‘Act will cripple smaller parties’
DA worried about party funding law
Smaller parties will find it difficult to raise money to participate in the country’s multi-party democracy, according to DA’S CEO Simon Dickson.
Dickson was responding to the proclamation by President Cyril Ramaphosa of the Political Party Funding Act, which regulates public and private funding of political parties.
The act will commence on April 1, well in time for this year’s local elections.
In terms of the new act, political parties are required to disclose all donations received above the disclosure threshold of R100 000 to the Electoral Commission (IEC) regularly every three months.
The disclosures must be reported to parliament by the IEC. Donors are also required to disclose all donations above the disclosure threshold to the IEC within 30 days of donating. The act also prohibits donations to parties by foreign governments or agencies, foreign persons or entities, organs of state or state-owned enterprises (SOE).
However, Dickson was critical of the new act. “In reality, business donors who provide services to the state may think twice about possible victimisation when donating to parties other than the ANC,” said Dickson.
“While the Democratic Alliance recognises the good intention of the Political Party Funding Act, the unintended consequences look set to actually make it more difficult for smaller parties to raise funds, which are necessary to effectively participate in multi-party democracy.”
The EFF said the act was long overdue. “We are not surprised that it took Mr “seal the documents” Ramaphosa this long to sign what will evidently promote transparency about the flow of money,” said the EFF.
UDM leader Bantu Holomisa said his party has been calling for the act since 1999, adding that it was not a perfect legislation. “We hope [Deputy Chief Justice Raymond] Zondo will recommend what action must be taken where the ruling party has used companies such as Bosasa and SOES to channel billions of state monies to Luthuli House to sustain ANC and its leader.
“We hope such recommendations would enable parliament to amend the new legislation to make sure that public funds must never be illicitly used for party coffers,” it said.
The act will promote transparency about funding