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Wednesday, August 10, 2022

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ANC fails to overturn ruling forcing it to pay R102m

The ANC must pay a Johannesburg company over R102 million plus interest for supplying election banners the never paid for. Picture: Timothy Bernard / African News Agency (ANA)

The ANC must pay a Johannesburg company over R102 million plus interest for supplying election banners the never paid for. Picture: Timothy Bernard / African News Agency (ANA)

Published Jun 30, 2022

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Johannesburg - The ANC has lost its bid to overturn a South Gauteng High Court ruling ordering the governing party to pay over R102 million to a Johannesburg company that supplied banners for the 2019 general elections.

Ezulwini Investments hauled the ANC before court over its failure to pay for the PVC banners it used in the last national and provincial polls.

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A full bench of the high court – Judges Motsamai Makume, Mpostoli Twala and Leicester Adams – confirmed Acting Judge Urmila Bhoola's September 2020 ruling forcing the ANC to pay more than R102m.

Acting Judge Bhoola ordered the ANC to pay over R100m, including interest at a rate of 15% per annum from May 9, 2019, or alternatively, May 31, 2019, and further alternatively, June 30, 2019 at the rate of 10.25% per annum to the date of payment.

The ANC was also ordered to pay another R2.4m, including interest on the amount at the rate of 10.25% per annum from May 9, 2019, alternatively, May 31, 2019, further alternatively, June 30, 2019 to payment date.

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"The appellant’s (ANC's) appeal against the order of the court a quo is dismissed with costs including the costs of the application for leave to appeal to the high court and the application for leave to appeal to the Supreme Court of Appeal, as well as the costs consequent on the employment of two counsel, one being a senior counsel.

“The order of the court a quo is confirmed," reads the full bench's judgment handed down on Wednesday.

In its application for leave to appeal Acting Judge Bhoola's ruling, the ANC argued that the officials of the company which supplies PVC banners, hand flags, street pole flags, stickers and branded clothing, Nhlanhla Mabaso and Lebohang Nkholise, didn’t have the necessary authority to conclude the agreement on behalf of the party.

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It also told the court that no contract came into existence between it and Ezulwini Investments and further claimed its internal requirements for the conclusion of contracts were flouted.

According to the ANC, its supply chain policy requires that the provision of services in relation to the election was conditional on the approval by the elections committee, its treasurer-general Paul Mashatile and the issuing of a purchase order.

However, the full bench of the high court wasn’t convinced.

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"I am of the view that the high court was correct in its finding that, on the evidence before it, the ANC is liable to Ezulweni on the basis of an oral agreement concluded between them," reads the judgment written by Judge Adams.

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Related Topics:

ANCHigh Court

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