The decision to bankroll a now-defunct soccer club to the tune of R27m could well be the red card for Msunduzi mayor Mzimkhulu Thebolla.
The Pietermaritzburg high court has declared the municipality’s 2023 sponsorship of Royal AM unlawful, has set aside the council decision that authorised the deal and has ordered the club, owned by reality TV star Shauwn “MaMkhize” Mkhize, to pay back the money with interest.
The municipality, which was placed under administration in 2020, was last month warned by KwaZulu-Natal co-operative governance and traditional affairs MEC Thulasizwe Buthelezi to co-operate with his investigation into their finances or face the consequences.
Buthelezi launched forensic investigations into Msunduzi, Nongoma and KwaDukuza municipalities in March after allegations of fraud and corruption and in the wake of findings by the auditor-general.
The council ignored ratepayers' objections when it previously bankrolled Maritzburg United, also to the tune of R27m.
After United’s relegation from the DStv Premiership in June 2023, the city severed ties with the club and controversially wooed Royal AM, who at the time had a deal with eThekwini municipality for R15.75m over three years.
That decision ticked off ratepayers and opposition parties, who claimed the city was not in a position to spend so much on a soccer club especially one owned by a flamboyant millionaire.
The court decision is another setback for the controversial businesswoman, after a raid was conducted by the South African Revenue Service she fell behind on her taxes in November 2024 and her exit from former Premier Soccer League team Royal AM FC, which was auctioned off to recoup her reported R40m tax debt.
The DA took the matter to court, which culminated in last week’s ruling. The party is now calling for Thebolla’s head, noting it was under his leadership and support that the deal was “pushed through” despite their “repeated objections and formal legal warnings”.
“[That is] a clear dereliction of duty and a blatant disregard for governance, fiscal responsibility and the law,” said DA’s uMsunduzi caucus leader Ross Strachan.
That conduct, Strachan said, has resulted in the city wasting R27m, added significant legal costs for ratepayers and has stolen vital resources from urgently needed service delivery.
The court decision vindicates what we have been making noise about all this time. The residents we represent expect us to be responsible as leaders and hold each other to account. The council took an unlawful decision and the mayor, as resident No 1, must take responsibility
— Chuma Wakeni, EFF caucus leader
He cited these reasons for filing a motion of no confidence in Thebolla on Tuesday.
“This is not a partisan issue — it is about doing the right thing for the people of Msunduzi and restoring integrity to local government,” he said.
“It is now time for all councillors who care about accountability, service delivery and the wellbeing of our residents to stand together. Msunduzi deserves leadership that serves the people — not political vanity projects.”
Opposition parties in the council said they are yet to receive communication from the DA and have expressed mixed views on the call for Thebolla’s removal.
John Randall from the Patriotic Alliance, which holds a single seat in the council, told TimesLIVE Premium Thebolla should not be “targeted” alone.
“That was a council decision that was voted for by the majority of the members, the mayor cannot make such decisions unilaterally. So why don’t you target everyone who voted for that decision on the day? If the mayor had taken that decision then you can challenge him on it, but that was a council decision and everyone who voted for it should take responsibility.”
But Nduna Ntombela, the IFP caucus leader, disagrees. He said the council members cannot take responsibility for a deal they vehemently opposed and warned against.
He said the IFP, the second biggest party in the council after the ANC and DA, has always voted in opposition of that deal, along with the DA and ACDP, while the EFF abstained.
He said the councillors who supported the deal should take the responsibility, including paying the lawyer fees, and that the party will support the motion as there is evidence of Thebolla’s role.
“They are specific that the mayor, as the political head, was the one who was leading the presentation for that deal and he was the one defending it, so we will support the motion because we are speaking on behalf of the people of uMsunduzi,” he said.
“Even in Exco we didn’t support it, but since they [ANC] have the majority in the Exco as well they outvoted us and managed to push it through. We can’t then be expected to take accountability for that.”
Chuma Wakeni, EFF caucus leader, said they are not scared to vote with the DA when it presents a motion that makes sense to them. “We work with everyone on a case-by-case basis. If the DA approaches us we will apply ourselves on this and take it from there. As it is, we agree with what the court says,” he said.
It was the party’s long-held view that the deal was not right considering the challenges facing the city, he added.
“The court decision vindicates what we have been making noise about all this time. The residents we represent expect us to be responsible as leaders and hold each other to account. The council took an unlawful decision and the mayor, as resident number one, must take responsibility.”
Mkhize and Thebolla didn't respond to queries.
Strachan added that Royal AM was also ordered to pay back interest and this money be set aside for infrastructure.
“We further demand that once the recovered funds are returned, they be ring-fenced and immediately allocated to critical water infrastructure upgrades and water reticulation projects across the municipality, to directly address Msunduzi's ongoing water issues.”
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