Report on the Political Funding Act regarding the upper limit and disclosure of donations to political parties, independent candidates, and independent representatives
Speech by ACDP MP, Steve Swart

Issued by the ACDP Parliamentary Media Office

Smaller growing parties severely impacted by unnecessary amendment to party funding formula

May 20, 2025

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.

The Speaker should protect the institution of Parliament

The Speaker should protect the institution of Parliament

Madam Deputy Speaker, on the 8th of May the Constitutional Court found in the Phala Phala matter that Parliament had failed in its constitutional duty of holding the President to account. It instructed Parliament to continue with an impeachment inquiry, emphasising...

The budget should reflect our deepest priorities

The budget should reflect our deepest priorities

Honourable Speaker, the ACDP believes that when you look at our budget, we should be looking at it as far more than just a ledger of income and expenditure. We should also consider it from a moral perspective. The budget should reflect our deepest priorities and how...

The Impeachment Committee must proceed with its work!

The Impeachment Committee must proceed with its work!

ACDP Parliamentary Whip and member of the Impeachment Committee, Steve Swart MP, has expressed deep disappointment at National Assembly Speaker, Thoko Didiza’s, decision to not oppose President Ramaphosa’s urgent application to interdict the Impeachment Committee from...

Illegal sand mining threatens public safety

Illegal sand mining threatens public safety

House Chairperson, the ACDP believes that this oversight report presents both the opportunities and challenges facing South Africa's mining and energy sectors. While the report highlights significant economic and potential in the Eastern Cape and KwaZulu-Natal through...