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Johannesburg - The ANCYL declined to comment on Friday on a report that it had been provisionally liquidated by the High Court in Johannesburg.
“We only heard about it on Monday. We have no comment at the moment,” said African National Congress Youth League spokesman Bandile Masuku.
Asked to confirm the court's order, he said: “I have seen it in the media, but I have not seen the (court) papers myself.”
The BDlive website reported on Friday that the ruling was made by Acting Judge Tony Mundell on Monday.
In his judgment Mundell reportedly said interested parties which could show cause why the order should not be made final had until January 27 to make their views known.
“I cannot close my eyes to the proud role that the respondent (the ANCYL) has played in the political and cultural life of this country, both historically and currently,” Mundell was quoted as saying.
“Its close association with the ANC and the interest that the governing party has in the proper functioning and administration of the ANCYL are also issues that weighed with me.
“I have, in these circumstances, come to the conclusion that justice will be more appropriately served by the grant of a provisional winding-up order, which will entitle interested parties to advance their views, if any, on the return day.”
The ANCYL has been accused of failing to pay Z2 Presentations CC, trading as University Events Management (UEM), nearly R15
million for its national congress in the Free State in 2008, when its since expelled leader Julius Malema was elected.
The sheriff reportedly twice tried to seize ANCYL assets, but found there were none.
In a previous answering affidavit, ANC secretary general Gwede Mantashe said the ANCYL had no assets and no funds to be liquidated to pay its outstanding debts.
Dirk Vetten, for UEM, told the court in June that his clients decided to bring an application for both the winding-up of the ANCYL and its sequestration.
The affidavit for sequestration was submitted late in the filing of papers.
Winding-up is the process of dissolving a company, during which its assets are collected and debts are paid off, either out of the assets or from contributions by its members, if necessary.
Sequestration is the surrendering of an estate by a person, a process which is instituted by a court to help people who are no longer able to pay their debts because of uncontrollable circumstances.