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Eltel, a telecommunications company, has moved to attach nearly R40m from five ANC Nedbank accounts, including election, fundraising and salary funds, over a 2019 debt acknowledged by Paul Mashatile in 2022.
The ANC is facing an attempt to seize nearly R40m from its bank accounts, including funds earmarked for elections, fundraising and salaries. The move follows a private company's effort to enforce a debt it says the party has failed to settle for more than seven years.
Eltel Moves to Attach ANC Funds
Documents filed in the high court in Johannesburg show that the debt arose from work allegedly completed for the party in 2019. Then treasurer-general Paul Mashatile formally acknowledged the debt in 2022, but it has since escalated to R36.4m, excluding additional interest and legal costs. Eltel, a telecommunications company, has moved to attach money held in five of the ANC's Nedbank accounts.
The accounts targeted include the party's elections, fundraising, levies and salary accounts, as well as an account designated for the Electoral Commission of South Africa. In a notice to the bank dated September 25, the company, through the sheriff, demands that money held in the identified accounts be paid over. The notice says the payment must satisfy the alleged judgment debt of R39.9m, including interest.
The notice states that the execution creditor obtained a writ of execution against the execution debtor on 25 September 2026. It calls on Nedbank to pay over the money within nine days of service. Eltel warns that should the bank fail to comply, dispute its liability or fail to satisfy the sheriff as to its defence, it may approach the court for an order compelling payment.
Mashatile Allegedly Acknowledged ANC Debt
The attempt to attach the accounts follows a claim rooted in an alleged acknowledgement of debt signed by Mashatile on March 16 2022. Eltel's particulars of claim say Mashatile met the company's chief executive, Asif Casoojee, at his Sandton home to discuss the party's outstanding debt. According to Eltel, the debt arose from work allegedly carried out between February and May 2019.
In the acknowledgement of debt attached to the particulars of claim, Mashatile allegedly confirmed that the ANC owed the company R24.2m, comprising outstanding capital, interest and legal costs. The document further records that the debt arose from agreed work carried out for the ANC, which the company claimed remained unpaid despite repeated undertakings by the party.
It states that the ANC is presently indebted to Eltel in respect of agreed work done during the period February 2019 to May 2019, which debt is still due, owing and payable. The acknowledgement allegedly set out an instalment payment arrangement, with the party undertaking to settle the outstanding amount by October 2022.
Default Judgment Seeks R36.4m
However, Eltel alleges that the ANC failed to honour the agreement, defaulting on payments and leaving the outstanding balance unpaid. A draft default judgment order filed on September 25 provides for the ANC to pay R36.4m. It also provides for R582,531 in interest calculated from July 1 to September 25 2026, and legal costs of R2.9m.
The company claims that the party subsequently continued to engage with it over the debt, making further undertakings to settle the amount in e-mails, WhatsApp messages and oral discussions. In its particulars of claim, Eltel argues that these engagements amounted to repeated acknowledgements of liability, which interrupted the running of prescription in terms of the Prescription Act.
Eltel is seeking payment of the full amount and interest at the prescribed rate of 10.5% per annum on the outstanding capital, as well as legal costs. The litigation was instituted after a combined summons was issued against the ANC in September. The sheriff's return of service records that the documents were served at the party's headquarters, Luthuli House, in Johannesburg.
ANC Accounts Face Uncertain Impact
The case raises questions about the party's outstanding financial obligations and the potential impact of the enforcement proceedings on accounts intended for its operations, including election-related activities. However, the documents do not establish how much money is currently held in the five accounts or whether the balances are sufficient to satisfy the amount being pursued. They also do not confirm whether Nedbank has paid any money over to the sheriff or whether the ANC has challenged the attachment.
While the execution notice states that a writ of execution was obtained, the court file also contains a draft order relating to an application for default judgment. The final status of the judgment and execution process therefore requires confirmation from the court. The Sunday Times sent questions to ANC spokesperson Mahlangi Bhengu-Motsiri, but she did not respond to calls or WhatsApp messages.
The development comes as the ANC campaigns for local government elections, with president Cyril Ramaphosa recently conducting a walkabout at Mega City Mall in Umlazi, south of Durban, KwaZulu-Natal, to engage residents as part of the party's election campaign in eThekwini.
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TimesLIVE:This story was compiled and edited by the HeadTopics newsroom and HT AI from the reports above.
ANC Debt Recovery Bank Account Freeze Paul Mashatile Eltel ANC Bank Accounts Eltel Debt Nedbank Attachment R40m
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