Cash-strapped ANC considers selling off assets to pay off R500m in arrears

A report on the state of the ANC’s finances revealing that the party is half a billion rand in debt was handed to the National Executive Committee (NEC) on Saturday, 12 November, at its gathering at the Nasrec Expo Centre in Soweto, according to an NEC source.

The party is now looking at ways to ensure this debt is paid off and that staff salaries and benefits are paid in full.

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ANC Treasurer General Paul Mashatile said the party would be looking at leveraging its investments to pay off its debts, NEC sources told Daily Maverick. The party is said to have R5-billion worth of assets — some in London and Zambia — which it would be looking to sell off. 

Mashatile also mentioned the possibility of reducing staff and encouraging some employees to withdraw their packages.

A bone of contention is salaries paid to NEC members based at Luthuli House on a full-time basis. An NEC member said these members were paid the equivalent of a deputy minister, bloating the party’s salary bill.

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The governing party has been unable to pay salaries on time for the past year, while the provident fund, unemployment insurance fund and medical aid contributions have not been paid since 2018.

In September,  City Press reported that the governing party had failed to pay the landlords of its merchandise store in Gandhi Square, Johannesburg. The ANC was reported to be in breach of its lease agreement, which has accumulated monthly rentals of more than R3-million.

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In August, the Financial Sector Conduct Authority (FSCA) compelled the ANC to settle the estimated R85-million in outstanding and accumulated debt it owed its workers through a provident fund scheme. 

The FSCA signed an enforceable undertaking with the ANC staff provident fund, requiring the party to pay R10-million into the fund each month until its accumulated contribution arrears were paid in full.



The party has tried lobbying for more funding from the government and launched a crowdfunding campaign with little success. 

The ANC NEC gathering was held to discuss the party’s state of readiness for the national conference where new leadership will be elected. The Electoral Committee has given a presentation on the work it has done so far.

Cyril Ramaphosa presented his political report, and Gwen Ramokgopa, the coordinator in the secretary-general’s office, presented the organisational report. DM