The ANC had no other choice but to enter a settlement agreement with Ezulweni Investments, which the party owed well over R100 million, according to analysts.
Before the settlement, which the ANC announced in December, the Supreme Court of Appeal ordered the political party to pay the printing and marketing company more than R100m for the production of banners during the 2019 elections with the figure, including interest, by then sitting at R150m.
The ANC initially said it would challenge the ruling in the Constitutional Court until last month when the 5-year-long ANC Luthuli debt concluded with an out-of-court settlement.
In a statement on Monday, Ezulweni Investments confirmed that it had “reached an out-of-court settlement with the ANC”.
“We wish to thank the negotiating committee, chaired by Dr Gwen Ramokgopa, for its commitment to resolving this matter amicably,” said company spokesperson Peter Fernando.
Donda Attorneys’ managing director, Melusi Xulu, explained the reason to settle was because the case was contractual and the work had been done.
“The reason to settle was because the case of Ezulweni Investments against ANC is based on the fact that one Ezulweni has a strong claim for the R102 million, they did the work, the contract was there, due to that they are then owed that money.
“Second, the ANC indicated it wanted to appeal the matter in the Constitutional Court, but there’s no Constitutional issue, it's a contractual matter.
“It’s either the ANC owes Ezulweni or they don’t owe. If the highest court stated they owe, there’s nowhere further to go because it’s not a constitutional matter. That’s the reason why there’s a settlement. If they don’t settle, they are going to attach their assets. I don’t think there is any other alternative, it’s either they pay or the sheriff would be sent to Luthuli House to attach the assets, so that they can be sold (to recover the funds),” said Xulu.
UWC adjunct political science professor Keith Gottschalk said the ANC was well advised to settle this, and “all other debts, as speedily as possible”.
“It must take a huge chunk out of the ANC’s budget for campaigning in the 2024 elections. This dispute means that companies making posters, banners, and other campaigning materials might in future demand upfront payment from the ANC, for fear of being left with unpaid bills.
“The ActionSA litigation reminds us that one individual donor is limited to a maximum of R15m, so settling such a large bill will require quite a few donors,” he said.
Political analyst , Professor Sipho Seepe said: “The Ezulweni Investment matter gives credence to the view that Ramaphosa is an agent of white monopoly capital to destroy the ANC. It is this very group that is historically aligned to anti-ANC forces but was willing to raise purportedly R1 billion for his campaign.
“Prior to Ezulweni, the ANC headquarters found it difficult to pay salaries for its employees. As ANC approaches the elections, it does so having to confront the worst Constitutional scandal in Phala Phala.
ANC MPs were able to shield Ramaphosa from accountability. Voters will not be that kind. The ANC is naked and exposed, with Ramaphosa proving to be its worst president.”
Meanwhile, ActionSA said it had written to IEC chief executive for party funding George Mahlangu, seeking an investigation in terms of “Section 14 of the Party Funding Act into the ANC’s settlement of an over-R102 million debt with Ezulweni Investments”.
“ActionSA has taken this step because South Africans must know how this debt was settled,” said ActionSA national chairperson Michael Beaumont.
The IEC confirmed the letter was received on Wednesday, January 9, 2024.
"As such, the matter is still being considered in terms of whether it satisfies the requirements of the Act for investigation.
"The matter is still being considered in terms of whether it satisfies the requirements of the Act for investigation."
According to the IEC the declaration of donations made to political parties during Quarter 3, which ended on 31 December 2023, are only due at the end of January 2024.
"For this reason, it may be worthwhile to wait until such declarations are made before any action is considered or taken," the IEC added.
Cape Times