DOCUMENTS

ANC has ten days to honour its liabilities – Carl Niehaus

If it fails to do so organisation will face legal proceedings to declare it insolvent

Letter of Demand to the ANC to honour its liabilities within 10 days or face proceedings to declare it insolvent and to be sequestrated

21 October 2021

This letter of demand from Mabuza Attorneys, the attorneys of Carl Niehaus and McDonald Mathabe, was sent today (Thursday, 21 October 2021) to the Deputy Secretary General of the ANC, Ms. Jessie Duarte. It concerns a demand for the ANC to honour its liabilities, and in the event of failing to do so to face proceedings to declare the ANC insolvent and to be sequestrated.

The legal letter of demand follows on the criminal charges that Carl Niehaus and McDonald Mathabe have laid against the National Office Bearers of the ANC, and the African National Congress (ANC). In addition they have also lodged a formal complaint with the Public Protector against government agencies that failed to execute their legal duties, and did not bring criminal charges against the ANC for having made Provident Fund and PAYE etc. deductions from staff salaries, but fraudulently did not pay over such deductions to the relevant institutions/agencies.

On the 15th of September 2021 when the criminal charges were laid it was indicated that two further complementary steps will be taken, with the criminal charges having been laid and the official complaint with the Public Protector now also having been submitted, this letter of demand - which is the initial step in a process to declare the ANC insolvent - the execution of those envisaged steps is concluded.

This letter sets in motion a well-considered legal process to declare the ANC insolvent in the event of it being unable to honour its debts and liabilities to staff, and other creditors. It is expected for the ANC to prove that its assets exceed its liabilities. In the event that the ANC fails to do so, and fails to honour its debts within the 10 day deadline (counting from today when he letter of demand was sent), proceedings will be instituted without any further notice to declare the ANC insolvent, and for it to be sequestrated. In the event of that happening the ANC will no longer be a viable political party which complies with the electoral laws of the Republic of South Africa.

This is the sad consequence of the acts of serious financial maladministration and mismanagement by senior ANC leaders, and mangers, who failed to uphold the law, and thus brought the ANC into disrepute and on the brink of destruction.

Issued by Carl Niehaus and McDonald Mathabe.

For further information Carl Niehaus can be contacted on: 081 881 9408.

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Letter of Demand

Ms. Yasmin Jessie Duarte The Deputy Secretary General African National Congress

Dear Ms Duarte,

Carl Niehaus and McDonald Mathabe / The African National Congress

We act on behalf of Mr Carl Niehaus and Mr McDonald Mathabe.

We are instructed as follows:

2.1. Our clients are both employees of the African National Congress (ANC) at Luthuli House in Johannesburg.

2.1.1. Mr Niehaus is employed as Manager Special Projects - SGO and earns a monthly basic salary of (withheld).

2.1.2. Mr Mathabe is employed as a Coordinator of Special Projects - SGO and earns a monthly basic salary of (withheld).

2.2. From about June 2018, without notifying the employees the ANC stopped paying employee benefits as per the terms of the employment contracts, ie. medical aid, pension fund, Unemployment Insurance Fund and PAYE tax.

2.3. Our clients were only made aware of the non-payment of the benefits when:

2.3.1. other employees passed away and their families could not claim pension benefits on their behalf; and

2.3.2. the medical aid company sent them notices that their medical aid membership and benefits had been suspended (as a result of non­payment).

2.4. In addition to the non-payment of employee benefits, our clients together with other ANC employees last received their regular monthly salaries some 4 months ago on 25 June 2021.

2.5. On 13 October 2021 the ANC paid clients the equivalent of one month's salary and they (our clients) are in the process of confirming whether their employee benefits have also been paid. In the circumstances:

2.5.1. Mr Niehaus is currently owed (withheld), which is the equivalent of his three months' salary.

2.5.2. Mr Mathabe is currently owed (withheld), which is the equivalent of his three months' salary.

The situation is untenable and has put our clients in grave risk, their medical insurance has been suspended, they have fallen behind on their bonds and vehicle payments and face the possibility of evictions and repossessions, and they are unable to provide for the needs of their families.

It has come to our clients' attention that the amounts which the ANC illegally failed to transfer to various agencies stood at R1,116,780 and R742,211 in respect of deductions made from Mr Niehaus and Mr Mathabe, respectively.

In the circumstances, we are instructed to demand, as we hereby do, that the ANC
within 10 days of this demand:

5.1. pay Mr Carl Niehaus the amount of (withheld) outstanding salaries,

5.2. pay Mr McDonald Mathabe the amount of (withheld) in outstanding salaries,

5.3. give written confirmation that it will pay them (Mr Niehaus and Mr Mathabe) their regular monthly salaries from end of October 2021 onwards,

5.4. account for the amounts of R1,116,780 and R742,211 referred to above, and

5.5. indicate whether or not it is unable to pay the abovementioned debts owed to our clients, and other employees, and also whether its assets exceed its liabilities.

Failing compliance with the above demand and deadline, our clients will institute proceedings to declare the ANC insolvent and to require its sequestration, without any further notice to you. Other additional steps which may follow will include approaching the IEC for the dissolution and/or deregistration of the ANC on the grounds that it is no longer a viable political party which complies with the electoral laws of the Republic of South Africa.

All our clients' rights are reserved.

Mabuza Attorneys