Msunduzi Municipality's decision to appeal court ruling on Royal AM sponsorship deal sparks outrage
The decision by the Msunduzi Municipality to appeal a court judgment that had struck down its sponsorship deal with Royal AM football club has drawn widespread condemnation from opposition parties and ratepayers.
In August, the Pietermaritzburg High Court had found the agreement to be unlawful, invalid and had reviewed and set it aside. It further ordered that all payments made to the football club under the sponsorship deal must be repaid with interest.
The DA’s Ross Strachan stated that the party in Msunduzi has noted with dismay the municipality’s filing of an application for leave to appeal the recent Royal AM court judgment. Royal AM, which was expelled from the Premier Soccer League earlier this year, was cited as a respondent in the case but did not participate in the matter.
Strachan explained that the filing of an application for leave to appeal meant that the original court order was automatically suspended, further delaying justice and accountability.
“Last month, the KwaZulu-Natal High Court found the awarding of a R27 million sponsorship deal by the ANC-run Msunduzi Municipality to Royal AM to be unlawful. The DA in Msunduzi believes that there are few prospects of success in overturning the judgment on appeal.”
He added that the party believed the move was an attempt to delay the DA’s motion of no confidence in the ANC mayor, as the coalition of the ANC-PA-EFF-IFP is uncertain of its support.
“This is nothing short of a disgrace and yet another example of how this ANC-led coalition municipality wastes taxpayers’ money on endless legal battles instead of focusing on service delivery. Residents of Msunduzi are being denied proper governance while scarce public resources are poured into defending the indefensible,” he said.
He added that the action goes against Co-operative Governance MEC Thulasizwe Buthelezi’s recent interventions in Msunduzi.
Anthony Waldhausen of the Msunduzi Association of Ratepayers Residents and Civics (MARRC) stated that the association was against the matter being appealed.
“The Msunduzi Municipality is wasting ratepayers’ money to appeal the decision, and they know they will likely lose the appeal. Whoever the appellants to the appeal are needs to be made personally liable for the court costs and not the ratepayers. The municipality is incurring significant legal fees from external lawyers, which is a wasteful expenditure.”
Municipal spokesperson Ntobeko Mkhize confirmed that an application for leave to appeal has been filed in this matter.
“Given that the case is currently sub judice, we are not in a position to make further public comment. At the appropriate time, when it is permissible to do so, members of the public will be duly updated.”