Durban — A National Freedom Party faction, led by party Parliament Member Mzwakhe Sibisi, said it would institute an independent forensic investigation into how the party debt spiralled from R13 million to R25 million within seven years.
The party now faces liquidation by the debtor, Ezulweni Investments.
Addressing the media on Tuesday, the party’s national administrator, Teddy Thwala, said in terms of the current arrangement, Sibisi is the secretary-general of the Interim National Executive Committee.
In terms of the party’s constitution, Sibisi was supposed to sign an acknowledgement of the R25 million debt and, therefore, had no idea who signed.
Thwala said the only debt the party knew about was the R13 million it had taken from a Newcastle-based Investment company in 2013. And, even that amount, the party did not know how it was spent since there was nothing to show for it. He said they had handed over the matter to the party’s legal firm, which will work with the forensic investigators.
“It is impossible in this country that a debt of R13 million can accumulate interest up to R25 million within seven years. Therefore, we will institute a forensic investigation,’’ said Thwala.
“We do not believe the figure was correct, and there are rumours that the company handed R3 million in cash to individual leaders. Besides that, we are saying those who acknowledged the debt must pay from their pockets.”
Thwala said the party’s legal firm was also looking into the Independent Electoral Commission’s decision to withhold the party funds and said the party was contemplating taking the matter to court.
The IEC was wrongfully withholding the funds, he said, since the case – which it had relied on and cited in taking the decision – had been settled. He said the IEC had raised concerns that since the party had fired him as its accounting officer, it would not release the money, but the matter had been settled in court, which set aside his dismissal.
Sibisi, in his capacity as secretary-general, announced that the party would hold its elective conference from December 15 to 17 and called on branches to start nominating leaders of their choice.
He said he was granted powers by the court when it nullified the conference that took place in Ulundi in 2019. The NEC has a right to organise the conference.
The party would soon negotiate the payment method with the investment company after reaching an agreement as to what was the current figure, he said.
The company’s attorney, Shafique Sarlie, said the judgment it obtained and the written acknowledgement were against the NFP. Therefore, the liquidation is similarly against the NFP. He added that those who dispute it now did not come to court to argue against it because they knew they would be a laughing stock.
The NFP took a R13 million loan from the company to fund its 2014 general elections campaign and was hoping to use the councillors’ contributions after 2016 to repay it.
The Newcastle-based company is involved in the printing business and was said to have had a good relationship with the late party founder, Zanele kaMagwaza-Msibi, while she was still with the IFP.
The NFP did well in the 2011 local government elections, getting 227 councillors, including mayors, deputy mayors and speakers, but problems started in 2014 after its leader accepted an offer from then-president Jacob Zuma to be deputy minister of science and technology. Some party leaders were allegedly against the decision.
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