JOHANNESBURG – Royal AM, the Premier Soccer League (PSL) club owned by controversial businesswoman and reality TV star Shauwn 'MaMkhize' Mkhize and her son Andile Mpisane, is set to be sold by the South African Revenue Service (SARS) in a bid to recoup approximately R37 million in unpaid taxes.
The dramatic turn of events follows a protracted legal battle between MaMkhize and the tax authority, culminating in a recent court ruling that paved the way for the sale of the Pietermaritzburg-based club, also known as Thwihli Thwahla.
MaMkhize's troubles with SARS began in 2024, when the KwaZulu-Natal Local Division of the High Court granted a preservation order and a search-and-seizure warrant in a case involving the Commissioner of SARS versus MaMkhize and others. This led to the club being placed under curatorship, with a court-appointed curator taking charge of its financial affairs.
At the time, SARS issued a statement, saying: "SARS is pleased to announce a significant development in our effort to combat tax evasion and criminal activity that undermines the country's economy. The KwaZulu-Natal Local Division of the Durban High Court has granted a preservation order and a search-and-seizure warrant in the case involving the Commissioner for SARS versus Shauwn Mkhize and Others."
In a last-ditch effort to retain control of Royal AM, MaMkhize took SARS to the High Court last week, seeking to prevent the court-appointed curator from assuming full financial control of the team. However, Mkhize's efforts proved unsuccessful, with the High Court ruling against her.
Following MaMkhize's loss in court, SARS Commissioner Edward Kieswetter issued a statement emphasising the importance of tax compliance. "SARS is pleased with the court's decision to strike the matter from the court's roll for lack of urgency. Taxpayers have a legal obligation to all at times fulfill this without fail and remain compliant with their tax affairs," Kieswetter said.
He added, "It boggles the mind that taxpayers will turn to courts with ease yet be derelict in their responsibility to meet their obligations with similar enthusiasm." Kiewetter further stated that SARS is "enjoined by the law to administer the law without fear or favour and to ensure that all taxpayers who are expected to register, file and pay their taxes do so with ease."
With the legal avenues exhausted, SARS is now poised to auction Royal AM to settle the outstanding tax debt. It is also likely that the expensive cars confiscated during the November raid will be auctioned off to further recoup the owed millions.
SARS spokesman Siphithi Sibeko confirmed to Daily Sun that the curator is currently responsible for all actions concerning the club. "When the curator gets appointed by the court, they'll get a mandate to sell something from someone owing and pay someone who is owed," Sibeko said.
He clarified that "Sars only acts on the basis of what he gets given. The curator is independent, so Sars won't be one selling the club. It's the curator that does what he has to do empowered by the law. He knows, as the curator, about what to do to pay creditors."
MaMkhize was unavailable for comment on the matter. The PSL has also not yet commented on its future action following the Royal AM FC controversy. The curator's contact details were also unavailable.
