Bloem business wants youth league liquidated

2012-12-05 00:00

AN application to have the ANC Youth League liquidated was submitted to the Johannesburg high court yesterday.

In the application, the closed corporation Z2 Presentations states the league owes it R12,8 million. The amount includes R7,6 million for services that Z2 Presentations rendered at the league’s shambolic Bloemfontein congress in 2008, where Julius Malema was elected leader. The balance of the debt is mostly made up by interest incurred since 2008.

Marius van Rensburg, Z2 Presentations’ legal representative, said yesterday the application had not yet been served on the youth league, but the the sheriff was asked to treat this as an urgent matter during this week.

The youth league’s acting leadership could not be reached for comment yesterday.

Malema was relieved of his membership earlier this year and Ronald Lamola currently serves as the acting president of the league.

ANC spokesperson Keith Khoza said the party was not aware of any liquidation application.

He said it was highly unlikely that the youth league could be liquidated, as it had no assets and even its offices were lent to its members by the ANC.

Asked how the youth league could enter into contracts with service providers despite having no assets or income, Khoza said the league probably hoped to collect funds to cover costs. He referred further questions to Mathews Phosa, the ANC’s treasurer-general.

The youth league’s 2008 congress was extended by two days after Kgalema Motlanthe, the deputy president of the ANC, stepped in to save the conference from total derailment.

The court documents state the youth league and the ANC have since negotiated with Z2 Presentations. A few payments were made, of which the last was deposited in 2011, on November 18.

Willem Adendorff, the Bloemfontein business owner behind Z2 Presentations, said in a sworn statement the youth league is at least “commercially insolvent”.

Adendorff acknowledged he had no security for the league’s outstanding debt.

Summons had been served on the league in the Bloemfontein high court in 2008 on July 1, and a default judgment was obtained.

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