Unnamed donor bails ANCYL out

2014-03-28 00:00

AN unnamed donor, apparently big brother the ANC, has bailed the ANC Youth League out with millions of rands to prevent it from being declared bankrupt.

A Bloemfontein closed corporation, Z2 Presentations, dropped its court application to declare the ANCYL bankrupt after the parties came to an agreement.

The ANCYL allegedly owed about R10 million, including interest, for services rendered during its 2008 congress, at which Julius Malema was elected president.

Z2 owner Wium Adendorff apparently got about half the outstanding money in the settlement — what he was originally owed, sister paper Volksblad learnt.

The parties declined to reveal the conditions of the settlement. The money has already been paid over by the league.

The ANCYL will also contribute to Z2’s legal costs and bear the costs of the application for provisional liquidation.

Volksblad reports it understands that the ANC and the league were unwilling to have their financial affairs under the microscope so close to this year’s election.

It appeared from court papers that before the congress, the ANCYL paid R4,5 million in three parts as a deposit, and owed another R7,6 million for catering, accommodation and conference facilities.

Adendorff said he was glad the saga was finally over, but disappointed that he had not got as much as he had hoped for.

His lawyer, Marius van Rensburg, said they pushed the league as far as they could, until it had no choice but to negotiate. “The liquidation had gone so far that we could deal on our terms,” he said.

After the money was paid over, they agreed to withdraw the provisional liquidation.

However, Mzwandile Masina, convenor of the ANCYL’s national task team, said, “The matter was settled out of court, but that doesn’t mean a sum of money has been paid to the applicants. I don’t know why they are talking about money. In any case, that is confidential information.

“We are very relieved the issue has been resolved. The ANC Youth League will continue to do its work in accordance with its constitution.”

He said the league would not get itself into such a situation again.

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