Msunduzi under fire for R27m Royal AM deal, while R400m Eskom debt grows

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Msunduzi under fire for R27m Royal AM deal, while R400m Eskom debt grows
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The Msunduzi Municipality has come under fire for insisting on a R27m Royal AM sponsorship deal despite dwindling service delivery and a R400m debt with Eskom.

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

reported that Msunduzi Municipality would apply for 100% salary increases for part- and full-time councillors.Opposition parties have come out against Msunduzi Municipality for prioritising the soccer club sponsorship and salary hikes over service delivery.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."The municipal business model is wrong for South Africa! It has to be reassessed. Almost every municipality is bankrupt or close to bankruptcy.""I am sure the workers won't mind not being paid a month or two.

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