Desperate ANC seeks to avoid scrutiny of donations

As part of its fundraising efforts leading up to the May 29 polls, the ANC has asked potential donors to limit their contributions to the party to a maximum of R99,000, circumventing the disclosure limit set out in the Political Party Funding Act.

The act requires that political parties declare all donations of more than R100,000.

The move highlights the ANC’s desperation to raise funds before the elections.

However, it also raises questions about the party’s commitment to transparency as it undermines the spirit of the act, the main objective of which is to ensure transparency and trust in political parties.

This is amid fears that anonymous funders are pumping money into parties in exchange for influence on policy.

The crowdfunding initiative comes shortly after the ANC successfully settled a R102m lawsuit by Ezulwini Investments. After facing financial difficulties for months, which led to unpaid debts and employee salaries, the party reached a settlement with the marketing company in December for an undisclosed sum.

Ezulwini had previously applied for the attachment of its assets, including its headquarters in Johannesburg, to cover the debt.

The party’s aim, as stated on its website, is to ensure it is equipped to secure a decisive win in the national and provincial general elections.

“Your pledge, whether big or small, will go a long way to help the party to be able to live up to our 55th conference resolutions, the manifesto declarations and commitments to the people and [to] deliver in terms of our national programme of action.”

In March, the Electoral Commission of SA (IEC) confirmed that it will accede to a request from opposition party ActionSA to probe the Ezulwini settlement to ensure it is in line with the prescripts of the Political Party Funding Act.

Out of R59m in political funding declared to the IEC for the three months to December 31, the ANC disclosed receiving R10m, the third-largest behind political newcomer Rise Mzansi, which declared R16,744,186.

The ANC has previously argued that the disclosure threshold set by the legislation deters funders, resulting in financial difficulty for the party. It recently endorsed a bill introduced by the home affairs committee in parliament that gives a greater share of the available funding for political parties and independent representatives to the ANC compared with what was previously provided for.

It overrode objections from the DA and smaller parties such as the ACDP, FF+ and IFP in adopting the Electoral Matters Amendment Bill, which will change the formula for the funding of political parties. Small parties will thus experience a sharp reduction in allocations.

The ANC faces its toughest elections yet, with various polls estimating that it may lose its majority for the first time, forcing it to form coalitions.

In particular, the party is facing competition from the uMkhonto we Sizwe party, which is backed by former president Jacob Zuma. The

newcomer fishes from a similar voting pool as the ANC, with a focus on Zuma’s home province of KwaZulu-Natal.

Zuma’s candidacy is being challenged by the IEC in the Constitutional Court after an earlier ruling by the electoral court that upheld a decision by the MK party to include the former president on its lists of candidates to parliament.

President Cyril Ramaphosa has defended the IEC’s court cases against the MK party and his predecessor, telling ANC supporters: “I do not buy this notion that the IEC is venturing into politics.

“The IEC is inherently nonpolitical and independent. We must defend its independence, just as we should defend the independence of our courts.”

He said the appeal “is based on bringing clarity to the law. The Constitutional Court could give clarity once and for all.”