Sheriff can attach ANC goods, court rules

● Devastating writ of execution issued ● SG Mbalula denies debt, claims fraud

THE Gauteng High Court, Johannesburg, has issued a devastating writ of execution allowing the sheriff of the court to attach goods belonging to the governing party, the ANC, and sell them to pay R102 million to Ezulwini Investments.

Ezulwini Investments supplied the governing party with campaign material for the 2019 general elections, but the company was never paid – until it sought the court’s intervention to recoup the money.

This is a formal, legal document that orders a person or entity to perform or to cease performing a specific action or deed, in this case to get the ANC to honour its obligation to the aggrieved company (Ezulwini Investments).

Ezulwini’s latest application comes as the governing party has battled to pay its staff members for the better part of 2022. The ANC first lost the Ezulwini matter in September 2020, when the Gauteng High Court’s Judge Urmila Bhoola ruled that the ANC must pay more than R102m.

Bhoola ordered the ANC to pay over R100m, including interest at a rate of 15% per annum from May 9, 2019, or alternatively, May 31, 2019, and further alternatively, June 30, 2019, at the rate of 10.25% per annum to the date of payment.

However, the party continued to fail in making these payments to the company, resulting in the latest application.

Speaking to The Star, Ezulwini Investments’ legal representative, Shafique Sarlie, said they had resorted to the writ application in a bid to get the party to honour the previous court ruling.

“We applied for a writ after the Judgment Debtor’s special leave to appeal to the Supreme Court of Appeal had automatically lapsed on account of its failure to file its Heads of Argument and Practice Note within six weeks of the filing of the record, as prescribed by Rule 10(2A) (a) of the Rules of the Supreme Court of Appeal.

“The ANC had failed to reinstate this appeal and filed heads of arguments. In terms of law, we can proceed to attach the assets of the ANC while the court continues to hear this matter, and in turn the ANC also has a right to ask the court in Johannesburg, or wherever they so choose, to argue their case. At the moment we have not decided to attach the assets.”

In a writ of execution dated May 26, the sheriff is now authorised to seize assets of the governing party.

The writ itself reads: “You are hereby directed to attach and take into execution the movable goods of the Execution Debtor African National Congress at Chief Albert Luthuli House, 54 Sauer Street, Johannesburg, and of the same to cause to be realised by public auction R102 465 000-00 together with interest at the following rates.”

Late yesterday, ANC secretary-general Fikile Mbalula denied claims that the party owed R102m to the KwaZulu-Natal branding company, despite the court-issued sheriff’s order attaching the party’s assets to recoup the funds.

He said the party intended to open a criminal case to challenge this application. Mbalula was speaking during a media briefing following the party’s national working committee visit to the North West province this past weekend.

“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 said.

He said the party did not remember signing an agreement or tender worth R102m to the company.

Meanwhile, former ANC secretary-general Ace Magashule is facing expulsion from the party.

Magashule has been found guilty by the party’s national disciplinary hearing following the May 2021 attempt to suspend President Cyril Ramaphosa as party leader.

Magashule’s attempt at the time followed his own suspension by the party over his refusal to step aside.

At the time, Magashule’s posture was that Ramaphosa, who was accused of corruption in relation to his CR17 campaign, and where he asked the court to seal his bank statements, should also have been called upon to step aside.

Magashule has argued that Eastern Cape Premier Oscar Mabuyane, who was accused and found wanting by the public protector for illegally benefiting from the funeral of struggle stalwart Winnie Madikizela-Mandela, was being protected by Ramaphosa’s faction, which was using state machinery to fight political battles.

Mbalula said the ANC national disciplinary committee (NDC) had given Magashule seven days to respond to why he shouldn’t be expelled from the party.