Business tycoon and media personality Shauwn Mkhize faces yet another challenge following the loss of her soccer club, Royal AM FC.
This comes after the Pietermaritzburg High Court rulling that declared the R27 million sponsorship deal with the Msunduzi Municipality unlawful. The ruling highlighted that Shauwn as the owner of the club is required to pay back the money.
According to Scrolla Africa, Judge Nontuthuzelo Mlaba said in her judgement that it appeared the municipality wanted marketing and promotion benefits from its deal with Royal AM.
“These are services that any other soccer club based in KwaZulu-Natal could have been interested in, given the benefits they would gain from the sponsorship contract. The chance was, however, not made available to other KZN soccer clubs.
“No reasons were given as to why it was Royal AM in particular that was chosen,” she said.
The South African reported that the local ratepayers and civil society groups, who have long opposed the deal, have welcomed the court’s decision as a victory for transparency and accountability.
According to the publication, CEO of the Msunduzi Association of Residents, Ratepayers and Civics (MARRC), Anthony Waldhausen said: “We’ve been against the sponsorship from the start.
“Now, we’re looking forward to the municipality taking steps to recover the money owed. That funding should be redirected to urgently needed service delivery,” said Anthony.
This all comes after the construction mogul allegedly owed South African Revenue Services (SARS) over R30 million in outstanding taxes.
In an attempt to repay the taxes, SARS did a search and seizure, where luxury vehicles, which included a Lamborghini and a Rolls Royce owned by Shandi Trust and Royal AM, were seized and auctioned to recover her outstanding taxes.
