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ANALYSIS

Lack of assets declared by MPs raises questions — Is parliamentary register fact or farce?

The annual Register of Members’ Interests forces MPs to disclose their assets — as a vital tool to ensure accountability to the public. But do they take it seriously?
becs-register-interests Illustrative image: (From left) EFF leader Julius Malema has declared in Parliament’s Register of Members’ Interests that he owns no property or shares, as has DA leader John Steenhuisen. Former High Court judge John Hlophe, now a member of the MK party, has declared that he owns two farms, one of them a game farm. (Photos: Luba Lesolle / Gallo Images | Waldo Swiegers / Bloomberg / Getty Images | Ziyaad Douglas / Gallo Images)

Of the 17 political party leaders sworn in as MPs in the seventh Parliament, four own zero shares and no property.

That is according to the latest Register of Members’ Interests, in which all members of Parliament except the President are required to disclose various categories of assets, as well as gifts received throughout the year.

The EFF’s Julius Malema, the DA’s John Steenhuisen, the PAC’s Mzwanele Nyhontso and the National Coloured Congress’s Fadiel Adams all declared that they owned nothing at all when it came to shares or property in the latest register.

All four were asked by Daily Maverick for confirmation that this was the case, with only Steenhuisen responding to confirm that his disclosure was accurate.

Steenhuisen indicated on the register that he rents a property in Sea Point. The other three gave no indication of how they are housed, although all would be eligible for subsidised parliamentary housing in Cape Town and Nyhontso, as the Minister for Land Reform and Rural Development, would be eligible for ministerial housing.

A July City Press report involving alleged cruelty to an African Grey parrot, however, named Adams as a “homeowner” in Mitchell’s Plain. If so, there is no record of the property on Adams’ disclosures. 

Records of property ownership nationally are available on multiple databases – meaning that public representatives fudging the truth for whatever reason are playing a high-risk game. 

Parliament’s spokesperson Moloto Mothapo confirmed to Daily Maverick that the disclosure of assets is effectively an honour system.

“The disclosure system requires of members of Parliament to act truthfully and with integrity when disclosing their financial and registrable interests,” Mothapo said.

He also noted: “Since members of Parliament input their own information into the system, there is potential for typographical errors or unintentional omissions during the data entry process”.

If a complaint is laid with Parliament regarding the veracity of an MP’s disclosures, the Registrar instructs the relevant MP to respond in writing and thereafter, if necessary, carries out an investigation. If the MP is found to have breached the code of ethical conduct, they can be docked a month’s salary or face other penalties, including being barred from debates and committees for a period.

MPs make ‘financial sacrifices’ to be MPs

Attempts by Daily Maverick this week to clarify numerous confusing or seemingly partial disclosures on the register elicited some defensive responses.

We asked Action SA MP Lerato Ngobeni if she could clarify why she declared that she owned no property, but also that she derived income from a rental property – a seeming contradiction.

Ngobeni said: “The rental property referenced in my declaration is not in my name but pertains to family-owned properties. The rental income from these properties is deposited into my account as a longstanding arrangement established during my tenure as a councillor in the City of Johannesburg to supplement my income.”

Ngobeni said our queries reflected a “misunderstanding of the financial realities faced by public representatives”, whose salaries are subject to deductions on “taxes, additional party contributions/tithes, mandatory pension and medical aid contributions and constituency-related expenses”.

She added: “The inflated perception of ordinary MPs as excessively wealthy is both misleading and damaging. Many of us must seek additional income to support our families while fulfilling our public duties. To imply otherwise is not only unfair but undermines the genuine sacrifices made by those of us committed to serving our nation.” 

MP salaries start at R1.2-million a year.

According to tax data from 2022, just 1.6% of the South African population earns more than R1-million a year, while the majority – 55,5% – live off less than R1,335 a month.

MPs receive significant additional perks beyond their salaries, as reported by Sunday Times in June 2024.

These include being eligible for parliamentary housing with rentals of R250 (maximum) a month, free transport to Parliament, free electricity and water, free 24-hour protection and free pupil transport to any school in Cape Town. They receive a minimum of 88 free domestic flights per year, a free laptop and mobile phone and reimbursement of communication costs.

In support of Ngobeni’s narrative, however, there are a surprising number of MPs who have disclosed taking sizeable cash loans from friends or unnamed individuals.

One, ANC MP Nobuhle Nkabane, declared an “interest-free loan” from a friend of R570,000.

