Why a consortium is suing South Africa's ANC for campaign debt
South Africa’s African National Congress (ANC) is facing legal and financial pressure after allegedly failing to settle more than R20 million (approximately US$1.1 million) owed to companies that managed parts of its 2024 election campaign, a dispute that has now escalated into a High Court bid for a default judgment against the party.
The Sisonke Consortium and O’Brian Digital, which provided large-scale communications and campaign services to the ANC, filed an application in the Johannesburg High Court seeking payment for work completed under a contract reportedly worth R70 million (approx. US$3,850,000), The Citizen reports.
According to court papers, the companies began formal proceedings on August 14, following multiple unsuccessful attempts to recover the outstanding funds. The ANC was formally served with the full court application on August 26 at its headquarters, Luthuli House.
Under South African legal procedure, the party had 10 days, until September 9, to file a notice of intention to defend the lawsuit. However, the applicants allege that the ANC failed to respond within the required timeframe. As a result, they are now seeking judgment under Rule 31(5) of the Uniform Rules of Court, which allows for a default judgment when a respondent does not oppose a claim.
The consortium is demanding R20,878,220.22, plus 11% interest from the date of default, scale C legal costs, and additional relief. While the ANC is said to have paid R50 million (approximately US$2,750,000) of the total contract, it allegedly failed to settle the remaining balance.
In an affidavit, Sisonke Consortium director Mxolisi Tyawa stated that the company fulfilled “all contracted services” and that the dispute has dragged on for more than 18 months without resolution. “The fallout has now escalated into a full-blown legal confrontation, months ahead of the local government elections next year,” a source familiar with the matter told reporters.
ANC spokesperson Mahlengi Bhengu-Motsiri did not respond to requests for comment at the time of publication.
In October, the ANC withdrew a court application seeking to unfreeze its bank accounts attached over an R85 million (approximately US$4,675,000) debt to Ezulweni Investments after reaching a last-minute settlement.
This story is written and edited by the Global South World team, you can contact us here.
