Shauwn Mkhize Loses Court Battle Against SARS

The South African Revenue Service (SARS) has secured a legal victory after the North Gauteng High Court struck off Shauwn Mkhize’s urgent application, which sought to compel a court-appointed curator to issue a financial assurance letter to the National Soccer League (NSL).

The ruling further complicates Royal AM FC’s already dire financial situation, which has resulted in the club being unable to participate in the Betway Premiership and Nedbank Cup.

Royal AM’s Financial Woes Continue

Since the start of the 2024/25 soccer season, Royal AM has struggled to fulfill its fixtures due to ongoing financial troubles.

Reports indicate that the club attempted to pressure the court into forcing the curator to confirm its financial stability, but on February 5, the court dismissed the application, citing a “lack of urgency.”

SARS Commissioner Edward Kieswetter welcomed the court’s decision, highlighting the importance of compliance with tax obligations.

“It boggles the mind that taxpayers will turn to courts with ease yet fail to meet their responsibilities with the same enthusiasm,” Kieswetter said in a statement.

SARS vs. Mamkhize: Long-Running Legal Battle

This ruling is yet another setback for Mkhize, who has been embroiled in financial disputes with SARS. The Durban, Pietermaritzburg, and Pretoria high courts have previously ruled against Royal AM and Mkhize’s other entity, Shandi Trust, over outstanding debts.

Reports suggest that Shandi Trust owes SARS approximately R37 million, and Royal AM allegedly failed to pay player salaries in December 2024.

Adding to Royal AM’s troubles, the Msunduzi Municipality has withheld R9 million in sponsorship funds for the 2024/25 financial year due to the club’s failure to meet contractual obligations.

The municipality had committed to a three-year sponsorship deal worth R27 million, aimed at boosting tourism by filling the Harry Gwala Stadium with soccer fans. However, amid financial instability and negative publicity, the municipality is now considering terminating the contract altogether.

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The Democratic Alliance (DA) has taken legal action to cancel the sponsorship deal, arguing that it was awarded unlawfully, given Mkhize’s ongoing legal troubles. The matter is set to be heard in the Pietermaritzburg High Court on February 28.

With Royal AM still suspended from the NSL and facing mounting legal and financial challenges, its future remains uncertain. Meanwhile, Mkhize and Royal AM’s general manager, Richard Makhoba, have not responded to enquiries regarding the latest court ruling.

As the legal battle intensifies, the club’s survival in South African football hangs in the balance.

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