Latest news with #PoliticalPartyFundingAct
The South African
01-07-2025
- Business
- The South African
Here's who donated to SA's political parties in Q4
South Africa's political parties declared nearly R231 million in private donations during the 2024/25 financial year, according to the Independent Electoral Commission (IEC). However, new legislation threatens to dilute transparency just as the country approaches the 2026 local government elections. The IEC's latest quarterly disclosure report shows that R14.19 million was declared in the fourth quarter (January-March 2025), a notable dip reflecting ongoing trends of lower contributions outside election periods. Only three parties – the ANC, Democratic Alliance (DA), and ActionSA – made disclosures during this period. ANC : R7 million R4 million from Chancellor House Trust R3 million from Naspers Limited (Chancellor House has donated R11 million in 2024/25 — still under the R15 million legal cap) : DA : R6.19 million R3 million from Naspers R1.04 million (in-kind) from the Friedrich Naumann Foundation (FNF) for internal training and strategy R743,687 from Main Street 1564 Smaller contributions from Polyoak Packaging, DKS Cleaners, and private individuals : ActionSA : R1 million From African Equity Corporation (Pty) Ltd : The Political Party Funding Act (PPFA), enacted in 2018 and enforced from 2021, was a landmark law meant to regulate and increase transparency in party financing. It: Required donations above R100 000 to be disclosed to be disclosed Capped annual donations from a single source at R15 million Banned funding from foreign governments and state-owned entities Introduced public funding via the Represented Political Parties Fund and Multi-Party Democracy Fund (MPDF) However, this framework is now under threat. Earlier this year, Parliament passed a resolution – not yet enacted – to double both: The minimum disclosure threshold to R200 000 to The maximum annual private donation limit to R30 million per donor This is despite criticism from civil society and findings by the Parliamentary Budget Office (PBO) that South Africa's R15 million cap already made it an international outlier in donation limits. Civil society watchdog My Vote Counts (MVC) has fiercely criticised the proposal and has filed legal action to block it. The group said the changes are 'a step backwards for democracy' and undermine the public's right to access information on political funding. 'If the president signs off on this, it will lead to greater secrecy just as South Africa prepares for another heated election cycle,' MVC said. 'It's a fruit of the poisoned tree.' While parties like the ANC and DA consistently report large donations, the EFF and MK Party – both major players in the 2024 elections – declared R3.2 million and just R380 555, respectively, in the entire 2023/24 cycle. These low figures raise red flags about undeclared funding and enforcement loopholes. With municipal elections looming in 2026 and campaign activity ramping up, political donations are expected to increase – but transparency may decrease if the president enacts the Parliamentary resolution. Despite tight finances, no increase in public party funding has been approved for 2025/26, making parties more dependent on private backers. Yet, without robust regulation, civil society fears the system is becoming more opaque and vulnerable to undue influence. Total 2024/25 declared donations : R231 million : R231 million Top Q4 donor : Naspers (R6 million combined to ANC and DA) : Naspers (R6 million combined to ANC and DA) Donation threshold (pending change) : R100 000 → R200 000 : R100 000 → Annual cap (pending change): R15 million → R30 million Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
Eyewitness News
20-06-2025
- Politics
- Eyewitness News
Symposium thrashes out solutions to strengthening political funding law
CAPE TOWN -The influence of donor funding on the country's political landscape is one of the public concerns under discussion at a symposium on political funding underway in Durban. The symposium aims to put forward proposals to Parliament on how to strengthen the political funding law that is still under regular contestation from civil society groups. Just last month, Parliament decided to double the annual limit for receiving private funding to R30 million a year. READ: Godongwana thinks political parties should be wholly funded from national fiscus As the oversight body for the declaration of donor funding, the vice chairperson Electoral Commission of South Africa (IEC), Janet Love, said ahead of next year's local government elections, concerns have been raised that the Political Party Funding Act does not cover parties that only contest at local level. Seventy percent of respondents in a Human Sciences Research Council study said they were worried about the transactional nature of politics and capture by the elite who fund political parties. Love said the income of political parties and not their expenditure, has until now dominated the discourse on political funding. "The expenditure in campaigns, which has a more immediate effect on enabling a level playing field on the one hand and a more important impact on election outcomes is not the focus at the present." Love said despite political parties being required to submit regular reports on their funding sources, there are shortcomings in monitoring and investigating compliance as well as enforcement of the law.
