FOLLOW THE MONEY
ANC treasurer-general Gwen Ramokgopa proposes amendments to Political Funding Act to keep wolves from door
The ANC has since 2018 experienced some serious financial problems which have landed the party in hot water with the Financial Sector Conduct Authority.
The ANC has had a number of plans in the pipeline to assist with its financial woes. Daily Maverick understands that the party’s treasurer- general Gwen Ramakgopa has now submitted proposals regarding the amendment of the Political Party Funding Act regulations.
The ANC’s National Working Committee (NWC) has discussed a way forward regarding the proposals and has given recommendations in that regard.
The plan is to mandate the ANC Parliamentary caucus to initiate and process a resolution in terms of Rule 119 of the Rules of the National Assembly. This will see the amendment of the regulations with regard to the thresholds and the limits relating to donations to political parties.
In terms of the Political Party Funding Act, which came into effect in April 2021, parties are required to disclose all donations of R100,000 or more. The Electoral Commission has been mandated to publish all the declarations made by the parties on a quarterly basis.
The Act has previously been referenced as one of the reasons why the ANC has been inconsistent with paying staff salaries.
The governing party has been unable to consistently pay salaries on time for the past two years, while the provident fund, unemployment insurance fund and medical aid contributions have not been paid since 2018.
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Read more in Daily Maverick: “The ANC, a tax evader? Massive debt, unpaid salaries, dry donation taps”
The ANC attempted a crowdfunding exercise which only presented a short-term remedy.
The Financial Sector Conduct Authority (FSCA) compelled the ANC to settle the estimated R85-million in outstanding and accumulated debt it owed its workers through a provident fund scheme.
The FSCA signed an enforceable undertaking with the ANC staff provident fund, requiring the party to pay R10-million into the fund each month until its accumulated contribution arrears were paid in full.
In September 2022, it was reported that the governing party had failed to pay the landlords of its merchandise store in Gandhi Square, Johannesburg. The ANC was reported to be in breach of its lease agreement, which has accumulated monthly rentals of more than R3-million.
Read more in Daily Maverick: “ANC staff picket for the first time since unbanning in 1990 as state reforms bite at party finances”
The party’s 55th conference financial report painted a bleak picture of the ANC’s bank accounts. The report states that the party has R555-million worth of liabilities while ANC staff salaries bill continued to rise.
According to the report, salaries account for 60% of the party’s total expenditure and the party has recently had to take out loans to fund its programmes and operations.
Six percent of the ANC’s income of R1.9-billion over the past five years has come from membership fees, while 58% has come from donations or fundraising income. DM