Durban - The DA is taking the Msunduzi Municipality to task over its decision to sponsor the Royal AM Football Club.
The party has sent a legal letter to the City warning it to cease and desist with the sponsorship deal said to be worth R27 million over a three-year period.
Msunduzi took the decision to sponsor Royal AM, which is owned by businesswoman Shauwn Mkhize and her son Andile Mpisane, after it terminated its agreement with Maritzburg United. United were relegated last season and the municipality said it had sought a deal with another Premier Soccer League team to ensure that top-flight football was played in the provincial capital.
Even the sponsorship deal with the local Maritzburg United had faced opposition as some argued that the City had other pressing priorities rather than sponsoring a football club.
Municipal manager Lulamile Mapholoba said yesterday he had not received the DA’s legal letter.
“I have not received anything from the DA and as such I can’t comment until I receive something in writing.”
The lawyer’s letter warns City officials against participating in the deal, saying they will be held personally liable for costs incurred as a result, stating that the council decision taken on July 19 to ratify the sponsorship deal was irrational.
“In the event that the municipality or any of its officials proceed to authorise or direct the making of any payments to the (Royal AM) sponsorship contract in the face of this letter, we are instructed to seek personal costs orders against those officials,” said the letter.
It argued the City had contravened legislation and process in approving the deal. Among the alleged breaches: The municipality failed to comply with the prescribed supply chain management processes and procedures in entering into the Royal AM sponsorship contract. It failed to conclude a contract with Royal AM in accordance with a fair, equitable, transparent, competitive and cost-effective system.
It failed to make public the draft contract and an information statement summarising the municipality’s obligations in terms of the Royal AM sponsorship contract, at least 60 days before the meeting of the council at which the contract was approved.
DA caucus leader Ross Strachan said, “There can be no justification to fund a billionaire’s football club when basic services cannot be provided.”