The Citizen
27-05-2025
- Business
- The Citizen
Should you be worried about changes to political party funding?
Parliament has doubled the original donation disclosure threshold and annual limit. Ballot papers are seen as voters casts their votes at Welizibuko Primary School in Soweto on 29 May 2024. Picture: Michel Bega/The Citizen Analysts are not surprised by the decision to raise the donation disclosure threshold and annual limit in the Political Party Funding Act (PPFA). This follows the National Assembly's adoption of a report from the portfolio committee on Home Affairs. The report proposes doubling the current threshold for disclosing donations to political parties — from R100 000 to R200 000 — as well as raising the annual donation cap from R15 million to R30 million. Political Party Funding Act amended The proposed changes follow the signing of the Electoral Matters Amendment Act (EMAA) into law by President Cyril Ramaphosa in May 2024. The EMAA revised the PPFA, removing the original disclosure threshold and donation limit altogether for declarations to the Electoral Commission of South Africa (IEC). This loophole was challenged by the non-profit organisation (NPO) My Vote Counts, leading to a Western Cape High Court ruling that ordered the reinstatement of the previous limits and required parliament to determine new figures. ALSO READ: 'It's a waste of people's time': Politicians argue about party donations The president is empowered to implement regulations related to these thresholds. However, this must be done through a resolution adopted by parliament. Now that parliament has acted, concerns have emerged about the implications for political transparency and accountability, especially around private funding in politics. Analysts weigh in on political party funding threshold hike Political analyst Ntsikelelo Breakfast weighed in on the rationale behind doubling the threshold and donation limit, considering the Parliamentary Budget Office (PBO) previously concluded there was no basis for the initial figures of R100 000 and R15 million. The Nelson Mandela University senior lecturer noted that the PPFA was enacted in response to a court ruling compelling political parties to disclose their sources of funding. 'This is not their brainchild. They've been forced by circumstances to account on the principle of transparency. 'Many political parties argue that this legislation has really dealt them a blow in a big way because now they have to reveal their funders,' he told The Citizen on Monday. Breakfast also highlighted the financial pressure the legislation may have placed on some political parties, particularly the ANC, which has previously faced difficulties in paying staff salaries 'To me, that justifies why the numbers have gone up and why none of them is opposed to that.' READ MORE: Why South Africa's youth voters are staying away from the polls The PBO had recommended inflation-adjusted thresholds of R122 000 for disclosure and R21 million for the annual donation cap. In light of this, North-West University professor André Duvenhage described the decision to double these amounts as 'very arbitrary'. 'There's a huge need for getting more and more money and that is the main reason for the adjustments, but there can be no specific rationale for just doubling the R100 000 and R15 million. 'If they work with inflation, it will be quite a different figure. So I can read a lot of political motives. I can see the ANC specifically in trouble,' Duvenhage told The Citizen. Transparency and financial pressures Duvenhage suggested that both the ANC and the Economic Freedom Fighters (EFF) might be under financial pressure due to the PPFA, but smaller parties are even more disadvantaged. The political analyst also noted that many parties are not fully transparent about their financial backing. He further expressed concern that the increased thresholds might open the door to greater private—and even foreign—influence in South African politics. READ MORE: 'Can you imagine our system being hacked': MPs sceptical of IEC's e-voting proposal 'I think this might be the political party environment a lot more vulnerable in that sense.' Breakfast echoed similar sentiments. 'Why do you want to engage in certain political operations in private, but you say that you are for the public? Why do you discuss money in private?' Has the Political Party Funding Act worked? When asked about the effectiveness of the PPFA since its implementation in 2021, Breakfast emphasised that the law has increased voter awareness about the sources of political party funding. He cited instances where parties like ActionSA and Rise Mzansi had received support from the Oppenheimer family, and stressed that the legislation empowers voters by enabling more informed decisions at the polls. 'Now we know what is the agenda because of this legislation,' Breakfast said, adding that voters can 'connect the dots' when evaluating party policies. Duvenhage stated that he believed there was 'a lot of room for misconduct' prior to the law's enactment. 'I think in comparison, the dispensation post-2021 was better than the one pre-2021.' Legal and constitutional dynamics A key question now is whether the president has the authority to reject or revise the amounts adopted by parliament. Breakfast referenced the doctrine of separation of powers in response. 'Nothing can be done without the buy-in from legislature. Secondly, there is no legislation that can be rolled out or can be implemented without the authorisation of the president.' He added that dissatisfied members of parliament could challenge such laws in court. 'That's how our democracy is arranged.' Duvenhage highlighted the uncertainties in how parliamentary rules are sometimes applied. 'I think it's a bit of a grey area, but if we work with the principle of separation of powers, that the president should obey the line that was identified through parliament, and he should implement that in terms of a general decision, he can't take his own decision.' NOW READ: More time for IEC commissioner nominations
