Durban - ActionSA said the party is outraged that Msunduzi Municipality will be sponsoring the Royal AM Football Club for R27 million over a three-year period.
The adoption was approved at a special meeting of the Executive Committee (Exco) last week.
ActionSA KwaZulu-Natal chairperson Zwakele Mncwango said the agreement between the club’s owner, business mogul Shauwn Mkhize, and the municipality will see the football club receiving a total of R9 million a year in sponsorship for the next three years, starting from the the 2023/24 financial year.
The deal would also give the club access to the Harry Gwala Stadium as their home venue at no cost, he said.
“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,” said Mncwango.
Mncwango added that while Royal AM currently operates from their Royal Ranch located in Pietermaritzburg, the club is Durban-based.
“This further amplifies the absurdity of Msunduzi seeking to sponsor a Durban-based football club,” he said.
The deal was approved despite the fact that opposition parties voted against the motion as the ANC used its majority vote, he said.
“One has to recall that Msunduzi Municipality has been under administration for the past 5 years, 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%.
“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,” he said.
Mncwango said ActionSA believes that the funds should rather be used for upgrading key infrastructure such as water and electricity; hiring more cleaning staff at the municipality; fixing potholes; and to hire municipal staff as per the municipality’s organogram for service delivery to be more effectively carried out.
He said the ANC would rather squander ratepayer rands on frivolous sports teams from neighbouring municipalities.
“Msunduzi is a sinking ship and should no immediate action be taken to keep it afloat, residents of Msunduzi will suffer,” said Mncwango.
The Mercury reported last week that according to the DA and IFP, it would make more sense to enter into a joint venture than to have the KwaZulu-Natal capital solely sponsoring the club.
In the report, DA Exco member Ross Strachan said that the money should be ring-fenced and used for service-related efforts, while IFP Exco member Dennis Ntombela said the sponsorship was insensitive when ratepayers were complaining about high living costs.
Msunduzi city manager Lulamile Mapholoba said in the report that the invitation to Royal AM was in line with the municipality’s socio-economic goal of ensuring that the municipality drives development.