By Lehlohonolo Lehana.
President Cyril Ramaphosa has told the party leaders that he will handle the R102 million election debt, for the printing and installation of banners for the party’s 2019 election campaign.
Ramaphosa was speaking on the sidelines of the government’s Imbizo in Welkom on Thursday.
The party and Ezulweni Investments are involved in a dispute, with the printing and marketing company claiming the ANC owes it more than R100 million for the provision of election banners in 2019.
In November, the Supreme Court of Appeal (SCA) ruled in favour of Ezulweni Investments, which supplied the ANC with campaign material for the elections.
The party was ordered to pay over R100 million for the election banners.
The company had also applied to have ANC assets seized after the party refused to pay despite a court order.
However, the ANC maintains the contract was signed by two junior staffers without the necessary authority, and has also accused the company of bribery.
It has vowed to approach the Constitutional Court in an attempt to settle the dispute.
“The ANC, like any other party, does face challenges when it comes to issues of resources, mobilisation,” Ramaphosa said.
“We have faced difficult moments like this; we always overcome them, and we will overcome this one. We will solve this challenge. We will campaign very vigorously, and we will be well-resourced as we go into the campaign for next year’s election. Just watch the space.”
Ezulweni Investments threatened to have the ANC liquidated over the debt, but has agreed to wait for the party’s appeal in the Constitutional Court.
In a statement, CEO Renash Ramdas said that while providing this extended deadline, the company was concurrently preparing an opposing affidavit to challenge the ANC’s application for leave to appeal.
“As stated previously, the application [ANC’s leave for appeal] is without merit or substance. In due course, Ezulweni will file its opposing affidavit, and the opposing papers will speak for themselves, “said Ramdas.
Ramdas said the temporary halt on liquidation proceedings is a gesture acknowledging the sacrifices made by the party in liberating the country.
“This is to afford concerned loyalists of the ruling party some time and opportunity to resolve the dispute or take cession of the debt, putting on hold the intention to proceed with the liquidation proceedings,” he said.
Legal experts said the move by the ANC to approach the Constitutional Court could be a tactic to buy itself more time – at least until 2024, and to possibly persuade the Ezulweni legal team to enter into some kind of settlement.
ANC Treasurer-General Gwen Ramokgopa had previously met the company owners in a bid to settle the matter out of court.
However, the talks fell through as the party offered them a “ridiculous” amount of money on the basis that they would hire the same company for the 2024 elections, and then settle both accounts in small portions.