Regiments Capital’s R50 Million: The Quest to Recoup ANC’s 'Disguised Donation'

In an unfolding drama steeped in South Africa’s endemic issues of State Capture and financial mismanagement, liquidators of the now-defunct Regiments Capital are seeking restitution from the African National Congress (ANC) and the company's former executives. As part of the extensive legal fallout, the liquidators have approached the courts to reclaim R50 million paid to the ANC in what is labeled a "disguised donation" aiming to defraud creditors.

Given the ANC's historical gravitas and political dominance, the allegation of reckless financial conduct holds significant implications both legally and electorally. The legal pursuit by liquidators Jaco Venter and Kagiso Dinaka has brought to light the opaque financial maneuvers characterizing the operations of both the ANC and Regiments Capital. Specifically, the incriminating fund flow in 2016, involving attorney Naheem Raheman's trust account instructing payments to stave off the ANC’s electoral debts, now serves as the crux of the legal battle.

The Gauteng Division of the High Court in Pretoria has become the arena for this financial gladiatorship. Here, the liquidators have outlined the alleged misconduct involving the sale of shares related to a coveted property near the Sandton Gautrain station, once heralded as a boon for a Regiments-led consortium. The dealings with the property sale, which included entities such as Cedar Park Properties 39 and the Kgoro Consortium, have since been a nucleus of legal scrutiny.

The litigation's backdrop is stark; the ANC's financial entanglements have been laid bare with recent scrambles to fend off liquidation, including a settlement with Ezulweni Investments over a towering R100-million campaign debt. Regiments Capital's own demise compounds the drama, with a liquidation back in September 2020, followed by the Constitutional Court's closure on the matter in August 2023.

At the heart of the case is the claim that the payment to the ANC was performed while Regiments faced liabilities vastly overshadowing their assets, a situation painting the picture of a firm struggling amid South Africa’s turbulent financial waters, with an alleged liability excess touching nearly R2-billion. The liquidation's summons extends beyond the political party to former Regiments’ trustees Niven Pillay and Litha Nyhonyha, implying a direct line to the company's upper echelon.

The uncovering of this transaction adds flesh to the bones of the broader State Capture saga, recalling a time saturated with public sector probes into corruption and the manipulation of enterprises—a narrative intricately intertwined with former president Jacob Zuma, the Gupta family, and an array of political and business figures. As Regiments Capital's former prowess in the financial sector cracked under the State Capture revelations, Litany Nyhonyha and Niven Pillay found themselves ensnared in litigation.

While the ANC has not released any comments regarding the allegations, the court battle promises to probe deep into the marrow of South Africa’s issues related to corruption and political integrity. As South Africa watches and awaits the ANC's response to these serious accusations, the legal process continues, potentially setting precedents for how political finances are scrutinized, reported, and managed in the future.