Illustrative image: Luthuli House. (Photo: Luba Lesolle / Gallo Images) | A man carries a stack of chairs. (Photo: Felix Dlangamandla / Netwerk24 -image altered with permission using Gemini Flash Image 2.5) | Melting ANC logo / (Image: Wikimedia) 
“The freezing of these bank accounts has created a situation of complete operational paralysis,” said the ANC’s treasurer-general, Gwen Ramokgopa, in an affidavit opposing a recent court order attaching its bank accounts.
“The ANC is unable to pay the salaries of its hundreds of employees across all nine provinces … pay its creditors and service providers for essential services … fund its ongoing political, social and community programmes, provide the necessary support for its public representatives or conduct any meaningful preparations for upcoming by-elections and the forthcoming 2026 local government elections,” she laid out.
Ramokgopa described this situation as “existential” for the ANC. The party owes Ezulweni Investments R85-million on an old debt for printing posters, banners and other election paraphernalia.
Ezulweni is a medium-sized Durban-based company owned by Renash Ramdas, who is a loyal party cadre. Ramdas agreed to a settlement agreement with the party in December 2023, and the ANC gave it extra work for the 2024 election.
However, court papers reveal that the party experienced financial difficulties and repeatedly failed to make the agreed-upon payments. There are many pages of WhatsApp messages from Ramdas, asking for his money from an ANC finance official, as noted in court documents.
Party officials have no equipment and little furniture after the sheriff attached goods worth R140,000 at the party's Luthuli House headquarters early in October. The ANC also now risks an unprecedented insolvency application, as reported here.
Ramokgopa said the failure to pay staff caused anxiety, while the party’s reputation was being battered.
/file/dailymaverick/wp-content/uploads/2022/09/fdcosatu1.jpg "Gwen Ramokgopa. (Photo: Felix Dlangamandla / Daily Maverick)")
The ANC’s lawyers will argue that the settlement agreement, which included an additional order for goods “novated” or replacing the old contract with the new, means legal proceedings need to be restarted.
Attorney Shafique Sarlie obtained the attachment order against the ANC based on a previous judgment stayed by the settlement.
“Ezulweni’s unlawful actions have precipitated an immediate and existential crisis for the ANC, threatening its very ability to operate as a national political organisation and to fulfil its role within South Africa’s constitutional democracy,” said Ramokgopa.
The ANC says a forensic investigation found that Ezulweni charged VAT on the party’s orders before it registered as a VAT vendor with SARS in August 2019. The company says that its application for registration had been lodged with the revenue authority.
Thando Maeko in Business Day reported this week that both ActionSA and the DA want the Electoral Commission of SA to investigate the ANC settlement agreement, as it may amount to an undeclared political donation. DM