R15m Municipal Deal Questioned
Controversy Surrounding Proposed Thanda Royal Zulu Sale
As reported in edition 1028 of Soccer Laduma, Thanda Royal Zulu’s R15 million contract with the City of uMhlathuze Municipality is being questioned.
Thanda is waiting on the PSL to hear if their proposed sale of the club will be approved before the start of the new season. Following their promotion from the NFD to the Mzansi’s top tier at the end of this past season, Thanda reached an agreement to sell its PSL status to AmaZulu.
A decision on the proposed sale of Thanda’s PSL status to AmaZulu is expected to be taken any time from now. But as reported by the Siya crew, it seems that the contract between Thanda and the City of uMhlathuze Municipality has been questioned.
“The deal with the municipality was signed without the chairman, Pierre Delvaux’s knowledge,” alleges a source.
“It’s invalid because only Pierre, the sole director, can do so. How does a municipality enter into negotiations without even checking?
“When you see the contract, you won’t believe what it looks like. I mean, it’s not even on a club letterhead but has the Thanda badge on the top of the page with no address, phone numbers or anything. That’s supposed to be a contract with the municipality! I believe under the municipal financial systems act that uMhlathuze could probably suspend their municipal manager,” said the source.
It has been reported that the club’s CEO, Sifiso “Jomo” Biyela, had signed the contract on the club’s behalf and the municipality’s spokesperson, Mdu Ncalane, told Soccer Laduma that Biyela does have signing powers.
“The information is misleading. Biyela is duly authorised. We wouldn’t sign a contract with an unauthorised person. When it comes to contracts, we’re giving Thanda R5 million per annum for three years plus other resources. So there’s no way the municipality would release money without any valid agreement. Documents are prepared by our legal team,” he said.
Delvaux preferred not to comment when contacted on the matter.