ANC Headquarters at Risk as Ezulweni Investments Moves to Recover Massive Debt .
Johannesburg – The legal dispute between the African National Congress (ANC) and its creditor, Ezulweni Investments, has reached a critical stage, with the party’s iconic headquarters, Luthuli House, and potentially its provincial offices at risk of attachment and sale to offset a massive debt.
Sunday World spoke to Shafique Sarlie, the lawyer representing Ezulweni Investments, shortly after a sheriff was dispatched to Luthuli House last Friday to compile an inventory of its contents. The move follows a court victory for Ezulweni, which secured 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,” Sarlie confirmed, signalling that the process to recover the outstanding sum has now moved into highly visible territory.
The dispute centres on unpaid invoices for software and election campaign services provided by Ezulweni, including critical work for the upcoming May 2024 general 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,” Sarlie said.
The total debt, including both the judgment and new work, stands at approximately R190-million. According to Sarlie, the ANC has already paid about R68-million on the contract and settlement, leaving around R86-million still outstanding, with roughly R37-million more to recover.
Despite the impressive status of Luthuli House, the inventory of its movable assets reveals that furniture and other contents are valued at just under R140 000, a sum dwarfed by the magnitude of the 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,” Sarlie said. “That’s minuscule compared to the amount.”
Pressed on what happens if the sale of movable assets falls short of satisfying the writ, Sarlie outlined the legal procedure. “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.”
Sarlie confirmed that if the party’s bank accounts and headquarters contents fail to satisfy the debt, Ezulweni will move to attach and sell the property. “If need be, we will bring an application to court to declare the property executable,” he said.
The lawyer also warned that the ANC’s provincial and regional offices are not immune from action. “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.”
Sarlie expressed hope that the high-stakes legal action would prompt the ANC to settle the debt promptly. “I believe that there is capacity to pay. Hopefully, this will have caught their attention, and they can make payment ASAP.”
Frustration with the ANC’s handling of the matter is evident. “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 looming threat of Luthuli House – the nerve centre of ANC operations – being attached is no longer theoretical. Sarlie emphasised that the process is methodical, beginning with movable assets and bank accounts, before potentially moving to immovable property if necessary.
Asked about next steps, he reiterated, “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.”
With the general elections approaching, the legal wrangle has intensified, placing a national spotlight on the ANC’s financial management and raising questions about how the party intends to resolve the multi-million-rand debt.
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