The legal wrangle between the co-governing ANC and its creditor, Ezulweni Investments – unfolding ahead of the crucial 2024 general election has reached a point where the party’s iconic headquarters, Luthuli House, and potentially its provincial offices, could be attached and auctioned off to offset the debt.
Sunday World sat down with the lawyer representing Ezulweni Investments shortly after the sheriff was dispatched to Luthuli House on Friday to make an inventory of the contents.
The move follows Ezulweni’s victory in court, which granted them a writ to execute against the ANC after failed promises and a breached settlement agreement.
“We proceeded to attach the contents of Luthuli House. That is the inventory the sheriff made. And we are also attaching the ANC bank account,” Ezulweni lawyer, Shafique Sarlie of Sarlie and Associates confirmed, as the process to recover the outstanding sum moves into a more visible, high-stakes territory.
Asked by the reporter about the next steps should the sale of movable assets fall short of the massive R85-million debt, the lawyer was unequivocal.
“You have to exhaust the movables, you see? And then, when you move to attach property that is immovable, then you have to bring an application to court to declare the property executable. Because obviously, we haven’t exhausted all movables, which include furniture and accounts, of course.”
The inventory compiled by the sheriff puts the value of the ANC’s furniture and other moveables at Luthuli House at “around R140 000”.
It’s a sum that barely scratches the surface of the party’s debt.
“That is just the content. Whatever the sheriff has looked up. Our writ is for R85.5-million. The inventory that the sheriff shows, I think, is under R140 000,” the lawyer explained. “That’s minuscule compared to the amount.”
Pressed on what happens when movable assets fail to satisfy the writ, the lawyer outlined the legal route available.
“So, you say, ‘What is the process to now move to the immovable?’ So, you have to demonstrate to the court that you’ve exhausted the movables to proceed against immovables.
“You must first try to attach both the furniture and the bank account. For example, say we get R5-million from the bank. So, we’ll say to the court system, ‘We’ve only yielded R5-million plus R140 000 or whatever; we want you to declare the property executable.’
“But the other option that we have is liquidation. So, those are the options that we can exercise.”
The looming threat of Luthuli House – the nerve centre of ANC’s operations being attached is no longer theoretical.
The lawyer confirmed that if the party’s bank accounts, together with the contents of the headquarters, fail to satisfy the debt, Ezulweni will move to have the property attached and sold.
“If need be, we will bring an application to court to declare the property executable,” he reiterated.
The ANC’s provincial and regional offices are not safe either.
“Those assets belong to the ANC. So, we can go there as well. And we will. But remember, we’ve got a writ, which is basically executable at any event where we find out.”
The lawyer expressed hope that the gravity of the current action would force the party’s hand.
“I believe that there is capacity to pay. Hopefully, this will have caught their attention, and they can make payment ASAP.”
But the frustration is clear.
“They communicated that the matter is settled. And after a while back, it was the settlement that incorporated the judgment debt. And then the settlement actually stipulated terms of payment, and from inception, they breached that.
“But it’s shocking. But anyway, they reneged, even in their further undertaking, on their promises to pay. And they just went on and on. Then obviously the clients have got tired.”
The heart of the dispute lies in unpaid invoices for software and election campaign services delivered by Ezulweni, including critical work for the May 2024 elections.
“Over and above the existing debt, there was new debt created on the back of the settlement agreement. Yeah, in respect for software, the work that they wanted done urgently. Yes, last year,” the lawyer said.
The total debt, including the judgment and new work, stands at “R190-million”, of which “they paid about R68-million on the contract and the settlement. Okay, that’s what brings us to about R86-million right now. And then roughly R37-million plus that we still have to recover.”
