Broke KZN Municipality Insists on R27 Million Royal AM Deal Despite Ballooning R400 Million Eskom Debt

• With only 27 days' cash on hand, the broke Msunduzi Municipality is insisting on a R27 million sponsorship deal with Royal AM
• Service delivery in the municipality is crumbling, coupled with a R400 million debt with Eskom and another bill to settle with Umgeni Water
• Opposition parties have criticised the soccer club sponsorship deal in light of the KZN municipality's dire financial constraints

PIETERMARITZBURG - Service delivery is in shambles in the nearly penniless Msunduzi Municipality in KwaZulu-Natal.

The municipality reported that it only has 27 days of money on hand, preventing it from settling its astronomical debt with Eskon and Ungeni water.

Muzunduzi insists on R24m Royal AM deal

However, with the stark financial realities, the powers that be are still looking to fork out R27 million to alleged billionaire Shauwn MaKhize Mapisane's Royal AM instead of prioritising service delivery.

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News24 reported that as of May, the municipality had a R400 million bill to settle with Eskom and ran to the National treasury to help pay the debt.

Speaking to the publication, Msunduzi Mayor Mzimkhulu Thebolla said that the Royal AM deal will paid out in portions. In the same breath, Mzinkhulu insisted that the municipality implemented cost-containment measures and had a payment plan with Eskom and Umgeni waters.

Msunduzi Municipality plans salary hikes

Despite the ongoing service delivery crisis and mismanagement in Msunduzi, the municipality has also proposed salary hikes for councillors.

The Witness reported that Msunduzi Municipality would apply for 100% salary increases for part- and full-time councillors.

Opposition slams Royal AM deal and proposed salary hikes

Opposition parties have come out against Msunduzi Municipality for prioritising the soccer club sponsorship and salary hikes over service delivery.

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ACDP councillor Niemand Reinus said the city has been under administration for four years, and the financial situation continues to decline.

The Democratic Alliance put the municipality on terms and is threatening to take it to court over the deal. The DA also opposed the hikes, claiming with service delivery declining throughout the city, giving councillors increases for poor performance would be hypocritical.

Msunzudi's financial situation causes upset

Below are some comments:

@garth_gopi criticised:

"The municipal business model is wrong for South Africa! It has to be reassessed. Almost every municipality is bankrupt or close to bankruptcy."

@KesterWaterloo joked:

"I am sure the workers won't mind not being paid a month or two. They can get free tickets to go watch a Royal AM match."

@alwaysaredd condemned:

"Yet they all get paid and still enjoy all the perks that come with that office."

@Misantroop99 said:

"Residents must follow the example set by Westville Ratepayers in Ethikwini. Boycott. Let's see how they will sponsor soccer teams when they can't even pay salaries."

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@TDModise criticised:

"That's money laundering at its best, they think we are all slow thinkers."

City of Cape Town to sue Santaco

In another story, Briefly News reported that not all has been forgiven between the City of Cape Town and the SA National Taxi Council (Santaco) since the eight-day taxi protest that caused chaos in the mother city.

The City of Cape Town wants to take legal action against Santaco and plans to sue for the damages caused by taxi drivers during the tumultuous week.

According to News24, Mayor Geordin Hill-Lewis says he told the various departments in the local government to estimate the damage caused during the strike.

Source: Briefly News