Royal AM Football Club will be required to repay all funds received from a controversial R27 million sponsorship deal with the Msunduzi Municipality, following a High Court ruling declaring the agreement unlawful.
The judgment comes just weeks after the municipality moved to cancel the three-year sponsorship agreement, which had sparked public outrage.
The football club is owned by Durban businesswoman Shauwn Mkhize and her son, Andile Mpisane.
Residents Welcome Ruling
Local ratepayers and civil society groups, who have long opposed the deal, have welcomed the court’s decision as a victory for transparency and accountability.
“We’ve been against the sponsorship from the start,” said Anthony Waldhausen, CEO of the Msunduzi Association of Residents, Ratepayers and Civics (MARRC).
“Now, we’re looking forward to the municipality taking steps to recover the money owed. That funding should be redirected to urgently needed service delivery.”
Background
The sponsorship was originally pitched as a strategic investment in sports development and brand exposure.
However, critics slammed it as irresponsible spending in a municipality grappling with service delivery challenges and financial strain.
Calls have also intensified to broaden the investigation into the origins and motivations behind the deal, with demands for greater oversight of municipal finances.
The court’s ruling now compels the Msunduzi Municipality to initiate processes to recover the full R27 million from Royal AM.
It remains to be seen whether the club will comply voluntarily or if further legal action will be required.
Does Shauwn Mkhize even have close to R27 million left after SARS caught up with her?
Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1
Subscribe to The South African website’s newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.