ANC must pay R100m for 2019 election branded goods

THE ANC will have to fork out more than R100 million for the branded goods such as banners it ordered and received for its 2019 election campaign, but didn’t pay.

The party later said the contract was invalid because of non-compliance with the requirements of its internal supply chain policy.

Following the non-payment of their bill, Ezulweni Investments, which supplied the branded items to the ANC, turned to the South Gauteng High Court in Joburg to enforce the payment. The court ruled in its favour, but the ANC took the matter on appeal before three judges of this division.

The party argued that the high court was wrong in rejecting the ANC’s defence to the claims based on the fact that, according to the party, the contract for the rendering of the services and the supply of material was invalid because of non-compliance with the requirements of the internal supply chain policy of the ANC.

The ANC denied that there was a valid oral agreement between it and Ezulweni for the supply and later removal the banners.

The ANC pleaded that no contract came into existence.

It claimed its internal requirements for the conclusion of the contract in question were flouted.

The internal requirements were laid down in its supply chain policy, which required that the provision of services in relation to the election was conditional on, among others, approval by the elections committee and its treasurer-general.

This, the ANC argued, didn’t happen. Thus it argued that there was no valid contract in place. It said the officers who signed for the goods didn’t have the authority to do so.

Prior to the 2019 national elections, the CEO of Ezulweni Investments did a presentation at the ANC headquarters at Luthuli House for the supply of the branded goods for the election campaign.

The ANC placed an order with Ezulweni to supply it with 30 000 PVC banners, which Ezulweni agreed to do, install on street poles and polling stations, and remove them after the elections.

In March 2019, as a result of the substantial financial outlay which Ezulweni had to commit itself to in the manufacturing process, the contractor sought assurance from the ANC in the form of a formal order or a “demonstrative command“, that it would pay.

The ANC provided Ezulweni with a letter of confirmation on its formal letterhead dated April 2, 2019, signed by the head of elections at the time, Minister of Transport Fikile Mbalula, which was also sent to other officials in charge or procurement in the party.

Judge Leicester Adams, who wrote the appeal judgment, said the letter written by Mbalula was a clear acknowledgement of the ANC’s liability in terms of the invoice that had been received from Ezulweni.