Durban - Opposition parties have slammed the Msunduzi Municipality for going ahead with its sponsorship deal with Royal AM football club, describing the move as irrational given that the City remains under administration.
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 with R27 million over a three-year period.
The adoption was approved at a special meeting of the Executive Committee (Exco) yesterday.
DA Exco member Ross Strachan contended that the money should be ring-fenced and used for service-related efforts.
In terms of the deal, Royal AM will now use Harry Gwala Stadium in Pietermaritzburg as their home ground.
The deal comes after Msunduzi was searching for a new Premier Soccer League (PSL) team to play in the city after Maritzburg United was relegated.
The DA leader said it was baffling that while Msunduzi continued to collapse under administration, the ANC leadership found it appropriate to approve another sponsorship deal this time with PSL club Royal AM, contending that the club’s owner was well off and was also not a local outfit.
“The club, which is owned by ‘billionaire’ Shauwn Mkhize and her son Andile Mpisane, certainly has more than enough financial capacity. For years, the DA has fought against this ludicrous spend on PSL clubs that bear no returns for the municipality that can barely even provide its residents with basic services,” Strachan said.
He added that the party would fight what he labelled as an outrageous and disgraceful, irregular proposal.
Strachan added that they would challenge the proposal through all authorities, including the KZN Co-operative Governance and Traditional Affairs Department as well as National Treasury and all relevant stakeholders, to ensure that this proposal was voided.
IFP Exco member Dennis Ntombela said the sponsorship was insensitive when ratepayers were complaining about high living costs.
Recently the Maritzburg Association of Residents, Ratepayers and Civics (Marrc) indicated that it would mount a legal challenge against the municipality because of high tariffs on water, electricity and rates and the proposed sponsorship plan.
Marrc chairperson Anthony Waldhausen said the organisation was disappointed with the municipality’s decision to sponsor the football team. “It is not sustainable for the city to continue with this type of sponsorship,” said Waldhausen.
Msunduzi city manager Lulamile Mapholoba said the invitation to Royal AM was in line with the municipality’s socio-economic goal of ensuring that the municipality drives development.
He described the relegation of Maritzburg United from top-flight football as a sore point in the city’s 185 history, stating that the deal with Royal AM was aimed at ensuring that top-flight football was played in the capital.
“It is not like we are extravagant. One of the objectives of local government is sound economic development. We would be failing if we allow the 2010 Soccer World Cup legacy to fail,” he said.
He said that major cities in the country were capitalising on big names in football and rugby as a way of stimulating development, adding that Msunduzi was following the trend.
The city manager indicated that one of the reasons that they had called for a special Exco was because the PSL season was set to start soon, and it was important for clubs to confirm where they would play their home matches.
Mkhize said she would give a response once she had received communications from the municipality confirming the approval of the sponsorship.