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GOVERNED BY DEBT

Cash-strapped ANC considers selling off assets to pay off R500m in arrears

Cash-strapped ANC considers selling off assets to pay off R500m in arrears
ANC Treasurer General Paul Mashatile. (Photo: Gallo Images / Beeld / Deaan Vivier)

The draft financial report delivered by ANC Treasurer General Paul Mashatile to the NEC at the weekend indicates the dire state of the governing party’s finances.

A report on the state of the ANC’s finances revealing that the party is half a billion rand in debt was handed to the National Executive Committee (NEC) on Saturday, 12 November, at its gathering at the Nasrec Expo Centre in Soweto, according to an NEC source.

The party is now looking at ways to ensure this debt is paid off and that staff salaries and benefits are paid in full.

Read more in Daily Maverick: “ANC Integrity Commission – Phala Phala has deepened divisions and Ramaphosa must take NEC and country into his confidence

ANC Treasurer General Paul Mashatile said the party would be looking at leveraging its investments to pay off its debts, NEC sources told Daily Maverick. The party is said to have R5-billion worth of assets — some in London and Zambia — which it would be looking to sell off. 

Mashatile also mentioned the possibility of reducing staff and encouraging some employees to withdraw their packages.

A bone of contention is salaries paid to NEC members based at Luthuli House on a full-time basis. An NEC member said these members were paid the equivalent of a deputy minister, bloating the party’s salary bill.

Visit Daily Maverick’s home page for more news, analysis and investigations

The governing party has been unable to pay salaries on time for the past year, while the provident fund, unemployment insurance fund and medical aid contributions have not been paid since 2018.

In September,  City Press reported that the governing party had failed to pay the landlords of its merchandise store in Gandhi Square, Johannesburg. The ANC was reported to be in breach of its lease agreement, which has accumulated monthly rentals of more than R3-million.

Read more in Daily Maverick: “Ramaphosa reveals to ANC NEC how much money was stashed at his Phala Phala farm” 

In August, the Financial Sector Conduct Authority (FSCA) compelled the ANC to settle the estimated R85-million in outstanding and accumulated debt it owed its workers through a provident fund scheme. 

The FSCA signed an enforceable undertaking with the ANC staff provident fund, requiring the party to pay R10-million into the fund each month until its accumulated contribution arrears were paid in full.

The party has tried lobbying for more funding from the government and launched a crowdfunding campaign with little success. 

The ANC NEC gathering was held to discuss the party’s state of readiness for the national conference where new leadership will be elected. The Electoral Committee has given a presentation on the work it has done so far.

Cyril Ramaphosa presented his political report, and Gwen Ramokgopa, the coordinator in the secretary-general’s office, presented the organisational report. DM

Gallery

Comments - Please in order to comment.

  • Rg Bolleurs says:

    Have you checked the couches at luthuli House?

  • Brian Cotter says:

    “The party is said to have R5-billion worth of assets — some in London and Zambia” I would transfer that out of London because USA may put pressure if any of that money is corruption money, bribes etcetera. Zondo report?

  • Tony Reilly says:

    They cannot even manage their own affairs, why do we allow them to run the country ?…..I thought it was a criminal offence to deduct and not pay over UIF and PAYE ? One law for the ANC and another for the rest ?

  • Hermann Funk says:

    The sooner this party ends up on the dung heap of history, the better.

  • John Smythe says:

    The ANC is a circus with Squrrel as its ringmaster. It still amazes me that the clowns who continously vote for them can’t see that the once mighty tent has collapsed and is hobbling along with even the side-show promises it can’t keep.

  • Lobbied government for funding!!! Illegal activity? What about the other parties then? These folk have learnt well from all their leaders since 1994.

  • Chris 123 says:

    And how would the ANC have any assets, apart from the likes of 50% in Hitachi which was a corrupt relationship that cost SA billions.

  • Manfred Hasewinkel says:

    It is probable that cadres have looted their beloved movement blind with every windfall. Are they even capable of keeping an asset register? R5bn in assets are unlikely. In particular properties require maintenance and payment of rates, etc and the picture is likely to be worse than at DIRCO. What does an ANC treasurer do, or is it just a ceremonial position?

  • Patterson Alan John says:

    Why did it take the Financial Sector Conduct Authority four years to issue the directive to pay the overdue contributions?
    Ooops ANC, the goose stopped laying the golden eggs.
    No wonder every SOE is in deep strife if the NEC are the mentors of how to run a business.

  • Lesley Young says:

    Maybe they should be declared bankrupt by creditors and placed under administration by suitable qualified forensic accountants? How does the Constitution deal with a bankrupt political party, and how come they own massive assets abroad? Gifts? Purchases? Reasons?

  • Andrew McWalter says:

    Just sitting here on the sidelines, enjoying the spectacle of a haughty ANC implode into worthless scrap. Which, by the way, would be an appropriate tombstone to the catastrophe of their existence.

  • Dellarose Bassa says:

    How have these “employees” been accepting this situation for so long? Salaries, Med Aid & Provident Fund contributions not paid? How have they been sustaining themselves & their families? Do they have other sources of income? It cannot be that their loyalty to the ANC is such that they will suffer such deprivation as working without pay for so long. Unless being at Luthuli House is so lucrative in terms of influence-peddling, connections, tender information, etc. that a salary & Med Aid are just sideline add-ons? The mind boggles! And why has the ANC as the Employer of ANC Inc. not been declared bankrupt? I guess because they have R5 billion in “assets”. Has SARS been collecting the requisite taxes from these revenue-generating assets? Edward Kieswetter & his crew at SARS should train their sights on these dodgy organisations instead of going after honest, tax-paying citizens who have been prudent all their working lives to acquire assets honestly.
    All the information about the endemic corruption in this once “glorious movement” is in the public domain after all.

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