MORE companies that the ANC Youth League owes money to are set to emerge as part of liquidation processes that could see the assets of the ruling party’s youth wing being sold to pay off debt.
This is despite the ANCYL paying a R200 000 legal bill relating to the defamation suit between the organisation and Western Cape Premier Helen Zille.
Yesterday, the man behind the recent final liquidation order against the ANCYL - Johan de Waal, who represented Zille in 2010 when she filed the lawsuit - said the payment would not stop the liquidation process.
“Now it is complicated because we cannot take that amount because maybe there are other creditors. There must be a meeting of creditors and everybody must put in their claims and so on. It has been eight years since we have been nagging and nagging for this money,” De Waal said.
The lawsuit was in connection with statements made by then ANCYL president Julius Malema and spokesperson Floyd Shivambu against Zille.
Shivambu had said: “Zille has appointed an all-male cabinet of useless people, the majority of whom are her boyfriends and concubines so that she can continue to sleep around with them, yet she claims to have the moral authority to question our president.”
The matter was later settled on the basis of an apology to Zille but cost orders were made against the ANCYL, Malema and Shivambu, which were never paid.
In 2016, De Waal took cession of Zille’s claim in exchange for waiving his claim for fees that she owed him for representation on the matter.
On Thursday, the Gauteng High Court, Pretoria, declared the ANCYL bankrupt and insolvent, after De Waal made the liquidation application in November last year.
This was also after the ANCYL ignored two high court warrants of execution sent to it to recover the money.
The order was set to bring the functioning of the embattled youth body into jeopardy, as all its transactional operations, including bank accounts, will be taken over by a liquidator which will be appointed by the Sheriff of the High Court.
ANCYL national spokesman Mlondi Mkhize said the youth body was not aware of both the warrants of execution and the application for liquidation.
“We were not aware that there were court papers filed. We only became aware when the order came to us. We only found out after the ruling,”Mkhize said.
De Waal’s lawyer Hein von Lieres accused the ANCYL of dishonesty for claiming not to have known of the bill, which has taken eight years to settle.
“On September 12, 2016, an execution warrant was served on them at their offices and again in June 2017. They were notified that my client was now the creditor in May. We served application papers on them at the end of last year. It is disingenuous to say they did not know about it,” Von Lieres said.
The pending liquidation of the youth league was out of his hands as many other creditors were set to be identified by the liquidator, he said.
“The fact that a petitioning creditor is paid does not make them solvent. That does not solve the problem.
“There is a final liquidation order, which is their problem and they are going to have to go and show a court, aside from having paid me or my client, that they are solvent. The court order does not compel them to pay me because for that we have a warrant of execution which we served on them,” Von Lieres said.
The ANCYL has roped in Brian Kahn to defend the organisation and has indicated its plans to appeal against the liquidation ruling. “There will be no course of continuing to liquidate the ANCYL when the people who demanded money have their money.
“We are going to take the necessary legal route to be out of liquidation,” Mkhize said.