DA KZN spokesperson on Cogta Martin Meyer said that in a parliamentary reply to questions by the DA has seen KZN Cogta MEC Bongiwe Sithole-Moloi admit that Msunduzi Municipality’s R27 million sponsorship of the Royal AM may have been unreasonable.
Durban — KwaZulu-Natal Department of Co-operative Governance and Traditional Affairs (Cogta) MEC Bongi Sithole-Moloi said the department reasonably believes that the timing of the Msunduzi Local Municipality’s council decision on the sponsorship of Royal AM FC may have been unreasonable.
This is contained in a KZN legislature written question from DA KZN spokesperson on Cogta, Martin Meyer.
Meyer had asked an array of questions, which included the municipality being under administration, Msunduzi’s financial state and the sponsorship agreement.
In her responses, Sithole-Moloi confirmed that Msunduzi is still under administration.
She also confirmed that Msunduzi regressed from an unqualified audit opinion with findings to a qualified opinion.
On confirming whether or not Msunduzi’s financial state is unhealthy, Sithole-Moloi said: “Msunduzi Municipality’s financial position has improved from an unfunded budget to a funded budget. However, there is still a need for improvement as its current ratio is below the norm at 1.14 and 0.46 cash coverage at the end of September 2023 whilst it is servicing debt for Umgeni Water (now uMngeni-uThukela Water) and Eskom through the payment plans.”
When asked that under the Terms of Agreement regarding the administration of Msunduzi Municipality, is a sports sponsorship of R9 million over a period of three years allowed, Sithole-Moloi said that the ministerial representative has not yet allowed the municipality to incur any expenditure on the sponsorship of a soccer club until the necessary processes are followed.
She explained that when the municipality is still under intervention in terms of Section 139(1)(b) of the Constitution, its council still retains its legislative authority, which amongst others includes the approval of the Integrated Development Plan (IDP) and the budget. Section 152 of the Constitution outlines the role and responsibilities of municipalities. To which Msunduzi Municipality is bound to comply. The ministerial representative is appointed by the provincial executive council to support the municipality in fulfilling the afore-stated mandate.
“Although the ministerial representative is still processing the matter in line with his Terms of Reference, the department reasonably believes that the timing of the council decision on the sponsorship may have been unreasonable, not because the municipality is under administration, but mainly due to legislative processes that the municipality has not yet fulfilled,” Sithole-Moloi said about whether the expenditure is justified.
On whether the administrator agreed to the sponsorship deal, Sithole-Moloi said: “According to the information that is at the disposal of the department, the Ministerial Representative is yet to ratify the council decision on sponsorship; further, he has raised with the municipal manager and the municipal leadership specific concerns and conditions, which if they are not addressed; the resolution may not be implemented in its totality.”
Reacting to the answers Meyer said in the reply, Sithole-Moloi admitted that the municipality’s R27 million (over three years at R9 million) sponsorship of the Royal AM soccer team may have been unreasonable.
He also said that in an attempt at spin, the Sithole-Moloi then stated that this was due to correct processes not having been followed.
“Msunduzi Municipality remains in a dire financial position – confirmed by the MEC’s own admission. The last thing it should be doing is sponsoring a soccer team owned by a wealthy individual,” Meyer said.
“The MEC knows this is a bad decision. She admits it’s a bad decision. Yet she does not publicly come and say so to Msunduzi’s ANC-run council.”
Meyer said that as always, Sithole-Moloi remains the MEC of inaction and is too scared to speak up when her ANC comrades are involved.
The auditor-general has also lamented the state of Msunduzi’s finances and has confirmed that correct processes were not followed in terms of the sponsorship, Meyer said.
“The DA calls on MEC Sithole-Moloi to have the courage of her convictions and prevent this sponsorship from taking place. There is no money for nice-to-haves when services are so severely lacking in Msunduzi and across the province.
“The DA will maintain its pressure on the municipality and at provincial level to ensure that – like the Samas – this sponsorship is cancelled. It is not in the best interests of the people. We will also write to Premier Nomusa Dube-Ncube to request intervention over this shocking misuse of public money,” Meyer said.
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