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.
The debt, now R36.4m excluding interest and legal costs, was formally acknowledged by then ANC treasurer-general Paul Mashatile in 2022. Eltel's particulars of claim state that Mashatile met with the company's chief executive, Asif Casoojee, at his Sandton home to discuss the party's outstanding debt. An acknowledgement of debt signed by Mashatile on March 16, 2022, confirmed the ANC owed Eltel R24.2m.
Eltel claims that despite repeated undertakings by the ANC to settle the debt, the party failed to honour the agreement, defaulting on payments and leaving the outstanding balance unpaid. The company alleges that the ANC continued to engage with it over the debt, making further undertakings to settle the amount in e-mails, WhatsApp messages, and oral discussions.
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. A draft default judgment order filed on September 25 provides for the ANC to pay R36.4m, together with R582,531 in interest and legal costs of R2.9m.
The attempt to attach the accounts 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 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 highlights concerns about the ANC's financial management and its ability to meet its financial obligations.
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.
