{"id":803665,"date":"2024-12-10T13:59:00","date_gmt":"2024-12-10T11:59:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=803665"},"modified":"2024-12-10T14:06:42","modified_gmt":"2024-12-10T12:06:42","slug":"anc-eff-and-ifp-want-looser-donation-disclosure-laws-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/government\/803665\/anc-eff-and-ifp-want-looser-donation-disclosure-laws-in-south-africa\/","title":{"rendered":"ANC, EFF and IFP want looser donation disclosure laws in South Africa"},"content":{"rendered":"\n<p>Several political parties and interest groups have called for increasing South Africa&#8217;s political donation threshold, which would significantly impact party funding transparency.<\/p>\n\n\n\n<p>The Portfolio Committee on Home Affairs is reviewing submissions on a resolution to grant the President the authority to set the upper limit and minimum disclosure threshold for donor funds that a political party or independent candidate may receive annually from a single donor.<\/p>\n\n\n\n<p>Currently, the Political Party Funding Act (PPFA) sets donation thresholds and requirements for parties to declare their external income. This includes a <strong>R15-million a year limit from a single donor and a R100,000 declaration threshold<\/strong>.<\/p>\n\n\n\n<p>The Electoral Matters Amendment Act (EMAA), signed into law by President Cyril Ramaphosa on 7 May 2024, amended the PPFA to allow independent candidates to run for positions in the National Assembly and provincial legislatures and access the Multi-Party Democracy Fund.<\/p>\n\n\n\n<p>However, it contained amendments that removed the disclosure thresholds in the PPFA, and the National Assembly failed to pass a resolution to close the gap before the elections.<\/p>\n\n\n\n<p>This resulted in a prolonged period of, as advocacy group My Vote Counts (MVC) described it, &#8220;party funding lawlessness.&#8221;<\/p>\n\n\n\n<p>These limits were reinstated by the Western Cape High Court.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-businesstech wp-block-embed-businesstech\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"oGyCsoAsic\"><a href=\"https:\/\/businesstech.co.za\/news\/government\/787844\/blow-to-secret-political-funding-in-south-africa\/\">Blow to &#8216;secret&#8217; political funding in South Africa<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Blow to &#8216;secret&#8217; political funding in South Africa&#8221; &#8212; BusinessTech\" src=\"https:\/\/businesstech.co.za\/news\/government\/787844\/blow-to-secret-political-funding-in-south-africa\/embed\/#?secret=ZKc7x8W90t#?secret=oGyCsoAsic\" data-secret=\"oGyCsoAsic\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<p>Now, the draft resolution that the Portfolio Committee on Home Affairs is working on is meant to address these gaps, and it has been receiving (some very opposing) proposals.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Call for more leeway<\/strong><\/p>\n\n\n\n<p>The committee received proposals from some political parties, namely the ANC, EFF, and IFP \u2013 who called for raising the limit and thresholds.<\/p>\n\n\n\n<p>Looking at the proposals from parties wanting to increase the limits and thresholds, these include:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><div class=\"table-responsive\"><table class=\"table\"><tbody><tr><td><strong>Party<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Upper limit proposal<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Proposed change<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Min. disclosure <\/strong><br><strong>threshold proposal<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Proposed change<\/strong><\/td><\/tr><tr><td>ANC<\/td><td class=\"has-text-align-center\" data-align=\"center\">R30 million<\/td><td class=\"has-text-align-center\" data-align=\"center\">+100%<\/td><td class=\"has-text-align-center\" data-align=\"center\">R200,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">+100%<\/td><\/tr><tr><td>EFF<\/td><td class=\"has-text-align-center\" data-align=\"center\">R100 million<\/td><td class=\"has-text-align-center\" data-align=\"center\">+566%<\/td><td class=\"has-text-align-center\" data-align=\"center\">R1 million<\/td><td class=\"has-text-align-center\" data-align=\"center\">+900%<\/td><\/tr><tr><td>IFP<\/td><td class=\"has-text-align-center\" data-align=\"center\">R25 million<\/td><td class=\"has-text-align-center\" data-align=\"center\">+66%<\/td><td class=\"has-text-align-center\" data-align=\"center\">R250,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">+150%<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n<p>Others, including the Congress of South African Trade Unions (COSATU) called for doubling the limit to R30 million.<\/p>\n\n\n\n<p>The ANC and COSATU argued that the existing R15 million upper limit on donations does not realistically reflect the operational and electoral costs they face, especially with rising inflation. <\/p>\n\n\n\n<p>The ANC also called for an increase of the threshold, lamenting the &#8216;administrative burden&#8217; of detailed disclosures, particularly for parties with extensive organisational structures.<\/p>\n\n\n\n<p>The IFP argued that it is highly challenging to run an organization and its campaigns solely on the IEC subsidy and membership fees.<\/p>\n\n\n\n<p>They said that while transparency is crucial for both public and private donations, it is important to recognise &#8220;that some private donors may hesitate to have their names publicly disclosed, potentially leading them to withdraw their financial support.