Royal AM breached multimillion Rand contract with eThekwini to score with Msunduzi

Issued by Councillor Ross Strachan – DA Msunduzi Caucus Leader
31 Oct 2023 in News

It has now come to light that Royal AM football club dribbled Msunduzi and eThekwini municipalities in order to score a double deal at the expense of taxpayers’ money.

While the history of how the dodgy deal between the financially-strapped Msunduzi Municipality and Royal AM was initiated and concluded has been well-documented, new revelations show the billionaire-owned football club breached an existing contract with eThekwini at the cost of millions.

The metro entered into a 3-year deal with Royal AM, which would see the club promote Durban as a preferred world class destination. This was a deal that was meant to run till the end of the 2023/24 financial period. However, as contained in an EXCO supplementary agenda, in July this year Royal AM revealed that it was sitting with a similar deal which would see it relocate to Msunduzi – a move heavily characterized by gross manipulation and violation of several documented processes.

Royal AM’s move meant that the club had double parked between the two cities – ultimately hedging bets on taxpayers’ money while the ANC was only more than willing to create financial opportunities for their rich billionaire buddies.

During its sitting Exco questioned the matter coming to light 3 months after the offer was made and agreed on termination of contract. It was also agreed that the R3, 5 million which eThekwini would have paid for the 2023/24 financial year of the Royal AM deal be redirected towards other sporting partnership initiatives.

It is without a doubt that the ANC feeding frenzy, which the DA has repeatedly warned about, has begun. The brazenness and blatant disregard are distinct behaviours akin to a kick of a dying ANC horse in KZN.

Now that the greedy ANC and its cadres have revealed their identity and intention, the DA in KZN calls for the people of the province to see this for what it is – and take the opportunity in 2024 to remove this uncaring and desperate government and replace it with one that can make a difference.

The DA will also be updating the courts, through litigation against Msunduzi, on these new revelations by means of supplementary affidavits.

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