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KwaZulu-Natal Premier S'bu Ndebele has appointed board members to the Royal household trust that will handle King Goodwill Zwelithini's financial matters.
Ndebele said the acting head of the royal household department, Vusi Shongwe, and historian Professor Otty Nxumalo had been appointed to lead the trust.
The act to establish the trust was passed last year.
There was speculation that the formation of the trust was an attempt by the ANC to control royal household expenditure.
The King had expressed opposition to the bill before insisting that the royal household department be part of the trust.
The trust will also receive funds from the government but it will be separate from the royal household department.
Chairman of the premier's portfolio committee, Mike Tarr, said the trust had no intention to disband the department.
"The trust will run separately from the government department. There are functions that the government department cannot perform but which the trust can handle.
"A trust was necessary to raise money that could be used for the benefit of the royal family," he said.
Tarr said the trust would ensure that the royal family had its own resources.
Tarr added that the creation of a trust was in line with how other royal families sustained themselves.
In the 2007/8 financial year the royal household budget was R36,4million, an increase of R6million from the previous year.
The budget included R14million for the refurbishment of King Zwelithini's palaces, R2,2million for the maintenance of royal farms, as well as R20,1million for travel expenses.