Cape Town — The Democratic Alliance (DA) in Msunduzi has called for the municipality to review and terminate the R27 million sponsorship for the Royal AM Football Club.
In a statement, the DA said the municipality submitted a notion to terminate the sponsorship as it cannot continue to support 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.
“Maintaining a relationship with an entity under such scrutiny is damaging to the municipality’s reputation. Royal AM is already under curatorship, facing sequestration processes, and unable to pay staff salaries,” DA spokesperson Reggie Khanyile said.
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 added.
The DA is pushing to have Msunduzi Municipality cancel the R27 million contract they have with Royal AM. It’s now looking unlikely that the municipality will recoup the projected money over the contractual term, as Royal AM is not hosting games until further notice.
— Andee Mahamba (@AndeeM_) January 23, 2025
The DA has consistently opposed the sponsorship of Royal AM, considering the poor state of service delivery in Msunduzi. The municipality left residents without access to water and electricity and the party believed that the R27 million sponsorship could be utilised better to address critical issues and support the youth.
“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,” Khanyile said.
The DA appealed to the Department of Cooperative Governance and Traditional Affairs (CoGTA) to intervene in this matter.
“Msunduzi deserves better. The municipality must prioritize its residents and redirect funds to address urgent service delivery and youth development needs,” Khanyile concluded.
Royal AM is under attack, I didn’t know that an entire league can have personal issues going as far as this pic.twitter.com/zej0sSMRFP
— Raymond Monty Maboea (@RayMaboya) January 22, 2025
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Compiled by Matthew Petersen
