By: Natasha Archary

The year that was: Gareth Cremen Business Rescue Specialist & Partner at Cox Yeats joins Gugulethu Mfuphi on Kaya Biz, sharing insight into the liquidations and business rescues that made headlines.
In the backdrop of the ANC’s failure to settle its R102 million debt, the party’s financial situation has raised alarms, despite the ruling party denying reports that its broke.
This after the Sheriff of the court was outside the ANC’s headquarters, Luthuli House on Monday, 04 December ready to attach assets over the party’s R102 million debt.
A writ of execution in May, from the Gauteng High Court allowed the Sheriff to attach movable assets from Luthuli House, which would be sold to recover the debt owed to Ezulweni Investments.
In 2019, the ANC made use of Ezulweni Investments to supply and install election promotional material, which included 30,000 PVC banners, and the collective removal after the elections.
While the party denied that a contract was agreed upon, the High Court found that Ezulweni Investments CEO, Renash Ramdas, held a verbal agreement.
Assets including desks, chairs, laptops, plasma TVs, lounge suites, fridges, microwaves, and couches were catalogued by the Sheriff, but with their value ranging from as little as R200 to R5000, doesn’t begin to scrape the surface of the staggering debt that’s owed to Ezulweni Investments.
“Typically when organisations in any manner, shape or form, are in a state of financial distress, and financial distress doesn’t happen overnight, they need to start appointing Chief Restructuring Officers and start doing an informal workout and try to turn it around before the time.
Because you may find in certain circumstances you get the wrath of the creditors coming down and pursuing the directors, ultimately for what is called reckless trading.”
Gareth Cremen Business Rescue Specialist & Partner at Cox Yeats
In the case at Luthuli House, Gareth says the assets which were logged on an inventory or catalogued may be attached by the Sheriff, and will most likely be put up for sale at a public auction.
According to Gareth, the Sheriff can go back to Luthuli House to attach the assets, or attach the party’s bank accounts to recover these funds.
Listen to the conversation on Kaya Biz:
Also read: Gugulethu Mfuphi walks away with 4th Radio Award for Kaya Biz



