IT is unclear what would happen to the R27 million of Pietermaritzburg ratepayers money given as a sponsorship to embattled football club Royal AM, now that the South African Revenue Services has put the club up for auction.

The Msunduzi Municipality has claimed that their multi million rand sponsorship to Royal AM, had been approved in alignment with the municipality’s broader goals of community development, youth empowerment, and local economic growth.

Last week the Pietermaritzburg High Court reserved judgment in the matter brought by the Democratic Alliance (DA) against the municipality over the sponsorship.

Ntobeko Mkhize, Msunduzi municipality spokesperson, said because judgement in the matter of the sponsorship was still pending in court, they were unable to discuss it further at this time.

"Both the municipality’s legal and financial teams were involved in ensuring that the sponsorship was executed in compliance with all relevant municipal regulations and governance standards.

"Furthermore, the municipality is committed to keeping the public informed of any developments as the matter progresses. We understand the importance of transparency and will continue to update the community as soon as any developments arise," said Mkhize.

Councillor Sithembiso Ngema, DA's KZN deputy provincial leader, said the sponsorship was illegal and irrational.

He said they were hoping that the judgment would put the interests of residents first and stop the ANC from continuously exploiting the city for the benefit of those who are politically connected.

"Their argument that the sponsorship has economic benefit is purely based on opinion not on fact or any research findings.

"The Msunduzi municipality's priorities are misplaced, with sponsorship of a soccer team owned by a wealthy businesswoman taking precedence over essential services. Given the current state of the city and Msunduzi history of being placed under administration, it is concerning that the ANC leadership and the Municipal Manager are prioritising unnecessary expenditures over essential services," said Ngema.

The Premier Soccer League (PSL) team Royal AM was this week put up for sale with interested parties having until Friday, March 14 to put in their bid offer.

The provisional announcement of the successful offer will be done on Monday, March 17.

A refundable deposit of R1-million must be paid into the trust account of the curator bonis’ legal representatives, VZLR Inc., to validate the offer for submission.

The South African Revenue Service's (Sars) curator Jaco Venter put up a public notice announcing the club will be auctioned off in a bid to recoup a reported R40m tax debt owed by businesswoman and Royal AM owner Shauwn “MaMkhize” Mkhize.

"Pursuant to the much-publicised financial difficulties experienced by Royal AM Football Club (Pty) Ltd (under curatorship of Mr Venter N.O.), the Directorship of the Royal AM Football Club (Pty) Ltd, the management thereof and the Curator Bonis have agreed to market and offer for sale the rights, title and interests of Royal AM Football Club (Pty) Ltd in the football club, Royal AM FC, to the open market.

"The Curator Bonis of Royal AM Football Club (Pty) Ltd officially invites any interested parties to submit offers for the purchase of the football club as a going concern," said Venter in a statement.

It further stated that the Curator Bonis is endeavouring to achieve the maximum realisable value.

SUNDAY TRIBUNE