Eyewitness News
19-05-2025
- Business
- Eyewitness News
Budget speech 3.0 to be delivered on Wednesday
JOHANNESBURG - The budget speech will be among the highlights of this week as part of the parliamentary programme, which also includes another grilling of the security cluster ministers by members of Parliament (MPs). All eyes will be on Finance Minister Enoch Godongwana when he returns for a third attempt to table the budget at the Cape Town International Convention Centre on Wednesday. The last two budgets, in February and March, were rejected by most parties because of abandoned value-added tax (VAT) increase proposals. While MPs are familiar with the Cape Town International Convention Centre after being sworn in at the venue last year, it will be the first-ever budget speech to be tabled there. ALSO READ: Godongwana's budget speech delivery will also touch on other money bills like the Division of Revenue and Appropriation bills when he presents a revised fiscal framework minus the VAT increase. Godongwana will also outline how resources will be allocated to address the government's priorities, and provide a growth forecast and projected GDP. Parliament Spokesperson, Moloto Mothapo, explains the process. "In the National Assembly, the fiscal framework will be considered on the 11th of June and must be adopted by a majority of members present in terms of the voting requirements. The division of revenue bill, which allocates funds across the three spheres of government will follow on the 26th of June and requires the support of the majority of the national assembly.' Political party funding also makes a return this week, with the National Assembly to consider the portfolio committee on Home Affairs report on the Political Party Funding Act and the upper limit and disclosure of donations to political parties and independent candidates.
The Citizen
24-04-2025
- Politics
- The Citizen
Why South Africa's youth voters are staying away from the polls
Youth disillusionment, political mistrust and lack of opportunity are keeping millions away from the polls, raising concerns about the future of SA democracy. Despite the youth population continuing to grow, voter apathy among them continues to worsen – something that the Electoral Commission of South Africa attributes to the lack of opportunities. The commission said fewer political parties had declared their donations above the R100 000 threshold compared with the period leading to the 2024 national and provincial elections. Parties are expected to declare any donation above the threshold. Donations by state organs, state-owned enterprises and foreign governments and foreign government agencies are prohibited in terms of the Political Party Funding Act. High youth population, low participation StatsSA figures quoted by the IEC indicated that between 1996 and 2022, the total youth population rose from 14.7% to 21.6%, a 6.9% growth. ALSO READ: 50 000 fewer jobs and less money: Here's how much you will now earn if you join the presidential youth employment programme The census also showed that young people in the 18-34 age cohort constituted a third of the country's total population. But all that has not translated into an increase in youth voters or youth participation in the electoral process. While the total registered voters stood at 27 654 830 as of 22 April, young people aged 18 to 35 years constituted a mere 28% of the voters' roll. Trust deficit fuels disinterest IEC deputy CEO, electoral processes, Masego Sheburi said young people had disproportionately fewer opportunities to register as voters. They also had concerns regarding how they experienced democracy. ALSO READ: More than a million applications for just 44 000 school job opportunities 'Related to that is a strong mistrust of the key political institutions such as political parties and governance institutions. Those are key political issues that drive abstention from the electoral process and it's not that they are disaffected or are not interested in the election,' Sheburi said. Election results analyst Michael Atkins shared the view, firmly believing that political parties were partly responsible for the youth apathy. 'Surging voter fatigue' Policy analyst Nkosikhulule Nyembezi said: 'The GNU partners' petty squabbles and their advancement of narrow political party interests spell trouble for ordinary people and are diminishing voter confidence.' 'With so much turmoil in our electoral politics lives, it is little wonder that South Africans are experiencing surging voter fatigue and declining participation rates in electoral politics.' NOW READ: Ramaphosa urges ANCYL to attract young voters, tackle youth unemployment
