Insolvent ANCYL hobbled

2013-11-02 00:00

THE ANC Youth League (ANCYL) was yesterday declared provisionally insolvent by the Johannesburg high court over R12,8 million it owes a Bloemfontein trust.

This could become an embarrassment for the ANC because the liquidator appointed to trace the ANCYL money may also scrutinise the ANC’s financial affairs.

A legal expert told sister paper Volksblad that the liquidator has the necessary power in terms of the Insolvency Act to search for any assets.

It appears from the insolvency application that the operations of the two organisations are, to a great degree, intertwined.

If ANCYL money had been moved to the parent organisation, it would have to be transferred back to allow the league to pay its debt.

Acting judge A.R.G. Mundell ordered that the youth league be placed under provisional sequestration with the master of the Johannesburg high court, resulting in the loss of the league’s legal status.

ANCYL’s operations are now in the hands of the master and the league cannot make any decisions that are legally enforceable.

Mundell said in his ruling that he could not close his eyes to the proud role the youth league has played in the past, and currently still plays in the political and cultural life of the country.

He also took into consideration the close link between the league and the ANC, and the interest that the ruling party has in the proper functioning and administration of the youth league.

A closed corporation, Z2 Presentations, owned by Bloemfontein businessman Willem Adendorf, said in its application that the youth league owed it R12,8 million plus interest for services rendered in 2008 when the league held its congress in Bloemfontein, during which Julius Malema was elected as its leader.

The ANC had up to November 2011 also paid part of the league’s debt.

It appeared from the court documents that before and during the congress the league had paid R4,5 million in three installments as a deposit.

However, after those payments, R7,6 million — which was spent on meals, accommodation and other facilities available to the thousands of congress delegates — remained in arrears.

Advocate Dirk Vetten, who represented Z2 Presentations, said it must be determined what had happened to the league’s assets.

He said thousands of its members pay fees to the organisation, and that it receives donations and conducts fundraising campaigns.

This justifies an investigation into the ANC to determine whether some of the youth league’s assets were held by the parent body.

Vetten was instructed by attorney Marius van Rensburg of Horn and Van Rensburg in Bloemfontein. The return date is January 27.

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