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We don't owe R102m, this is fraud, says Fikile Mbalula on ANC asset attachment order

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We don't owe R102m, this is fraud, says Fikile Mbalula on ANC asset attachment order

ANC secretary-general Fikile Mbalula
ANC secretary-general Fikile Mbalula

31st May 2023

By: News24Wire

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African National Congress (ANC) secretary-general Fikile Mbalula says the ANC does not owe R102-million to a KwaZulu-Natal branding company for election material despite a court-issued sheriff's order attaching the party's assets to recoup the funds. 

He said the ANC planned to open a criminal case. 

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Mbalula, speaking at a media briefing at Luthuli House on Wednesday, added he had not seen the writ execution order issued against the ANC. 

The writ order, seen by News24, was issued on 23 May by the Gauteng High Court in Johannesburg and ordered the "execution of movable goods of the debtor, African National Congress, at Luthuli House to cause the realisation of by public auction of R102 465 000 together with the interests of 10.25% per annum from 9 May 2019 to 31 August 2020". 

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The case involves Ezulweni Investments, which claims it is owed more than R100-million by the ANC for the supply of electioneering material ahead of the 2019 elections. 

The company said it had an agreement with ANC staff members.

The case was heard by the High Court on two occasions, in 2020 and 2022, when it ruled in Ezulweni's favour. 

During court proceedings, the ANC argued it did not have an agreement with the company and staffers involved in the deal had done so without the party's knowledge. 

But Ezulweni produced text messages during the court proceedings, showing some agreement. 

The ANC intends to appeal the judgment at the Supreme Court of Appeal, but it still needs to file appeal papers, and the deadline has lapsed.

Mbalula said, when probed by the media on the writ order, the ANC still believed it never had an agreement with Ezulweni and the whole case was an example of fraud. 

He added the party had not been notified about the writ order attaching its assets.

Mbalula said the ANC was so broke it did not make sense why anyone could believe it would be capable of signing an electioneering deal worth R100-million. 

He added if the party had agreed to spend so much toward an election, its posters and branding would have shown this, but it had not. 

Mbalula said the ANC was concerned it had lost court cases that gave an impression it was guilty, adding a criminal case would be opened.

"We have not received this writ attachment that is circulating. You can only comment on something you have received. Should we receive it, we will challenge that.

"This is fraud to us, it's a fraudulent matter, and we will open a case with law enforcement, and that this matter should be investigated, we have taken steps dealing with the matter privately," he added. 

"How could we have given one person a campaign of R102-million for elections for things we have not seen?

"Our campaign should have been 'wow' if we spent R102-million on billboards or anything of that sought. We are struggling, and where would we get R102-million?"

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