Ezulweni Investments said that ANC “stalwarts and loyalists” are involved in ongoing discussions to prevent the company from initiating liquidation proceedings over a R150 million debt related to election materials.
The company has given the ANC until Tuesday to settle the debt or come up with a payment plan.
Earlier this month, the Supreme Court of Appeal (SCA) upheld a decision of the Gauteng High Court which ruled against the ANC in a dispute with KwaZulu-Natal-based Ezulweni Investments, which had provided the party with banners and campaign materials for the 2019 elections.
The SCA ordered that the ANC pay the printing and marketing company over R100m for the production of banners during the 2019 elections with the figure, including interest, now sitting at R150m.
The ANC said it would challenge the ruling in the Constitutional Court.
Ezulweni lawyer Shafique Sarlie on Monday said that they were still speaking to stalwarts and loyalists of the party “concerned about what is happening”.
“We are waiting for the party to respond to the deadline and as yet there is nothing. We will wait and see what we have to do,” Sarlie said.
“Their representatives (ANC stalwarts) have made some proposals and we will have to look at whether this is feasible and see how it goes,” said Sarlie.
The company’s CEO, Renash Ramdas, last week issued a statement saying that while they had extended the deadline for the ANC to pay to Tuesday, they were also preparing an opposing affidavit to challenge the party’s application for leave to appeal.
“Ezulweni will file its opposing affidavit, and the opposing papers will speak for themselves,” said Ramdas.
He said the temporary halt on liquidation proceedings was a gesture acknowledging the sacrifices made by the party in liberating the country.
“This is to afford concerned loyalists of the ruling party some time and opportunity to resolve the dispute or take cession of the debt, putting on hold the intention to proceed with the liquidation proceedings,” he said.
“In telephonic engagements between Ezulweni’s attorney Shafique Sarlie and the ANC’s attorney Ephraim Malapane before the deadline, Sarlie was assured that the ANC – specifically the secretary-general – was in discussion with Malapane. Attorneys expected timely instructions from their client, which would then be communicated to Ezulweni’s attorneys,” said Ramdas.
He said loyalists of the ANC had reached out to Ezulweni to resolve the matter.
“They have described the manner in which the secretary-general delegated the task of dealing with this matter as ‘insane and irrational’. They have beseeched Ezulweni not to commence liquidation proceedings against the ANC, fearing the further reputational damage it will do to the ANC and the dire implications such proceedings will have for the ruling party.”
ANC secretary-general Fikile Mbalula last week said the party tried to present a forensic report that it commissioned to the SCA “but this aspect of the appeal was rejected”.
He said the forensic investigation, which would now be presented in the appeal to the Constitutional Court, “revealed criminality and corruption between Ezulweni and the unauthorised staff members”.
“There is no evidence to suggest that Ezulweni was responsible for erecting posters and banners for the ANC during this period. If they did, it was under fraudulent pretences. We hope the Constitutional Court will consider these facts,” Mbalula had said.
The Mercury