Johannesburg - The ANC Youth League does not have the money it needs to settle a R15 million lawsuit against it, and the ANC is not going to bail it out.
This was made clear by ANC secretary-general Gwede Mantashe in papers filed in the Johannesburg High Court on Wednesday morning, in response to an application for the liquidation of the league.
The ANC is opposing the application, saying the ANCYL is chaotic and has no assets.
The application is being brought by Z2 Presentations cc, which trades as University Events Management.
“The application has its origin from a judgment in the Free State High Court against the ANCYL in 2008, on which the current outstanding amount, interest included, is over R15m,” said attorney Marius van Rensburg, acting for University Events Management.
“The application is opposed and will be argued in court.”
In an affidavit, businessman Willem Adendorff, who owns University Events Management, said his business was owed R12.8m.
In October 2008 he obtained a default judgment against the ANCYL for R7.7m plus interest.
This was for arranging accommodation and catering for the ANCYL national conference in Bloemfontein in 2008.
The sheriff twice attempted to seize ANCYL assets to pay off the debt, but there were no assets. Attempts to negotiate payment of the debt with the ANCYL and the ANC failed.
Adendorff said the ANCYL and the ANC had “scant” regard for the court ruling on the debt.
In the circumstances, he said, the ANCYL was commercially insolvent as it couldn’t pay its debts, so it should be liquidated.
In opposing papers, Mantashe said the ANC had no obligation to cover the expenses of the ANCYL.
“It is a matter of record that the affairs of the respondent (ANCYL) were shambolic and chaotic,” said Mantashe.
The appointment of a liquidator or a trustee would not help creditors because the league had no realisable assets and no money in the bank.
The ANCYL has not filed any answering affidavits.
The Star