By Lehlohonolo Lehana.
The African National Congress (ANC) and Ezulweni Investments, has once again reached an out of court settlement over an outstanding R85 million for election campaign material, including posters and banners, supplied in 2019.
Ezulweni Investments is a medium-sized Durban-based company owned by Renash Ramdas, who is a party cadre.
This is the second out-of-court settlement, but the ANC defaulted on its payments leading to Ezulweni Investments, obtaining a writ of execution to attach its movable assets and freeze bank accounts.
The ANC then filed an application to overturn the freezing of its accounts, saying the freezing of its accounts posed an existential crisis for it as it could not pay its employees from across the country.
Gwen Ramokgopa, the ANC’s treasurer-general, argued that this is not just a financial issue but an attack on the party’s operational capacity, democratic role and credibility.
However our source told us that both parties have reached an out of court settlement and agreed to keep it confidential.
“Both parties agreed to enter into a new settlement agreement, supplanting all others, including the court judgment of November 2023. Its contents will remain confidential.”
The ANC previously denied that any contract existed, arguing that the signatories lacked the necessary authority and that the factual disputes remained unresolved.
In late 2023, the Supreme Court of Appeal (SCA) rejected these claims, finding no bona fide factual disputes and confirming that one official had authority to conclude election-related contracts.
A month later, on 21 December 2023, the ANC and Ezulweni signed a settlement agreement. In it, the ANC placed an order valued at R190 million to write off the historic debt.
This was effectively a contract for 2024 election materials, including 15,000 banners and 1 million corex boards earmarked for what the ANC calls “strategic partners” and “strategic alliances.”
Meanwhile both ActionSA and the DA want the Electoral Commission of SA to investigate the ANC settlement agreement, as it may amount to an undeclared political donation.
The IEC has long stated that its powers to investigate are hamstrung by legislation, which stipulates that prime facie evidence must be presented for an investigation to occur.