Sheriff to sell off ANC HQ due to R25m debt to risk firm

THE ANC’S headquarters in the Joburg CBD, Chief Albert Luthuli House, could soon be up for grabs after the Johannesburg High Court ordered the sheriff to auction the building.

The order was issued after the cash-strapped party failed to pay a R25million debt owed to former spooks roped in to help with the 2014 Provincial Election Strategy, court documents have shown.

Sources say an attachment letter will be delivered by the sheriff of the court to Luthuli House tomorrow, which is set to cause untold embarrassment to the ANC.

The court papers show the ANC is embroiled in a legal battle with Resurgent Risk Managers, a company owned by Manala Manzini. He is a former national intelligence agency boss with Arthur Fraser, who was also a director of the company but resigned last year when he was appointed as State Security Agency director-general.

According to court papers, the ANC, represented by Ignatius Jacobs, in 2013 entered into a “verbal agreement” with Barry Fraser, Arthur’s brother, who represented Resurgent to provide election support and strategic services to the ANC during the 2014 national elections.

On Friday, ANC secretary-general Gwede Mantashe said the party’s lawyers were dealing with the matter and “we are challenging it”. However, he questioned why any company would enter into a verbal agreement for R20 million. “Ask them to show you a contract,” he said.

But an intelligence agent, who did not want to be named, said Luthuli House is a national key point, and therefore could not be sold.

“These people are taking chances. Luthuli House is a national key point and that is why there is a police van stationed outside the building 24 hours a day,” he said.

Several calls to Ignatius Jacobs, who has been cited in the court papers as the person who made the verbal agreement, were unanswered this week.

However, a source said Resurgent delivered on its mandate in terms of the outcome of the elections in which the ANC obtained a resounding 62% majority, despite having a verbal agre ement.

In the court documents, Resurgent argued that, in terms of the agreement, the firm, with the assistance of third party service providers subcontracted by it, provided services such as developing a strategic message and communication framework, the setting up of polling and focus groups, media monitoring and the development of an analytics model for voters.

The “verbal agreement” was then reached that Resurgent would charge the ANC “its usual fee” which would not exceed R20m, including operational and travel expenses.

The fee was payable on submission of an invoice.

Then in May 2014 Resurgent invoiced the ANC for services rendered for an amount of R19950000, but the ANC did not pay.

On November 9, 2016, Bowman Gilfillan, acting on behalf of Resurgent, wrote a letter of demand to the ANC top six: President Jacob Zuma, his deputy Cyril Ramaphosa, treasurer-general Zweli Mkhize, secretary-general Gwede Mantashe, his deputy, Jessie Duarte, and national chairperson Baleka Mbete. The law firm gave the ANC 10 days to settle and threatened to “institute legal proceedings against the ANC without further notice”.

Resurgent argued in the court papers that: “Despite the lawful demand, the defendant (ANC) has failed to or neglected to pay” them.

The source said the ANC ignored the letter of demand hoping it would be delayed and the debt would prescribe.

When Resurgent did not receive payment in May, it approached the High Court in Joburg, which issued a court order for the sheriff to auction Luthuli House.

Questions sent to Resurgent were returned with a terse: “Resurgent does not wish to comment on the matter. Regards, Management”.

Calls to Manzini also went unanswered.

This is not the first time that Jacobs has been embroiled in issues around election war-room strategies. Jacobs, Joseph Nkadimeng and Shaka Sisulu were also cited in court documents by PR strategist Sihle Bolani.

Bolani brought a lawsuit against the ANC after it failed to pay her for what is termed the “black ops” campaigning leading up to last year’s local government elections.

The campaign was intended to disempower the opposition parties such as the EFF and the DA by spreading fake news on Twitter, Facebook and on posters.

Jacobs, who was cited as one of the defendants, resigned as general manager in the ANC ahead of a disciplinary hearing.