&#8221;<\/p>\n\n\n\n<p>The EFF proposed a significant jump to R100 million, arguing a need to support expensive daily operations and election campaigns.<\/p>\n\n\n\n<p>The EFF also suggested increasing the minimum declaration threshold by 900% to R1 million, arguing that the current level exposes smaller parties and their donors to &#8220;unfair scrutiny and potential backlash.&#8221;<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-businesstech wp-block-embed-businesstech\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"lFKAsiCocy\"><a href=\"https:\/\/businesstech.co.za\/news\/government\/788398\/south-africas-richest-parties-by-declared-donations\/\">South Africa&#8217;s richest parties &#8211; by declared donations<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;South Africa&#8217;s richest parties &#8211; by declared donations&#8221; &#8212; BusinessTech\" src=\"https:\/\/businesstech.co.za\/news\/government\/788398\/south-africas-richest-parties-by-declared-donations\/embed\/#?secret=PHrkEhiqFq#?secret=lFKAsiCocy\" data-secret=\"lFKAsiCocy\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Don&#8217;t raise it<\/strong> <\/p>\n\n\n\n<p>While some called for the loosening of laws to allow for more funds and less transparency, others fiercely opposed these calls; calling for either lowering the limits, maintaining the threshold, or getting red of the threshold altogether to require full disclosure.<\/p>\n\n\n\n<p><strong>Keeping or lowering the limits:<\/strong><\/p>\n\n\n\n<p>My Vote Counts (MVC) specifically argues that a higher limit would allow affluent individuals or entities to exert disproportionate influence on a party&#8217;s decisions and policies, potentially undermining democratic principles and prioritising the interests of a select few over the broader electorate. <\/p>\n\n\n\n<p>It was MVC&#8217;s legal efforts that led to the mandating disclosure of private political party funding, which resulted in the enactment of the PPFA in the first place.<\/p>\n\n\n\n<p>The Southern African Catholic Bishops&#8217; Conference (SACBC) echoes this concern, advocating for retaining the current R15 million limit to prevent donors from unduly shaping party agendas<\/p>\n\n\n\n<p><strong>Maintain the threshold:<\/strong><\/p>\n\n\n\n<p>The SACBC advocated for retaining the current R100,000 threshold, arguing that it balances between ensuring transparency and aligning with voters&#8217; right to know about donor influence.<\/p>\n\n\n\n<p><strong>Eliminate the threshold\/full disclosure:<\/strong><\/p>\n\n\n\n<p>Meanwhile, MVC and Cosatu strongly advocate for full disclosure of all political donations, regardless of the amount.<\/p>\n\n\n\n<p>They argue that transparency is crucial for holding political parties accountable to the public and ensuring that voters are informed about the sources of party funding. <\/p>\n\n\n\n<p>Raising the disclosure threshold would obscure information about smaller donations, potentially concealing attempts to influence parties through a series of donations below the reporting limit.<\/p>\n\n\n\n<p><strong>Other arguments<\/strong><\/p>\n\n\n\n<p>Independent election and political analyst Michael John Atkins argued that the National Assembly resolution does not need to specify a fixed amount for the disclosure threshold, allowing the President to determine the appropriate limit.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"has-medium-font-size\"><strong>What&#8217;s next?<\/strong><\/p>\n\n\n\n<p>The Portfolio Committee on Home Affairs will review the motion on the donation limit and disclosure threshold due to mixed public opinions and unclear reasoning behind the current figures.<\/p>\n\n\n\n<p>Committee Chair Mosa Chabane emphasised the need for a scientific study by the Parliamentary Budget Office and National Treasury to guide the motion, balancing transparency with political parties&#8217; operational needs.<\/p>\n\n\n\n<p>The committee stressed that the motion should be fact-based, reflecting inflationary impacts and the costs of running campaigns and party affairs in the current environment.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>Read: <a href=\"https:\/\/businesstech.co.za\/news\/government\/803628\/the-law-dividing-the-gnu-and-the-clock-is-ticking\/\">The law dividing the GNU \u2013 and the clock is ticking<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The ANC, EFF and IFP want the disclosure limits for political donations to be raised significantly so that their donors don&#8217;t have to face public scrutiny.<\/p>\n","protected":false},"author":101,"featured_media":693591,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[19835,1916,21230,853],"class_list":["post-803665","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-government","tag-my-vote-counts","tag-parliament","tag-rty-funding","tag-south-africa"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/803665","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/101"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=803665"}],"version-history":[{"count":7,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/803665\/revisions"}],"predecessor-version":[{"id":803714,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/803665\/revisions\/803714"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/693591"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=803665"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=803665"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=803665"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}