By Lehlohonolo Lehana.
The African National Congress (ANC) has reached an out-of-court settlement with Ezulweni InvestmentS over the election posters contract.
The party had failed to pay the R102-million debt plus interest and costs for election banners ahead of the 2019 general elections.
Earlier this year, the Office of the Sheriff raided the party’s headquarters at Luthuli House in Johannesburg in an attempt to settle the debt.
In a short statement, no details of the settlement agreement were given and the party said the matter had been resolved in the best interest of both parties.
Ezulweni is a small Newcastle-based company which had secured three attachment orders against the ANC. Its owners incurred debt to quickly produce the party’s banners before the 2019 election.
The three judges had refused to grant the ANC leave to appeal against their order that it must pay up, but on petition to the SCA, that court granted special leave to appeal.
The ANC had sought to distance itself from the verbal agreement, claiming that the two officials who had negotiated with Ezulweni boss Renash Ramdas, had no authority to do so.
The SCA dismissed, with costs, the ANC’s appeal against a high court judgment that the party was responsible for the outstanding amount of R102m for the 2019 election material.
The SCA also rejected the party’s recent application to lead new evidence during its appeal in the form of a forensic report, ostensibly done by EMS Forensics into the procurement of the highly contentious contract.
To prevent the seizure of its assets, the ANC had approached the Constitutional Court, arguing the SCA chose to ignore the forensic report.
The ANC had until close of business on 6 December 2023, either to pay the full judgment debt into its Ezulweni’s trust account, the failure of which will see Ezulwini Investments proceed with the liquidation process.
Meanwhile the party through its lawyers, has sent a letter to Jabulani Sibongiseni Khumalo demanding that he desist from using the uMkhonto we Sizwe logo and trademark.
The unauthorised use of the mark therefore amounts to passing-off in terms of the common law and is unlawful.
The ANC wants Khumalo to cease using the trademark of the MK by close of business on 29 December 2023, or the party will institute civil proceedings against him which will include a claim for royalty payment for the unlawful adaptation and unauthorised use of the uMkhonto we Sizwe trademark.