## ANC Court Papers Reveal Possibly Illegal Debt Settlement with Ezulweni Investments
Recent court filings by the African National Congress (ANC) have brought to light details of a debt settlement agreement with Ezulweni Investments that actionsa alleges breaches the Political Party Funding Act. The agreement, previously withheld from public scrutiny, details how the ANC addressed a R150 million debt owed to Ezulweni Investments.
The documents (available here) show the ANC effectively settled the debt through a R190 million order for election materials intended for the 2024 campaign. Independent valuations reportedly placed the actual value of these materials at R125 million, meaning R65 million in value was used to offset the R150 million debt.
ActionSA contends this constitutes an approximately R85 million “donation-in-kind” at the time of the agreement,substantially exceeding the R15 million annual donation limit stipulated by the Political Party Funding Act for individual donors.
“This revelation confirms that the debt settlement agreement itself is unlawful in terms of the Political Party Funding Act,” stated ActionSA, directly contradicting previous statements made by ANC leadership and the Independent Electoral Commission (IEC).ActionSA initiated a campaign in December 2023 to challenge the legality of the settlement and the IEC’s initial refusal to investigate. The party argued the agreement was likely to violate funding regulations, citing the ANC’s financial difficulties at the time – including reported inability to pay striking workers – and a lack of declared donations sufficient to cover the settlement.
following the release of the court papers, ActionSA plans to resubmit the agreement to the IEC, urging a formal investigation and a declaration that the agreement violates the Political Party Funding Act. The party will pause current litigation against the IEC for 30 days to allow for this review.
ActionSA has also expressed broader concerns about the enforcement of the Political Party Funding Act, pointing to discrepancies in reported donations from other parties, such as MK, during the recent national elections. The party argues the IEC’s perceived inaction undermines the integrity of the Act, creating a system where compliance is optional and enforcement is lacking.
