ANC retracts resolution to control party funding
The ANC has withdrawn a proposed resolution in the National Assembly that would have averted a situation where there would be no regulations governing the limits of funding of political parties and its disclosure.
ANC whip Noxolo Abraham said more consultations would take place on the resolution and it would be placed on the order paper in the National Assembly plenary next Thursday.
The resolution withdrawn in the National Assembly on Thursday was meant to rectify a regulatory lacuna created by the Electoral Matters Amendment Bill, which has been signed by President Cyril Ramaphosa. The commencement date of the act has not yet been determined.
Without this resolution, there will be no limits and thresholds for donations to political parties.
The bill removed clauses from the Political Party Funding Act governing the maximum amount that may be accepted by a political party or independent representative from a person or entity within a financial year, and the threshold amount of all donations received that must be disclosed.
The Electoral Matters Amendment Bill states that parliament must adopt a resolution on these matters before the president can make regulations on them.
The withdrawn resolution suggests a gap in the law would exist unless the threshold and limits have been set by resolution of the National Assembly to empower the president to make regulations as contemplated in the Political Party Funding Act.
The withdrawn resolution proposed to retain the previous amounts, namely the limit of donations that can be received from one person or entity at R15m and the threshold amount for disclosure at R100,000.
NGO My Vote Counts said in a statement that such a resolution by the National Assembly was essential to ensure political party funding transparency.
The bill amended several pieces of legislation to allow independent candidates to contest national and provincial elections but My Vote Counts said
the bill was also used “opportunistically by the ANC to undermine political party funding laws”.
It opposed the amendments to the Political Party Funding Act on the additional ground that it places too much power in the hands of the president to determine the upper limit of donations and the reporting threshold, as this could disproportionately benefit the political interests of the ruling party “creating an unequal playing field for other political entities. It is also irrational to vest these powers in the president,” My Vote Counts said. There would be the potential for a conflict of interest and abuse.
It said that in the absence of a resolution by the National Assembly and regulations by the president, political parties would be able to take donations of any nature and amount and not have to make this public. “This is the type of environment that enabled state capture,” it said.
In April, opposition parties in parliament petitioned Ramaphosa to not sign the Electoral Matters Amendment Bill on the grounds of its unconstitutionality, and the National Anti-Corruption Advisory Council also advised him of the dangerous effect the bill would have on transparency, My Vote Counts noted in a statement.
It said the commencement date for the bill must coincide with the proclamation by Ramaphosa of the political party funding limits.
My Vote Counts still maintains the bill in relation to the Political Party Funding Act is unconstitutional insofar as it vests all the power with the president to make a final determination of the two limits.
Ramaphosa has also signed the Second Adjustments Appropriation Bill, which provides for the allocation of R200m to the department of home affairs for transfer to the Electoral Commission of SA (IEC) for the Represented Political Parties Fund, which provides funding for political parties represented in the national and provincial legislatures. Political parties (and, in future, independent representatives) are also be funded by the Multi-Party Democracy Fund, which is administered by the IEC and which raises and distributes donations from the private sector.
In reply to a question about the pile of bills awaiting Ramaphosa’s signature, spokesperson for the president Vincent Magwenya noted that over the past six weeks, Ramaphosa had received about 16 bills requiring his signature and about seven more were expected.
He said the president had to properly process the bills and apply his mind to them. He could not simply sign them by virtue of their having been passed by parliament.
ANC WHIP NOXOLO ABRAHAM SAYS MORE TALKS WILL TAKE PLACE ABOUT THE RESOLUTION