The African National Congress (ANC) is facing an attempt to seize nearly R40m from its bank accounts, including those earmarked for elections, fundraising, and salaries. A private company, Eltel, has moved to enforce a debt it claims the party has failed to settle for over seven years. According to documents filed in the high court in Johannesburg, the debt arose from work allegedly completed for the party in 2019.
Eltel's particulars of claim state that the ANC owes the company R36.4m, excluding additional interest and legal costs. The debt was formally acknowledged by then treasurer-general Paul Mashatile in 2022. Mashatile allegedly confirmed that the ANC owed the company R24.2m, comprising outstanding capital, interest, and legal costs. An instalment payment arrangement was agreed upon, but the ANC allegedly failed to honour the agreement.
Eltel has moved to attach money held in five of the ANC's Nedbank accounts, including the party's elections, fundraising, levies, and salary accounts, as well as an account designated for the Electoral Commission of South Africa (IEC). A notice to the bank dated September 25 demands that money held in the identified accounts be paid over to satisfy the alleged judgment debt of R39.9m, including interest.
The notice calls on Nedbank to pay over the money within nine days of service, warning that failure to comply may result in Eltel approaching the court for an order compelling payment. The ANC is presently indebted to Eltel in respect of agreed work done by Eltel for the ANC during February 2019 to May 2019. The company claims that the party's subsequent engagements over the debt amounted to repeated acknowledgements of liability.
A draft default judgment order filed on September 25 provides for the ANC to pay R36.4m, together with R582,531 in interest calculated from July 1 to September 25 2026, and legal costs of R2.9m. The litigation was instituted after a combined summons was issued against the ANC in September, with the sheriff's return of service recording that the documents were served at the party's headquarters, Luthuli House, in Johannesburg.
The case raises questions about the party's outstanding financial obligations and the potential impact of the enforcement proceedings on accounts intended for its operations, including election-related activities. However, the documents do not establish how much money is currently held in the five accounts or whether the balances are sufficient to satisfy the amount being pursued.
The Sunday Times sent questions to ANC spokesperson Mahlangi Bhengu-Motsiri, but she did not respond to calls or WhatsApp messages. The final status of the judgment and execution process requires confirmation from the court.
Key points
- The ANC faces a R40m seizure from its bank accounts due to an unpaid debt to Eltel.
- The debt arose from work allegedly completed for the party in 2019 and was formally acknowledged by Paul Mashatile in 2022.
- Eltel has moved to attach money held in five of the ANC's Nedbank accounts, including those earmarked for elections and salaries.
