In a major ruling, the High Court has ordered Royal AM Football Club to repay the R27 million sponsorship it received from the Msunduzi Municipality, declaring the deal unlawful and setting a strong precedent for the handling of public funds in South Africa.
The court found that the multimillion-rand sponsorship—awarded during a time when the municipality was facing serious financial strain—was irregular and not aligned with legal processes governing municipal spending. The judgment follows public outcry and months of legal scrutiny surrounding the use of taxpayer money for private sponsorships.
Royal AM, owned by businesswoman and reality TV personality Shauwn “MaMkhize” Mkhize, now faces the legal obligation to return the funds in full. The court’s decision has been welcomed by civic organisations and ratepayers who long questioned the rationale behind the high-profile deal, given Msunduzi’s service delivery and infrastructure challenges.
This landmark ruling could have broader implications for how municipalities engage with private entities, particularly in the realm of sports sponsorships, and sends a clear message about financial accountability in public office. Further legal developments are expected as parties respond to the judgment.
