GROUNDUP
ANC liable for over R100-million in 2019 elections banners fiasco – Supreme Court of Appeal ruling
Nine judges in three courts have now ruled that Ezulweni Investments had a binding contract with the ANC.
Nine Judges in three different courts have now ruled that a KwaZulu-Natal marketing company had a binding contract with the ANC and the party owes millions of rands for the supply of election banners ahead of the May 2019 general elections.
Read more in Daily Maverick: Luthuli House assets in crosshairs as firm aims to claw back R102-million from ANC
In the latest ruling, unanimous from the Supreme Court of Appeal (SCA), Judge Trevor Gorven said the party’s version that it had no contract with Ezulweni Investments was “utterly untenable”.
“The denials of the ANC fall into the category of bald, uncreditworthy denials designed to create fictitious disputes of fact,” said the judge.
The court had also refused an application by the ANC to lead further evidence during its appeal in the form of a forensic report, ostensibly done by EMS Forensics into the procurement.
In refusing to consider this, Judge Gorven said the report itself was not put up but only an executive summary and it was unsigned and undated.
It made reference to a Whatsapp message indicating that the company and the ANC’s representatives could “make millions” out of the deal.
Judge Gorven said this had not been presented as evidence when the matter came before the two lower courts. Ezulweni had requested access to the device on which the message was reportedly received but this had been refused. An IT expert had also testified, unchallenged, that WhatsApp messages could be amended, edited or faked.
Previously Ezulweni applied to seize assets worth more than R102-million from the ANC after the party refused to pay it despite two judgments in the company’s favour: one handed down in September 2020, and an appeal heard by a full bench of the Johannesburg high court in June 2022.
In the high court appeal ruling, the three judges said the ANC’s defence was “far-fetched”.
The ANC applied to the SCA for leave to appeal that ruling, but the appeal lapsed.
After Ezulweni obtained the writ of execution, the ANC reinstated the appeal, which was heard early in November and handed down on Friday.
Judge Gorven, writing for the court, dealt with the stance of the ANC that there had been no verbal agreement between the two officials who negotiated the deal with Ezulweni boss Renash Ramdas, and if there was, the officials had no authority to do so.
Judge Gorven said Ramdas, who described himself as a long-standing, loyal member of the ANC, had at a meeting in February 2014 met a Mr Mabaso, the party’s finance manager, and a Mr Nkholise, the personal assistant to Fikile Mbalula, who headed the election campaign.
It was at that meeting that an “oral agreement” was concluded for the design, ordering, printing and placing of the banners.
Ramdas said he was in constant communication with Nkholise and Mabaso. He sent almost daily WhatsApp messages, including photographs of the banners. He sent three invoices for R87-million, R100-million and about R2.4-million.
In response to one, Mabaso and Mkholise sent a document bearing the signature of Mbalula, addressed to Paul Mashatile, informing that “comrade Nkholise” has been assigned as the signatory for bookings and money for the duration of the election campaign.
Another was a photograph of a letter addressed to Mashatile containing the signature of Mbalula which requested assistance with the payment of the first invoice.
Invoices not paid
The invoices were never paid.
The ANC claimed that there had been no agreement, that Ramdas had been told that only Matashile could authorise election material, and that Mbalula’s signature on the document had been “electronic”, inserted by Nkholise.
Judge Gorven said there were “serious difficulties” with the ANC’s version.
He questioned why Ezuleweni would have gone to the expense of ordering materials and then printing the banners and why Ramdas had kept the two officials constantly informed, sending photographs and then invoices, if there was no contract.
In response to one message, Ezulweni put up a response by Mabaso of a clenched fist.
The judge said the ANC had not rebutted this.
“The ANC’s version is not capable of belief in the face of the cascade of communications from Ramdas that were met with deafening silence from the ANC. The only credible response of an entity in its position, if its version were true, would have been to immediately set the record straight so as to prevent Ezulweni proceeding at risk.
“Those responsible for the election were provided with evidence of the work that was being done to produce banners and then install them. How did these officials imagine that this was happening, save on the basis of an agreement with Ezulweni?”
Judge Gorven ruled further that Nkholise did have authority to conclude the agreement as was evidenced by the letter to Mashatile with Mbalula’s signature.
He dismissed the appeal, ordering the ANC to pay the costs.
Ezulweni attorney Shafique Sarlie told GroundUp his client was now owed just under R150-million, including legal costs.
“I have now demanded immediate payment from the ANC, failing which we will execute. This will entail the attachment and sale in execution of assets. If this falls short of what we are owed, we will bring liquidation proceedings against the party.” DM
First published by GroundUp.
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For a political party already sliding on the bones of its arse, one wonders how they will fund the coming election campaign, especially if they have to now dig deep for these damages/costs. A donation from Comrade Vlad? One from Comrade Xi?
Expect a robust defence of Russia, China, Iran, or some other cash-flush dictatorship in the next few days by Fikile Mbalula with the background beat provided by the clanging of begging bowls being waved wildly in every direction!
No worries – it’s only 100 million, I’m sure one or two of our brothers can usucape it from some dodgy source or other.
Thank you, Fanie, for teaching me a new word today 😁🙏
Kry vir julle.
