Johannesburg – The ANC’s ability to contest the upcoming local government election is up in the air with the ruling party’s financial woes mounting by the day.
Sunday World can reveal that Ipsos, a global leader in market research, has pulled a plug on the ANC over non-payment of R5.8-million debt.
Ipsos has been conducting surveys for the ruling party ahead of its local government and general elections.
The party is used to amassing a significant war chest heading into polls.
The organisation used the surveys – which revealed its weaknesses and strengths, and the attitude of the voters towards it – to draft its election manifestos.
Ipsos has obtained combined summons against the ANC in the Johannesburg High Court on Wednesday after it failed to pay for the services rendered.
In the papers, in which Ipsos is also praying for judgment against the ANC, its lawyers, Harkoo, Brijala & Reddy Inc, said the party, which was represented by its treasurer-general Paul Mashatile, among others, entered into a contractual agreement with the company to carry out a variety of market research tasks on January 2019.
The lawyers further said the ANC was, in accordance with the agreement, supposed to have paid Ipsos within 30 days of receipt of invoices and statements of account for the work completed.
They said the company had submitted the invoices to the ANC, since February that year, on monthly basis and alternatively regularly for each separate portion of the work down.
Ipsos alleges that the ANC made a commitment to pay R350 000 in monthly instalments from January this year until January next to put the account up to date. Despite its promise, said the lawyers, the ANC failed to settle the arrears.
“The balance owing and immediately due is accordingly R5 815 425.30. Wherefore the plaintiff prays for judgment against the defendant for payment of the sum of R5 815 425.30,” read the papers.
The ANC has been drowning in debt amid a cash crunch that has seen it consistently failing to pay its employees on time.
The party’s deputy secretary- general Jessie Duarte this week wrote to disgruntled staff pleading with them to be more flexible to allow elections staff to assist with the process of candidate selection.
The elections, which are slated for October, if the Constitutional Court does not accede to the Independent Electoral Commission’s request that they be postponed to February, are expected to be hotly contested.
The governing party lost control of key metros, including Nelson Mandela Bay, Johannesburg and Tshwane as coalitions made up of opposition parties ate into its support.
The ANC’s deteriorating financial position is a far cry from the 2016 local government election where its then head of campaigns Nomvula Mokonyane said the party spent more than R1-billion on campaigning for the municipal elections. Mokonyane, at the time, said costs included holding rallies, paying volunteers, buying T-shirts and preparing candidate lists, among other expenses.
The party also had a fallout with Ezulweni Investments over a R102-million debt.
Ezulweni produced thousands of ANC’s electioneering banners in the 2019 general elections. The party is also said to owe the taxman more than R15-million.
The ANC finances have been severely hampered by the Zondo Commission, where several party donors were hauled before the commission to account for their proximity to the party and their source of wealth.
The recently promulgated Political Party Funding Act, which introduced strict regulatory framework, has not helped matters.
The act includes limits for the source, size and use of donated funds, and requires political parties to disclose all donations “above R100 000, whether in cash, kind (e.g transport, catering) or both to the Independent Electoral Officer.”
The party has also been unable to pay staff salaries on time. As a result, employees have reportedly also been refusing to work overtime.
The ANC had not responded to detailed questions at the time of going to press.
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