KZN Finance Committee demands action from Royal Household Trust amid R10 million budget shortfall
King Misuzulu kaZwelithini. The Royal Household Trust was set up years ago to allow it to fundraise in order to make the Royal House financially independent.
Image: Independent Newspapers Archives
The Royal Household Trust is under fire for its failure to make the Royal Household financially independent and has been told to shape up or shut down.
Frustrated members of the Finance Portfolio Committee recently expressed their dissatisfaction with the entity's performance during a meeting with Trust officials, where it presented its performance review.
The Trust briefed the committee on the work being done to make the Zulu royal house self-sustaining and informed them that it needs an additional R10 million to meet some obligations. Without this funding, it may need to halt some of its support services.
The Trust was set up years ago to allow it to fundraise in order to make the Royal House financially independent. However, it has struggled to implement any programmes that could generate revenue.
It recently floated the idea of starting student accommodation, but this was viewed as a long-term project. Additionally, it is working on a beef production plan as another effort to generate revenue. Trust officials said the beef production plan “must” succeed following numerous failures of other business projects. The Finance MEC, Francois Rodgers, recently met with King Misuzulu regarding the project.
Sipho Buthelezi, Chief Financial Officer of the Royal Household Trust, stated, “There is a similar beef project that is underway successfully in the Eastern Cape, and they will be visiting there for a learning opportunity. I can say that this is one project that we all want to see succeed after we have tried so many projects that did not continue.”
He said this financial year, the Trust needs additional government funding to meet its obligations.
“We have been saying for about three years that when the king was installed, the beneficiary list changed. The budget was supposed to be reviewed to take into account the changes, and that did not happen. Hence, on an annual basis, we are requesting a budget adjustment, or we will be forced to stop some of the support we are providing,” he said.
CFO in the Premier’s Office, Sthembiso Ntombela, said the Trust is struggling financially as a result of additional beneficiaries and legal fees. Committee member Celiwe Madlopha questioned the Trust's viability and performance. She said if the Trust was carrying out its fundraising mandate then the R10 million shortfall could be covered.
“I do not think that the fundraising was working, (otherwise) you (the Trust) would not be coming here to ask for more money. The fundraising was the sole purpose for which the Trust was set up, as the government cannot fundraise.” She questioned whether the Trust will ever be in a position to deliver on its mandate. “To me, this Programme Three (fundraising) is not working and (if) it will never work; there is no reason for the Royal Household Trust. I will say that maybe I am harsh.
“That unit was in the Premier’s office before, and it was said that to allow for fundraising, we must form this Trust, but now, it is not working. “I do not see any progress; everything it starts, it does not finish. They start, then there is a problem. Throughout the whole term of the sixth administration, I did not see anything. “Can we be honest and say there is a bright future with regard to the Trust’s ability to fundraise?” she concluded.
Committee member Lourens De Klerk stated that the Trust’s reason for existence in its current form is to generate its own income. “We have been asking for a plan forever, and with the responses we get, we receive vague and embarrassing answers—no indication of a plan or timelines, just promises that something will happen. That is not promising at all.
“They (Trust) are asking for R10 million, which flies in the face of what the Trust exists for. The mere fact that you are asking for R10 million is proof that you are failing,” said De Klerk.
The CFO of the Trust, Buthelezi, however assured the members there was still hope for the Trust, stating: “We see the light. We have received good support from the Department of Agriculture.”