Insolvency is not something to be scoffed at. Yet, that is exactly what the ANC is doing. It is also doubling down on its moral and financial bankruptcy in its quest to salvage its shrinking support.
The party’s financial woes are no secret and have been widely reported on. From not paying its employees to its website being out of order due to service providers not being compensated, its long string of financial misconduct is glaring and seems to be worsening. It is difficult to discern whether it’s sheer incompetence (highly plausible), a lack of money (also highly plausible) or perhaps both (the most plausible reason) that are causing this, but a new court case and judgment seems to confirm that the party is set to incur big losses and could very well be liquidated.
IOL recently reported that the ruling party failed to pay Ezulweni Investments, a KwaZulu-Natal marketing company, R150 million for providing services for its 2019 election campaign. “Early this year, Ezulweni succeeded in obtaining a writ order against the party’s removable goods from the ANC’s Luthuli House headquarters in Johannesburg, to the value of R102 465 000 and sell them at public auction. The amount has since accumulated interest and stands at R150m. The lawyers say they are ready to attach assets belonging to the ruling party should the ANC fail to comply with the latest judgement,” the online publication reported. Even Luthuli House, its venerable headquarters in Johannesburg, is not safe from seizure in this case.
Its lack of funds and dubious reputation for non-payment have clearly been reflected in its threadbare exposure during the 2021 local elections. ANC posters were a rare sighting in rural areas (a stronghold of theirs) and even in the metros (where it is fighting for survival).
And the ANC-as-party is mirrored in the ANC-as-government’s financial struggles. It is an inescapable situation. Corruption, mismanagement and decay continue to thrive in municipalities, provincial and national departments, and most acutely in state-owned enterprises (SOEs). They have driven Transnet, Eskom, SAA and the SABC to ruin.