The African National Congress (ANC) is facing a significant financial challenge as a private company, Eltel, moves to enforce a debt of nearly R40m from its bank accounts. The debt, which arose from work allegedly completed for the party in 2019, was formally acknowledged by then treasurer-general Paul Mashatile in 2022. According to documents filed in the high court in Johannesburg, Eltel is seeking to attach money held in five of the ANC's Nedbank accounts, including those earmarked for elections, fundraising, and salaries.
The accounts targeted by Eltel include the ANC's elections, fundraising, levies, and salary accounts, as well as an account designated for the Electoral Commission of South Africa (IEC). The notice to Nedbank, dated September 25, demands that the money held in the identified accounts be paid over to satisfy the alleged judgment debt of R39.9m, including interest. Eltel claims that the ANC owes the company R36.4m, excluding additional interest and legal costs, which have escalated over the years.
The debt arose from an alleged agreement between the ANC and Eltel, where the company carried out work for the party between February and May 2019. According to Eltel's particulars of claim, Mashatile met with Eltel's chief executive, Asif Casoojee, at his Sandton home to discuss the party's outstanding debt. In the acknowledgement of debt, Mashatile allegedly confirmed that the ANC owed the company R24.2m, comprising the outstanding capital, interest, and legal costs.
The acknowledgement of debt set out an instalment payment arrangement, with the party undertaking to settle the outstanding amount by October 2022. However, Eltel alleges that the ANC failed to honour the agreement, defaulting on payments and leaving the outstanding balance unpaid. The company claims that the party subsequently continued to engage with it over the debt, making further undertakings to settle the amount in e-mails, WhatsApp messages, and oral discussions.
Eltel argues that these engagements amounted to repeated acknowledgements of liability, which interrupted the running of prescription in terms of the Prescription Act. The company is seeking payment of the full amount, interest at the prescribed rate of 10.5% per annum on the outstanding capital, and legal costs. 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 final status of the judgment and execution process requires confirmation from the court. ANC spokesperson Mahlangi Bhengu-Motsiri did not respond to questions about the matter.
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 is seeking to attach money held in five of the ANC's Nedbank accounts, including those earmarked for elections, fundraising, and salaries.
