The African National Congress (ANC) has reached an out-of-court settlement with Ezulweni Investments, resolving an R102 million debt linked to a 2019 marketing contract.
ANC and Ezulweni settle R02 million debt
This settlement brings an end to a legal dispute that posed significant financial risks to the party, including the potential seizure of its assets.
ANC spokesperson Mahlengi Bhengu confirmed the settlement, highlighting a critical moment for the party’s financial health.
“The impasse has been resolved in the best interests of both parties,” he said.
The roots of the dispute lie in the 2019 elections, with Ezulweni Investments providing election banners and posters for the ANC.
However, the ANC did not settle the over R100 million bill for these services, leading to a lengthy legal conflict.
Ezulweni Investments threatened liquidation proceedings against the ANC if the debt was not addressed. Prior to the settlement, the ANC faced three unfavourable judgments regarding this matter.
The ANC and the KwaZulu-Natal-based marketing company managed to resolve the dispute out of court.
Both parties have acknowledged the settlement as mutually beneficial. Just before finalising the settlement, the sheriff of the Gauteng High Court was prevented from entering Albert Luthuli House to seize assets.
Throughout the legal proceedings, the ANC contested the debt, which had increased to over R150 million with interest.
Despite suffering defeats in the Gauteng High Court in 2020 and 2022, and a subsequent loss in the Supreme Court of Appeal, the ANC consistently argued that it had no formal agreement with Ezulweni and that the deal was conducted without official approval.