ANC liable for over R100-million in 2019 elections banners fiasco - Supreme Court of Appeal ruling

Nine Judges in three different courts have now ruled that a KwaZulu-Natal marketing company had a binding contract with the ANC and the party owes millions of rands for the supply of election banners ahead of the May 2019 general elections. 

Read more in Daily Maverick: Luthuli House assets in crosshairs as firm aims to claw back R102-million from ANC

In the latest ruling, unanimous from the Supreme Court of Appeal (SCA), Judge Trevor Gorven said the party’s version that it had no contract with Ezulweni Investments was “utterly untenable”.

“The denials of the ANC fall into the category of bald, uncreditworthy denials designed to create fictitious disputes of fact,” said the judge.

The court had also refused an application by the ANC to lead further evidence during its appeal in the form of a forensic report, ostensibly done by EMS Forensics into the procurement.

In refusing to consider this, Judge Gorven said the report itself was not put up but only an executive summary and it was unsigned and undated.

It made reference to a Whatsapp message indicating that the company and the ANC’s representatives could “make millions” out of the deal.

Judge Gorven said this had not been presented as evidence when the matter came before the two lower courts. Ezulweni had requested access to the device on which the message was reportedly received but this had been refused. An IT expert had also testified, unchallenged, that WhatsApp messages could be amended, edited or faked.

Previously Ezulweni applied to seize assets worth more than R102-million from the ANC after the party refused to pay it despite two judgments in the company’s favour: one handed down in September 2020, and an appeal heard by a full bench of the Johannesburg high court in June 2022.

In the high court appeal ruling, the three judges said the ANC’s defence was “far-fetched”.

The ANC applied to the SCA for leave to appeal that ruling, but the appeal lapsed.

After Ezulweni obtained the writ of execution, the ANC reinstated the appeal, which was heard early in November and handed down on Friday.

Read the judgment here.

Judge Gorven, writing for the court, dealt with the stance of the ANC that there had been no verbal agreement between the two officials who negotiated the deal with Ezulweni boss Renash Ramdas, and if there was, the officials had no authority to do so.

Judge Gorven said Ramdas, who described himself as a long-standing, loyal member of the ANC, had at a meeting in February 2014 met a Mr Mabaso, the party’s finance manager, and a Mr Nkholise, the personal assistant to Fikile Mbalula, who headed the election campaign.

It was at that meeting that an “oral agreement” was concluded for the design, ordering, printing and placing of the banners.

Ramdas said he was in constant communication with Nkholise and Mabaso. He sent almost daily WhatsApp messages, including photographs of the banners. He sent three invoices for R87-million, R100-million and about R2.4-million.

In response to one, Mabaso and Mkholise sent a document bearing the signature of Mbalula, addressed to Paul Mashatile, informing that “comrade Nkholise” has been assigned as the signatory for bookings and money for the duration of the election campaign.

Another was a photograph of a letter addressed to Mashatile containing the signature of Mbalula which requested assistance with the payment of the first invoice.

Invoices not paid