Key Takeaways:
- The African National Congress (ANC) is facing a lawsuit over unpaid campaign services worth over R20 million.
- The Sisonke Consortium and O’Brian Digital, which ran the ANC’s 2024 campaign, have filed an application for a default judgment against the party.
- The ANC has allegedly failed to settle the debt despite several attempts to recover the funds and has missed a court deadline to respond to the lawsuit.
- The consortium is seeking payment of R20 878 220.22, interest, and costs, and the matter has been filed in the High Court in Johannesburg.
- The ANC’s financial struggles and legal pressures are mounting, with the party having recently withdrawn a court application to unfreeze its bank accounts attached over a R85 million debt.
Introduction to the ANC’s Financial Woes
The African National Congress (ANC) is facing mounting legal and financial pressure after allegedly failing to settle more than R20 million for election campaign services. A consortium behind the ANC’s 2024 campaign, consisting of Sisonke Consortium and O’Brian Digital, has turned to the courts after months of failed attempts to recover the outstanding fees. The consortium has filed an application for a default judgment against the party, which has been lodged in the High Court in Johannesburg. This development is the latest in a series of financial struggles faced by the ANC, which has been struggling to pay its debts and has seen its dominance in South African politics wane in recent years.
The Unpaid Campaign Contract
According to court papers, the companies started the proceedings on 14 August, seeking payment from the ANC for work undertaken as part of a large-scale communications contract. The contract, which was reportedly worth R70 million, carried a minimum monthly invoice of R3 million from August 2023 to May 2024. However, the ANC allegedly failed to settle the remaining balance of more than R20 million, despite paying R50 million. The consortium claims that it delivered all contracted services, and a director, Mxolisi Tyawa, has stated in an affidavit that the company has fulfilled its obligations. The matter has dragged on for more than 18 months without any resolution, and the consortium has now sought legal action to recover the debt.
The Legal Action
The application for a default judgment was filed after the ANC failed to file a notice of intention to defend the litigation within the required 10-day period, which lapsed on 9 September. The consortium is seeking payment of R20 878 220.22, interest at 11% from the date of default, costs on scale C, the highest tariff rates for legal fees, and further relief. The ANC’s failure to respond to the lawsuit has triggered the application for a default judgment, which allows the court to grant judgment in favor of the applicants if the respondent does not timeously oppose a claim. The matter is now pending in the High Court, and the outcome is likely to have significant implications for the ANC’s financial situation and its ability to campaign effectively in future elections.
The ANC’s Response
The ANC has yet to respond to the lawsuit, and the party’s spokesperson, Mahlengi Bhengu-Motsiri, had not replied to a request for comment by the time of publishing. The party’s silence on the matter has raised concerns about its ability to manage its finances and fulfill its obligations to its service providers. The ANC’s financial struggles are not limited to this lawsuit, as the party has recently withdrawn a court application to unfreeze its bank accounts attached over a R85 million debt to Ezulweni Investments after reaching a settlement. The party’s financial woes are likely to have a significant impact on its ability to campaign effectively in the upcoming local government elections next year.
The Broader Implications
The fallout between the ANC and the Sisonke Consortium has now escalated into a full-blown legal confrontation, months ahead of the local government elections next year. The matter has significant implications for the ANC’s reputation and its ability to attract and retain service providers. The party’s failure to pay its debts has raised concerns about its financial management and its ability to fulfill its obligations to its stakeholders. The outcome of the lawsuit is likely to have a significant impact on the ANC’s financial situation and its ability to campaign effectively in future elections. As the party prepares for the upcoming local government elections, it will need to address its financial struggles and find a way to restore its reputation and attract new supporters.
