STATEMENT: MVC RETURNS TO COURT FOR CASE TO ADDRESS THE LACUNA IN THE POLITICAL PARTY FUNDING ACT 

09 August 2024

For the past 3 months, we have been in a period of political party funding lawlessness.  On 8 May 2024, the President brought the Electoral Matters Amendment Act (EMAA) into operation, which amended the Political Party Funding Act (PPFA). Crucially, when the EMAA came into effect, it removed the previous limits on the R100,000 disclosure threshold and R15 million annual donation cap.  

Before the EMAA was brought into operation, MVC and other civil society organisations warned Parliament and the President that amending the PPFA in this manner - without simultaneously setting the disclosure threshold and the annual limit - would create a gap in the law.

Despite these warnings, the EMAA was signed into law, and for the past 93 days, donations of any amount could have been made to political parties or independent candidates, and there has been no legal obligation for parties or donors to disclose. The decision to create the environment for a political funding free-for-all was made weeks before the most consequential elections of the past 30 years.  

As a result of this entirely avoidable situation, MVC was left with no choice but to approach the court on an urgent basis to reinstate the previous financial thresholds until new regulations in terms of the EMAA had been passed. On 17 May, our urgent application was heard in the Western Cape High Court.  The court made a prima facie finding that there is indeed a gap in the EMAA, as the determination of a new disclosure threshold and upper limit is still pending.  The court directed, however, that interested parties should return on 12 August 2024 to make final submissions on why the requested relief should not be granted.  

On the return date hearing, MVC will argue (as is set forth in our papers) that, ‘without established financial thresholds, there is an ongoing risk of unregulated and undisclosed funding. The situation necessitates prompt intervention to maintain transparency and accountability in political financing’. Further, ‘every day that passes without these measures increases the risk of undisclosed and unlimited donations influencing political activities, and compromising the integrity of the democratic process’.

The case will be heard on Monday, 12 August at the Western Cape High Court.

Statement issued by My Vote Counts, 9 August 2024