STATEMENT: PARTIES DECLARE R172 MILLION IN WHAT MAY BE THE LAST FUNDING DISCLOSURE UNDER THE PPFA BEFORE THE IMPLEMENTATION OF THE ELECTORAL MATTERS AMENDMENT ACT
17 May 2024
We congratulate the Electoral Commission (IEC) for publishing the quarterly disclosures for the period 1 January to 31 March 2024 in terms of the Political Party Funding Act (PPFA). This timeous disclosure comes as the IEC prepares for the national elections on 29 May. It shows the IEC’s continued commitment to providing private funding information which is necessary for the exercising of an informed vote. The publication includes all disclosed private donations to political parties in the period to the value of R100,000 or more.
Donations have surpassed previous totals
The fourth quarter disclosures for the 2023/2024 financial year have seen a significant increase in the number of donors to political parties and the total amount of donations received in this period. At just over R172 million received in private donations, this is the first quarter where more than R100 million was declared. This may be indicative of one of the most highly contested elections since 1994 where increased political competition has taken centre stage.
Who is donating?
In an ongoing trend, a small group of donors have continued to donate vast amounts of money to a select number of political parties. Notably, Main Street 1564, a company owned by businessman Antony Ball, donated just over R26 million. These donations went to the Independent South African National Civic Organisation, the Democratic Alliance and Change Starts Now. Interestingly Change Starts Now, a registered political party who announced on 29 February that they would not be contesting elections, received all of its declared donations after it withdrew from the election race.
Repeat donors the Oppenheimer family (donations came from Nicholas Oppenheimer and his son Jonathan), Patrice Motsepe (African Rainbow Minerals and Harmony Gold), Capitec co-founder Michiel Le Roux (Fynbos Ekwiteit) and Martin Moshal have between them donated over R120 million. These five (5) individuals make up nearly 70% of all donations received! Over-reliance on a few monied individuals could open up the potential for undue private interest to take hold. It further underscores the need for South African politics to find alternate ways to fund itself which do not put it within reach of private influence.
The Multi Party Democracy Fund (MPDF) still offers one of the simplest ways in which the public may contribute to democracy in the spirit of robust and fair political competition, without having to donate directly to political parties or independents. The MPDF has historically not received many donations, but during the reporting period received significant donations from Vodacom (R5 million) and Exxaro (R25 million). Initiatives such as the MPDF can help reduce reliance on one or a few donors and has the potential to create a more equal playing field.
Transparency and accountability under threat
The Political Party Funding Act (PPFA) is meant to provide a framework for transparency and accountability in private donations to ensure that voter interests are preserved and not sold to the highest bidder. The continued reliance of political parties on an elite group of wealthy individuals underscores some of the weaknesses of the PPFA, which threaten transparent politics.
Interrelated donors are not tracked, and company trustees are not made public in these disclosures thus making it easy for donors to donate through multiple entities and to circumvent the R15 million upper limit.
This limit, has itself come under threat in the last week when President Ramaphosa brought the Electoral Matters Amendment Act (EMAA) into operation on 8 May. The EMAA immediately removed these limits, which are key provisions in the PPFA. As it stands now, parties and independents can receive private donations of any amount in the absence of any upper limit, and without any legal obligation to disclose these donations. This funding free for all may further entrench private interests who now can donate any amount they desire, all out of the public eye.
Compliance to and strengthening of the PPFA will bring us closer to a democracy where our politics is transparent and open, public representatives are accountable to the people and money is not used to influence decisions that should be made for the public good. These disclosures highlight the necessity of access to private funding information which is crucial for determining if the public’s needs will be heard or silenced by private interests.
Statement issued by My Vote Counts, 17 May 2024
