ANC could face liquidation if they can’t pay their debt
It is unclear whether the assets set to be seized from Luthuli House could cover the ANC's R102 million debt, and if it can't, the applicants say they might pursue a liquidation order against the country's governing party
General views of the African National Congress (ANC) headquarters Luthuli House in Johannesburg, 9 December 2020. Picture: Michel Bega
The Sheriff of the Court has been given the go ahead to start attaching movable assets at the ANC’s historic Luthuli House headquarters, but whether this will be enough to recoup R102 million’s worth of debt remains to be seen. And if it’s not, the consequences for the governing party could be dire.
The process is still at an early stage and it’s unclear right now exactly what stands to be attached – or what it stands to fetch under the hammer.
But Shafiek Salie – from Salie & Ishmael Inc, the legal firm spearheading the action on behalf of marketing agency Ezulweni Investments – on Wednesday said that were it not enough, his clients would have to consider their options. And he said these could potentially include a move for a liquidation order against the ANC.
Salie was, however, emphatic this was still a long way off and said a forensic audit had not even been conducted yet. In the meantime, he said his clients remained hopeful the parties could come to an agreement.
“We’re not being unreasonable,” he said.Eish
At the heart of the dispute between Ezulweni and the ANC is R102 million worth of debt owed to the former by the latter, for its work on the party’s 2019 election campaign.
The South Gauteng High Court has found they had a binding verbal agreement and last month, it threw out an application from the ANC for leave to appeal.
While the party has so far remained mum on the issue, it’s understood the ANC is now planning on turning to the Supreme Court of Appeal. But in the meantime, Ezulweni on Monday secured an execution order to begin the attachment process.
The party still has a fighting chance to hang on to its assets.
Legal expert advocate Paul Hoffamn SC said it could potentially approach the court to stay the order, pending the outcome of an appeal.
“But the ANC would have to prove it had reasonable prospects of success in that appeal,” he added – highlighting it had already been turned down once.
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