Court orders ANC to pay R102 million: Party loses legal battle

Court orders ANC to pay R102 million: Party loses legal battle

- The ANC has lost its court bid to avoid forking over R102 million to a company involved in promoting them ahead of the elections

- The marketing company had been forced to take action after the ruling party left them high and dry

- Now, the ANC has been legally compelled to settle the steep bill for banners

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The ANC has failed to convince a court that it has no obligation to pay a staggering R102 million debt to a service provided.

A marketing agency had not only produced but installed thousands of banners promoting the party ahead of the elections.

The South Gauteng High Court has now ruled in favour of Ezulweni Investments, finding that the company had provided enough evidence to prove an oral agreement with the ANC.

The company had produced 30 000 banners as a part of the ANC's campaign to boost support ahead of the 2019 national elections.

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Court orders ANC to pay R102 million: Party loses legal battle
The ANC has lost its legal bid to avoid paying the bill. Image: GCIS/ Flickr
Source: UGC

The work had been done in all provinces with the exception of the Western Cape just a few days before voting kicked off.

The company charged around R3 000 for each banner which included removal after the elections had wrapped up.

However, the ANC had refused to pay the company after the elections were over with its chief executive revealing that letters penned to both Cyril Ramaphosa and Ace Magashule had gone unanswered.

The ANC, defending itself in the matter, claimed that it had no obligation to pay the company. The ruling party insisted that the deal had not been binding because it had not been authorised by it's treasurer-general.

The company had gone on to prove that ANC officials based at the party's Luthuli House headquarters had given the green light for the work to be done.

The company had proven meetings and communication between its CEO and the ANC officials discussing the progress of the project.

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The cost of the project had been R87 million with the ANC ordered to pay over R102 million plus interest, reports IOL.

Earlier, reported that the ANC had been facing immense financial issues for some time already.

The party had failed to pay salaries for employees on multiple occasions with the most recent incident reported last month.

The ANC has remained more or less silent on the situation which is believed to be caused by a reduced number of supporters willing to fund its operations.

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