The Pietermaritzburg High Court has ruled that the R27-million sponsorship deal between Royal AM Football Club and the Msunduzi Municipality was unlawful, ordering the club to repay the full amount to the city.
The agreement, inked in 2021, was meant to provide R9 million per year over three years—but the total was controversially paid upfront, drawing sharp criticism from opposition parties and civil society.
The court ruling comes after a legal challenge spearheaded by the Democratic Alliance (DA), which argued that the sponsorship violated municipal finance laws, lacked transparency, and bypassed proper procurement procedures. The court agreed, declaring the deal a misuse of public funds.
“This is a victory for accountability and the rule of law,” said DA councillor Rooksana Ahmed, who led the challenge. The outcome has intensified calls for stricter oversight of municipal funding, particularly sponsorships and high-value contracts.
Royal AM, owned by businesswoman Shauwn “MaMkhize” Mkhize, has been under increasing financial and legal pressure. The club was expelled from the Premier Soccer League (PSL) after MaMkhize was hit with a massive tax bill. The South African Revenue Service (SARS) placed the club under curatorship to recover R40 million in unpaid taxes.
MaMkhize has not yet issued a public response to the court ruling or indicated whether Royal AM will appeal the decision.
The case marks a significant precedent in holding municipalities accountable for irregular spending, especially when public funds are channeled into questionable sponsorships amid widespread service delivery failures.
