Gallagher Convention Centre has asked the High Court in Johannesburg 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 ANCYL owed it more than R4 million from four events at the centre in June 2011.
The four events were a cocktail function, the ANCYL’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 ANCYL on Friday said it was aware of the claim.
“The NTT [national task team] will be sending representatives on Tuesday, 29 April 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 in a statement.
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 Johannesburg.
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 African National Congress,” according to the affidavit.
The ANCYL’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 youth 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 ANCYL’s 2008 national conference in the Free State.
The conference left the company R15 million out of pocket after the league did not pay its bill.
A hotel, trading as Palanquin Hospitality Management and based in Bloemfontein, claimed R1.5m from the ANCYL, 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. – Sapa