How can we trust a party that doesn’t even know how to run its own financial affairs with running a country? The Anc is used to getting and giving out things for free at the taxpayer’s expense! From their own pocket, forget!
The ANC is now not just morally bankrupt but actually technically bankrupt.
The fact that the ANC would be happy to financially cripple a supplier, and use some dodgy ‘no-contract’ excuse not to pay, tells you all you need to know about them.
,This will be the same with the EFF. They only know and show politicking , no financial management, scientific industries or production abilities of any sort. And this is needed to grow jobs and the country. ANC/EFF have become so used to the taxpayer who fund all their populist promises. No attachment to reality and sustainability. They have become used to corruption money as their funding scource and in this instance it did not materialise
Moral of the story is caveat emptor. Do not deal with an entity like the ANC which is so completely devoid of morals that it can only really be described as a criminal organization in the guise of a political party.
One can only speculate but my guess is that this contract was concluded using standard ANC operating procedure.
That is, you conclude a massively over-priced deal with a friendly supplier who then kicks back 10% or more of the contract value to the person transacting with you.
So, it’s a problem for the ANC when party money is stolen but not so much when it’s public money (the delicious irony being that most ANC party money was probably stolen from the public purse in the first instance)
The other beautiful sub-plot is Mbalula’s involvement. This Cde apparently has ambitions to be our President after next year’s election. This moron has the statisticaly improbable ability to fail at absolutely everything. His rise to the position of SG is in & of itself proof positive that abject stupidity & an unerring ability to make worse everything you apply your factory reject mind too, is jet fuel propulsion to progress within ANC party ranks
I had a good chuckle. You have a way with words, all true of course.
Spot on! I think you’re being far too kind to Mbalula though!
“… apply your factory reject mind …” lol. I must confess too, I was glad when Mbalula was elected SG because of all the people in South Africa – and the ANC in particular – he is the man who would be able to run it into the ground. I mean, can you think of anybody else to do it?
It is a breath of fresh air to read this confirmation that justice is alive and well and has held the ANC to account. Four years for the wheels of Justice to grind away at the verdict and just like Zuma, every attempt to avoid paying what was due.
So – R150 million for the 2019 election campaign and how much for 2025?
It may be somewhat awkward getting the show on the road with no furniture or computers!
Perhaps the ANC will decide to promote some dinners with Squirrel at R1.0 million per head?
Any greedy company foolish enough to get caught up in the ANC’s lying bull manure deserves exactly what it gets. The only way to kill this useless party is to cut off all its resources. That not only includes money and supplies, but a refusal to host any of its numerous conferences, and to stop publishing or broadcasting anything they say. No doubt many readers will think this naive, but there must be limits to the free speech that is denied to most of us anyway.
Two names pop up and immediately huge red warning signs of probable corruption emerge, Paul Mashatile and Fikile Mbalula. One owns a multi million Rand mansion and hobnobs with ANC tenderpreneurs, The other continuously plumbs unchartered depths of political stupidity while accepting paid family holidays in Dubai. Pay back the money gentlement. Neither of you has the intelligence to get away with what amounts to attempted theft.
Liquidity proceedings would be awesome. No party, no votes!
That would be flipping poetic justice
The anc even steal from their own “our people”….what a despicable bunch!
Yet again for the umpteenth time, an insidious attempt at sharp practise by the ANC. Time for Cyril to sell some more buffaloes and fire Fokol Mlabula all in one single breath.
In which dream world does the ANC have 150 million available? I believe much of funds stolen from the taxpayer have landed in their coffers and that resource is becoming better guarded. I wish Ezulweni best of luck to recoup these monies before the next electioneering spending spree
Bwaa haa haa! Yes, doing business with the ANC always ends well…
I declined their offers without thanks – told them to go find some other sucker to try and fleece because I, it turns out, was not hatched under a bush yesterday.
Oh and how the character of the ANC is revealed by their crookery!
But no worry dear, they will no doubt run to big daddy bear Russia to foot the bill, to keep them in power, so their cushy-money-flush deals post-elections, can be implemented..
If they treat their BBEEEE suppliers like this, then read the writing on the wall you blind supporters..
Before the end of apartheid, my business contracted with the ANC to deliver services, which we delivered. They never paid us and it was eventually written off. This unethical, arrogant and entitled behaviour continues. The ANC feel they can take what they want, do what they want and deal with the consequences by bullying or murdering the people that bother them. They are completely devoid of any moral compass and for this reason, they will continue to fail, over and over again. They have become what they fought against and far worse, as they are unable to even deliver basic services, or keep even minor commitments to their people and they steal anything and everything they can lay their hands on.
Thank you, Jennifer, for a sober and thoughtful comment rather than the puerile crowing that often passes for commentary on DM politically related articles.
Ooooh ya the truth is definitely out it’s the end of the marriage that started on the wrong foot hope no one gets killed 🙄🙄 the kind of corruption that happens behind close door /boardrooms
The cruel irony of a governing party that knows neither how to govern nor has the competence to govern, yet has continued in utter ignorance to decimate every aspect of this country for decades, is now being seen for what it is. Far worse than an utterly distasteful joke, the ANC is more a leech on the jugular of every hard-working South African citizen. I see a time coming where the acronym “ANC” will become the euphemism for incompetence, corruption and unbridled derision.
What a fabulous piece of news on a Sunday afternoon!