Electoral Commission Issues Party Funding 2nd Quarter Disclosure Report for the 2022_23 Financial Year

30 November 2022

The Electoral Commission today issues the second quarter party funding Disclosure Report for the current financial year. This report follows the five similar reports published since the promulgation of the new party funding law on 1 April 2021.

MULTI-PARTY DEMOCRACY FUND (MPDF) 

As we publish this report, the Electoral Commission would like to issue an impassioned plea to all corporates and citizens in South Africa, and where possible, beyond the borders of our country, to consider making contributions to the Multi-Party Democracy Fund (MPDF). This fund is one of two funds established with the introduction of the new party funding law to support and enhance multi-party democracy.

Despite its principles of equitable and proportional distribution of funding to all the represented parties, the MPDF is yet to make significant strides. It is exceedingly important that parties are sufficiently funded to ensure a culture of financial accountability and transparency within our political system. In a sense, the realization of these values which underpin our democratic system are dependent on parties being sufficiently funded through lawful mechanisms.  Citizens and corporates thus bear joint responsibility for ensuring that parties are financially supported to ensure a vibrant system of multiparty democracy. 

WHICH PARTIES HAVE DECLARED DONATIONS? 

A total of four political parties have declared donations totalling R 60 266 246.51 during the second quarter of the 2022/23 financial year. The four parties are as follows: 
* ActionSA – R 17 301 500.00
* African National Congress (ANC) –  R 7 500 000.00
* Democratic Alliance (DA) – R 35 314 746.51
* Economic Freedom Fighters (EFF) – R150 000.00 
As can be seen, one of the parties is an unrepresented political party, namely; ActionSA, and the three others are represented in the National Assembly and provincial legislatures.

HOW MUCH OF THE DECLARED AMOUNT WAS IN-KIND? 

Three political parties declared in-kind donations with a cumulative value of R 2 115 381.93. This is the largest amount of in-kind donations since the implementation of the law. The largest value of a single in-kind donation was declared by the Democratic Alliance (DA) at R1 663 221.93. This is followed by ActionSA’s at R 301 500.00 and R 150 000.00 declared by the EFF.

DA’s total in-kind donation is from Friedrich Naumann Foundation (FNF), which has up to now donated to the party every quarter. According to both the donor and the recipient, the in-kind donation from FNF was in the form of training and skills development for party members, which included Executive Coaching and Communications Training for the leadership of the party.

ActionSA’s in-kind donation was received from an entity known as Vincemus Investments (Pty) Ltd, and it is in the form involving the use of a multi-purpose motor vehicle over a period of two years. The value of the usage of the vehicle is estimated at R 12 560.00 per month.

EFF’s in-kind donation of R150 000 was received from an entity known as Twaabam (Pty) Ltd. The donation was in the form of food, transport, fuel and remuneration for the five people who were responsible for cooking.

FOREIGN DONATIONS 

The total value of foreign donations during the second quarter is R 2 364 746.51, all of which was declared by the Democratic Alliance (DA). Of this amount, the FNF made an in-kind donation valued at R1 663 221.93. The balance of R 701 524.58 was made by the Danish Liberal Democratic Programme (DLDP), which previously donated to the same party. This donation was, similarly used for training and skills development in the form of the party’s youth development programmes such as Young Leaders Third Training Retreat in Local Politics and Citizen's Participation and Political Leadership - Female Edition for DA members

In essence, all the foreign entities that made donations during the quarter under review were repeating donors and made their donations to the same party they donated to previously.

All these foreign donations were in compliance with the law in terms of what such donations can be used for.

SOME KEY OBSERVATIONS

This second quarter has demonstrated further lessons in the evolution of the party funding regime in the country. Firstly, the Commission will continue and even escalate the engagement with potential funders to contribute to the Multi-Party Democracy Fund. A low success rate in securing contributions into the Fund may render it ineffectual which negates the objective of enabling a broad range of stakeholders from this important aspect of promoting multiparty democracy.

Secondly, the total value of declared donations has spiked during the second quarter of the 2022/23 financial year. At more than R 60 million, this is the highest value of donations ever declared in any quarter so far. It appears from this reality that some of the political parties have already started looking into the future and are therefore already actively raising funds through donations for the forthcoming 2024 general elections. If this holds true, it is anticipated that the value of donations and the number of parties declaring donations will continue to show increases.

Thirdly, it is notable from this disclosure report that ActionSA, as a political party that is not represented in any of the provincial or national legislatures, is making progress with its funding raising efforts.

***

Statement issued by the IEC, 30 November 2022