The ANC treasurer general, Gwen Ramokgopa, recently highlighted the challenges faced by the party due to the Political Party Funding Act. This Act has put restrictions on companies, including those owned by ANC members, from making donations to political parties. Ramokgopa mentioned that the Act has led to companies being reluctant to donate, as they fear becoming targets and having their businesses affected.
The Act requires political parties to disclose their sources of funding for amounts exceeding R100 000. It also prohibits donations from foreign governments, state-owned enterprises, and individuals from disclosure. Parties are mandated to disclose all funds received and how they were utilized within three months of the financial year-end.
Ramokgopa admitted that the ANC was not adequately prepared for the implications of the Act, which has led to financial struggles for the party. In 2023, the ANC faced a legal battle with Ezulwini Investments over non-payment for election campaign banners, risking its ability to contest the 2024 elections. However, the party managed to reach a settlement with Ezulwini Investments after intervention by President Cyril Ramaphosa.
To address the financial challenges, Ramokgopa mentioned that the ANC is encouraging progressive companies to contribute to the Multi-Party Democracy Fund administered by the Electoral Commission of South Africa (IEC). This fund provides a better environment for companies to contribute, rather than directly to individual political parties.
Despite the financial difficulties, Ramokgopa assured that the party’s finances were stable. She also highlighted the importance of transparency and trust between political parties and the public, which the Act aims to establish. Other political parties, including ActionSA and the Economic Freedom Fighters, have also raised concerns about the Act’s impact on their funding.
In conclusion, the ANC is navigating through financial challenges brought about by the Political Party Funding Act. The party is seeking alternative sources of funding and encouraging companies to contribute to the Multi-Party Democracy Fund to ensure financial stability and meet its obligations.
