ANC Youth League faces another liquidation case

2014-04-25 16:29

Gallagher Convention Centre has asked the Joburg high court to place the ANC Youth League under final liquidation or provisionally sequestrate it, according to court papers.

Atterbell Investments, trading as Gallagher Estate, said the league owed it more than R4m for hosting four events at the centre in June 2011.

The events were a cocktail function, the league’s national congress, a report-back function and a backroom function.

“The respondent [ANCYL] is truly and lawfully indebted to the applicant [Gallagher] in the total amount of R4 814 553.60, plus interest thereon calculated from approximately mid-June 2011 to date of payment, plus legal costs,” the company said in court papers.

The league today said it was aware of the claim.

“The NTT [national task team] will be sending representatives on Tuesday, April 29 2014 to meet with the representatives of Atterbell Investments (PTY) Ltd t/a Gallagher Estate including its CEO in a bid to amicably resolve the matter in question,” the league said.

According to an affidavit by the convention centre’s chief executive Adolf Venter, a default judgment was handed down on the matter in September 2011.

“The default judgment arose from the respondent’s failure to pay the applicant the balance due to it in respect of four function/catering agreements concluded in writing between the applicant and the respondent.”

A writ was executed by the Sheriff of the Court on April 11 this year at the ANC’s headquarters, Luthuli House in Joburg.

It was served on the league’s convenor Mzwandile Masina’s personal assistant.

“[The assistant] advised the sheriff that the [ANCYL] was unable to satisfy the writ nor had any disposable assets/property to satisfy the writ and that all assets at Luthuli House belonged to the ANC,” according to the affidavit.

The league’s failure to pay the outstanding debt constituted a failure to satisfy the solvency and liquidity test as provided for in the Companies Act.

“In the circumstances, it is submitted that the respondent is, at the very least, commercially insolvent as it is unable to pay its debts as envisaged in terms of section 345(1)(b) of the [act] and thus falls to be wound-up [or] alternatively, provisionally sequestrated as envisaged in terms of section 10 of the Insolvency Act,” Gallagher Convention Centre said in its papers.

In March, another liquidation case against the league was settled out of court.

High Court Judge Phillip Boruchowitz had discharged the provisional liquidation order made in November last year.

The original liquidation order against the league was applied for by Bloemfontein events company Z2 Presentations, who had originally been tasked with running the league’s 2008 national conference in the Free State.

The conference left the company R15m out of pocket after the league did not pay its bill.

A Bloemfontein hotel, trading as Palanquin Hospitality Management, claimed R1.5m from the league, lawyer Steven van Rensburg said during a new application brought to court in January.

Palanquin, which is in liquidation, provided accommodation for the conference delegates.

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions. publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.