IEC silent on investigation into ANC Ezulweni Investments Settlement

9 May 2024 

ActionSA notes with disappointment the silence from the IEC relating to its proclaimed investigation into the R102 million debt settlement with Ezulweni Investments.

Following the 12 March confirmation by the IEC Head of the Party Funding Unit confirming an investigation into the ANC, ActionSA wrote to the IEC again on 18 April to convey the imperative that the investigation be concluded before the elections. No response has been received to date.

The Constitutional Court was explicit about the fact that voters must exercise their choices with the information of how political parties are funded. Given that this investigation relates to the ANC's December 2023 declaration of the debt settlement, it is reasonable that the IEC should conclude this investigation ahead of the South Africans going to the polls on 29 May.

The IEC investigation follows ActionSA persistently raising the matter following the disclosures of R10 million in the quarter in which the ANC claims to have settled the debt. ActionSA’s contention in it's complaint to the IEC is that it was common cause that the ANC was unable to pay the salaries of striking workers last year. Its announcement, just a few months later, that it has settled R102 million in debt, with only R10 million of declared donations, produces the likelihood that the settlement was unlawful in terms of the Party Funding Act.

The necessity of this investigation relates principally to the rights of South Africans to vote with the requisite information about party funding, including if parties are funded by undeclared or elicit means. Additionally, it is about ensuring parties compete in a campaign on an even playing in terms of compliance of the Party Funding Act, given that parties in Parliament already have the advantage of R1.5 billion this year in state funding.

The IEC cannot ignore its obligations in terms of the Party Funding Act and nor can they limit their attention to harassing law-abiding political parties, that are making disclosures. When a party is operating beyond its declared means, like the R102 million debt settlement with R10 million donations disclosed, the IEC must act to defend the principle of transparency that underpinned the Constitutional Court judgement that paved the way to party funding legislation. The focus on who donates to political parties continues to miss the point that many political parties are campaigning in this election with levels of funding that are inexplicable against their disclosures.

As long as political parties, especially those with a propensity to commit the more serious crimes of fraud and corruption, continue to experience impunity for undeclared income, party funding legislation will only give South Africans a partial picture of the truth.

Issued by Michael Beaumont, National Chairperson, ActionSA, 9 May 2024