Mantashe sued for R19m
Advertising company demands R19m
WHILE the ANC is grappling with its internal challenges leading up to the national elective conference in Mangaung in December, the party has been slapped with threats of a R19m civil suit.
Blue Print Strategic Marketing Communications is preparing to sue the governing party in an attempt to recoup the costs of doing business with Luthuli House.
Court documents filed by Blue Print state that the company rendered services to the ANC as they battled it out with other parties for last year’s May local goevrment elections.
The agreement was signed on January 27 and covered the ANC’s election campaign between March and May.
ANC secretary-general Gwede Mantashe and the party’s treasurer Mathews Phosa are cited as second and third respondents respectively.
In court papers filed at the South Gauteng High Court this week, the advertising agency is demanding payment of more than R19m with 15,5% interest for services rendered.
The company says in their affidavit that, as part of their agreement, the ANC undertook to make payment 30 days after receiving the invoice.
However, they say the ANC failed to make the payment as agreed and it has been a cat-and-mouse chase ever since.
Blue Print started by setting their lawyers on the 100-year-old party in September last year but their efforts were fruitless. They claim their lawyers sent a second letter of demand to Luthuli House in March this year, still to no avail.
“In an attempt to assist the respondents and in the spirit of goodwill and trust, the agency advised the respondents of its intention to proceed with a court application,” the court papers say.
Instead of receiving payment, the party’s attorney, Brian Kahn, promised that payment would be made at the end of May or alternatively this month.
The company say it granted the ANC an indulgence until May 31 to make payment of the full outstanding debt, including interest.
“The respondents have failed to make payment and we are not prepared and cannot afford to grant them any further indulgence, the notice states.
” In a letter addressed to the agency, ANC finance manager Nhlanhla Mabaso acknowledged the debt and made an undertaking that the party would settle the debt in due course.
“As a result of the failure to pay the outstanding balance, our client is being prejudiced in that sub-contractors and suppliers are now taking legal action for non-payment, ” Blue Print’s lawyers say.
ANC spokesman Ishmael Mnisi declined to comment, saying only: “That matter remains within the confines of the two parties.”
chelemuk@sundayworld.co.za