ANC Bank Accounts and Assets Face Seizure After Failed Appeal

The African National Congress (ANC), South Africa's ruling party, is facing a financial and operational crisis after the Supreme Court of Appeal (SCA) in Bloemfontein recently rejected its application to appeal the attachment of party assets worth R150 million. This decision could result in the seizure of the ANC’s assets, including its Luthuli House headquarters.

The SCA's full bench of judges dismissed the ANC’s application with costs, indicating that the party's attempts to submit further evidence after the initial appeal lapsed were not accepted. This legal stumble comes as a blow to the ANC, which owes KwaZulu-Natal marketing company Ezulweni Investments for services rendered during the 2019 general elections campaign.

Ezulweni Investments had not received payment for supplying the ANC with campaign material and sought the intervention of the courts to recover the R150 million owed. The SCA's refusal to reinstate the ANC's appeal or accept additional evidence has paved the way for Ezulweni to proceed with the execution of the debt, beginning with the attachment of the ANC’s bank accounts.

A letter from advocate Sharfique Sarlie, representing Ezulweni, to the ANC’s legal counsel at AMMM Incorporated, has called for immediate compliance with the appeal order, intimating that failure to satisfy the judgment debt by the stipulated deadline will result in execution proceedings. The writ of execution has been reissued, with the sheriff prepared to initiate the attachment process.

Previously, Ezulweni had succeeded in securing a court order allowing for the auction of removable goods from the ANC's headquarters to cover a portion of the debt, which has since accrue interest, making the outstanding amount R150 million.

The ANC’s legal representative, advocate Ephraim Malapane of AMMM Incorporated, acknowledged his awareness of the judgment and stated that he is awaiting further instructions from ANC leadership, which may include satisfying the judgment amount or potentially pursuing an appeal to the Constitutional Court.

The financial uncertainty this poses for the ANC is severe. Losing its headquarters and having its accounts frozen could severely impact the party's operational capacity, especially with the local elections looming. The situation also exposes the financial management challenges within the party and highlights the repercussions of unpaid debts.

As of this report’s publication, the ANC had not provided an official comment on the matter, and it remains to be seen what steps the party will take next in response to the SCA’s ruling and the impending asset seizure.