House Chair
The ACDP has studied the Report which basically doubles the upper limit of donations from R15 million to R30 million and the threshold fir disclosure from R100,000 to R200,000, and also to address the legal lacuna in the law following last year’s hasty legislative amendment.
Chairperson, I think the previous speaker, Hon. Ngobeni, very aptly illustrated that there are deficiencies with the IEC’s capacity to implement the provisions of the Political Funding Act. This is pointed out in the Report itself – that the IEC needs further capacity in this regard. It is deeply concerning when smaller parties like the ACDP disclose every donation, every membership and every donation-in-kind, when the same is not disclosed by other parties.
Chairperson, I would also like to affirm what Dr Mulder said about the impact on smaller growing parties that were severely impacted by what we believe was the unnecessary amendment to the party funding formula contained in last year’s Electoral Matters Amendment Act. We know this amendment was rushed through just before last year’s election and resulted in certain political parties receiving up to 50% less in state funding.
This, we argued then in a petition to President Ramaphosa, joined by almost every smaller growing party, was unconstitutional and, as Dr Mulder pointed out, breached section 236 of the Constitution which requires political party funding from the State on an equitable and proportional basis to enhance multi-party democracy.
Chairperson, as a result, parties are now required to engage in far more vigorous fundraising to make up the shortfall in state funding. However, many donors, in our experience, do not want their identities revealed due to concerns of intimidation or due to fears of losing state contracts. This is the “chilling factor” which was referred to earlier. As a result, the increase in the threshold will assist smaller growing parties to raise much needed funds; thus, in our view, contributing to multi-party democracy in the country.
Of course, this needs to be balanced with the need of accountability and transparency in political party funding, but the issue of party funding and the formula is a huge one that must still be addressed.
We welcome the fact (which the ACDP has also raised) that an assessment is being done on the IEC and we trust that the Electoral Reform Panel will also look into this matter, failing which we believe it should be pursued in court.
The ACDP will support this Report.
I thank you.
