ANC may face liquidation as court attaches assets for failure to pay client

The ANC owes Ezulweni Investments nearly R150 million for election material supplied during the 2019 campaign.

The public relations company, which was not paid for political campaign-related services, obtained a writ order from the Gauteng High Court, allowing the sheriff to attach ANC assets after the Supreme Court of Appeal (SCA) dismissed the ANC’s appeal.

The SCA upheld the high court judgment, holding the ANC liable for the outstanding amount, directing the sheriff to attach movable goods at Chief Albert Luthuli House. The order includes R102,465,000 with interest rates ranging from 10% per annum (1 Sep 2019 to 29 Feb 2020) to 8.75% per annum (1 May 2020 until payment). Attorneys’ fees and sheriff’s execution costs are also included in the total.

The SCA ruling stated: “The version of the ANC accordingly does not raise bona fide factual disputes. It does not warrant the approach that the matter should have been decided on its version. On the contrary, the court of first instance and the full court were amply justified in basing their findings on the version of Ezulweni where the two versions conflicted.”

The sheriff has the authority to assess and attach ANC assets, with an auction to follow.

Shafique Sarlie, the attourney representing Ezulweni Investments said, “Whatever the sheriff finds, he commands enough to satisfy the judge and, if it is not enough at a judicial sale, we will weigh our options and decide whether we proceed with liquidation proceedings against the ANC. We have given them the opportunity. We don’t want to embarrass the ANC [but] it has been three-and-a-half years. You cannot stall anymore.”

ANC bank accounts are subject to attachment; three accounts were previously attached by Ezulweni Investments. The legal dispute dates back to 2019 when Ezulweni provided election banners, costing R2,900 each, and sought payment.

The ANC ignored communications from Ezulweni, and the SCA found the ANC should have made efforts to disprove a contractual agreement. Text messages between Ezulweni’s executive and ANC officials confirmed an agreement, leading to the court’s ruling in Ezulweni’s favor.

Ezulweni Investments obtained a writ order in May 2023, prompting the ANC’s unsuccessful late appeal application at the SCA. The SCA deemed the ANC’s version not credible and affirmed the high court’s findings based on Ezulweni’s version.

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