On Thursday, the South Gauteng High Court ruled in favour of Western Cape Premier Helen Zille, who was seeking payment from a defamation case. The judgment has subsequently left the ANC Youth League bankrupt.
The matter relates to an incident in 2010 where former leaders Julius Malema, Andile Lili and Floyd Shivambu allegedly referred to Zille as a racist.
“Both parties involved made a private arrangement to settle the matter outside court,” ANCYL secretary general Njabulo Nzuza said in a statement issued on Monday.
However, the former ANCYL leaders failed to pay the legal fees as agreed, Nzuza said.
According to City Press, advocate Hugo de Waal, who represented Zille in the matter, applied for the liquidation order against the league in November. De Waal said in court papers that Zille had transferred her right to recover the costs, totalling R93 218.09 plus interest, to him.
Hein von Lieres, De Waal’s attorney, said the ANCYL sent him proof of payment on the night after the liquidation order was granted.
He was reported as saying that it made no difference as the league had already been liquidated.
However, the ANCYL insists that it has settled its debts.
“We wish to categorically state that the leadership has fulfilled its legal obligation and paid the said debt after communicating with the affected parties,” Nzuza said.
The ANCYL says the matter was only brought to its attention recently.
“The recent legal bill is one of the many issues the ANCYL inherited from the former structure under the leadership of Mr Malema. It should be said that this matter was never handed over as a result of the disbandment of the previous structure of the ANCYL,” Nzuza added. DM