MaMkhize loses R27 million Msunduzi Municipality deal

MaMkhize loses R27 million Msunduzi Municipality deal

THE Msunduzi Municipality finally cancels the R27 million sponsorship to Shauwn “Mam’Mkhize” Mkhize’s club Royal AM FC.

However, the DA said the war is not over.

Since the sponsorship was awarded to Royal AM in 2023, the DA has been challenging it, to a point of taking the matter to court.

Now, the municipality in Pietermaritzburg, KZN midlands, has officially terminated the sponsorship for the then-Pietermaritzburg-based team while it was plying its trade in the Premier Soccer League (PSL).

On Wednesday, 3 June, the full council resolved to terminate the contract because the team was no longer participating in the PSL.

Msunduzi acting municipal manager Nelisiwe Ngcobo said the decision follows the recent removal of the club from the league.

“The sponsorship agreement explicitly states that the club must be participating in the PSL as a condition of the contract. Given that Royal AM no longer meet this requirement, the municipality was obligated to review its contractual position.

“After thorough deliberations, which took place during a recent full council meeting where the matter was tabled as a confidential item, council resolved to terminate the agreement with immediate effect,” she said.

“The municipality further clarifies that this decision has no connection to any ongoing court processes. It is strictly based on and in accordance with the terms of the partnership agreement entered into between the municipalities and the football club.”

Royal AM, owned by Mam’Mkhize and his son Andile Mpisane, was dismissed by the PSL after it failed to play its matches amid Sars curatorship.

Mam’Mkhize is in trouble with the taxman, and her assets, including her soccer team, were attached amid because of the R40 million skoloto.

Her problems date back to 2024 after the KZN Local Division of the High Court granted a preservation order and a search-and-seizure warrant in the case involving the commissioner of Sara versus Mam’Mkhize and others.

The curator failed to sell the club, and her assets, including 13 luxury cars and a tour bus, are to be auctioned.

The DA tried to raise votes of no confidence against the sponsorship a few months ago.

In February, the party rushed to the Pietermaritzburg High Court, and judgment was reserved.

DA councillor Reggie Khanyile told Daily Sun they’re happy that the sponsorship is finally off, but the war isn’t over yet.

“This deal was not right from the beginning, and the municipality benefitted nothing from this deal and the deal process was unlawful. They can try to fool us by saying they took the decision because the club is no longer participating in the PSL.

“That’s not true because Royal AM still exists and is not sold. Earlier on, we tried to tell the municipality to stay away from the club after it was placed under the curatorship, but others refused,” he said.

Khanyile said they were waiting for the court judgment.

“If the court rules in our favour, we want all the councilors who voted in favour of the sponsorship to be held accountable” he added.