamini.
The Premier Soccer League (PSL) has expelled Royal AM from the league after the club was placed under auction to recoup some of the R40 million that owner Shauwn Mkhize owed to SARS.
The DA welcomed the decision saying it will prevent any further public funds from being wasted on this irregular arrangement.
“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 party in a statement.