Farming the side hustle of choice for today’s MPs

Many longstanding MPs appear to have been able to build up significant reserves in terms of property and shares. Others have ongoing side hustles, which is allowed with the permission of their party’s Chief Whip as long as it does not represent a conflict of interests.

One MP, the ANC’s Onica Medupe, has disclosed a sideline income stream which is almost certainly not permitted: a property she owns in Koster, North West, which was rezoned to commercial property and is “currently rented out to the Department of Health in the North West”.

Parliament’s rules on ethical conduct and members’ interests state that MPs “may not enter into a tender or a contract for the provision of goods or services with an organ of state”.

At least 34 MPs have a sideline in some kind of farming.

A newbie MP who has benefited from years of another generous state salary, MK’s John Hlophe, disclosed owning two farms – one a game farm in Paarl. (Hlophe was formerly on a High Court judge salary, prior to his impeachment, of around R1.8-million annually.)

Hlophe’s disclosure is in marked contrast to that of his MK colleague Duduzile Zuma-Sambudla, daughter of Jacob Zuma, who has disclosed precisely nothing: no shares, no loans, no property, no other businesses, no income-generating assets, no trusts. 

At least four MPs dabble in the taxi industry; two further have liquor stores on the side.

Gifts to MPs have dried up

On the evidence of this year’s register, gifts to MPs have significantly diminished in both quality and quantity – either a reflection of the general austerity climate of the moment or of less than diligent disclosures.

On the basis of the disclosures, DStv’s parent company MultiChoice emerges as the most generous corporate in the country, having flown at least four MPs to the 2023 Rugby World Cup in France, including current Minister of International Relations and Cooperation Ronald Lamola. 

ANC MP Bertha Mabe – the current deputy minister of Sports, Arts and Culture – enjoyed a jaunt to Moscow Film Week sponsored by the Russian government. 

It’s always a tight race, but possibly the least enviable gift to feature on the register this year: Deputy President Paul Mashatile received a framed photo of Prince Edward – from Prince Edward. DM

Comments

William Kelly Nov 27, 2024, 04:07 AM

Such out of touch comments by Ngobeni might suggest that she sees her rental income as tax free. Wonder if she declared it to Mr Kieswetter?

Robert Pegg Nov 27, 2024, 06:29 AM

When a public figure refuses to disclose information, they must be hiding something. Well done to Daily Maverick for the article. Keep up the good work.

basilthomas19 Nov 27, 2024, 06:35 AM

Malema owns assests he has a big mansion in hydepark johannesburg 1 of the richests suburbs in gauteng ejy not declare unless you got something to hide!!

D'Esprit Dan Nov 27, 2024, 09:32 AM

I think it's his 'tobacco benefactor' who legally owns that carbuncle, isn't it?

D'Esprit Dan Nov 27, 2024, 09:44 AM

Hmmm, Nobuhle Nkabane's R570k 'interest-free loan from a friend', is very similar to the amount our Justice Minister gouged from VBS for her 'coffee shop'. Needs a bit more digging!

n.litton Nov 27, 2024, 06:42 AM

Some of our MP's need some advice. If you don't own the property you can't earn rental income. You receive a monthly donation from the owner of the property who receives the rental income.

virginia crawford Nov 27, 2024, 08:38 AM

And need to pay tax on it.

louw.nic Nov 27, 2024, 10:44 AM

Donor is liable for donations tax, not the donee. That being said, if the donor DOES NOT pay the tax to SARS when due, the donor and donee are jointly and severally liable (together and individually for the entire tax amount).

laruelle_ Nov 27, 2024, 03:31 PM

would that be severally or severely? even wording at sars says severally?

Kevin Venter Nov 27, 2024, 06:58 AM

It should be standard practice to run every minister's ID number through the systems to get the trusts, businesses and properties owned by that ID as well as linked family members. Any minister who didn't declare that ownership should be held accountable.

Grumpy Old Man Nov 27, 2024, 08:01 AM

Kevin, that's the irony of all of this - these systems exist and are used by commercial deposit taking institutions everyday to check 'source of income' - whether you are a Bank, Car Dealership, Estate Agent etc. The veracity of disclosures are easily verified

D'Esprit Dan Nov 27, 2024, 09:45 AM

Amen!

Fanie Rajesh Ngabiso Nov 27, 2024, 07:03 AM

MPs - Is it so hard to do what is right? To simply be honest? To do what is required by your role? Be part of the solution not the problem. (And speaking of disingenuous, this article seems at odds with the image of John S being firmly associated with the negative title)

Paul Botha Nov 27, 2024, 03:13 PM

They had to place a picture of a whitie there so that it did not appear racist.

Martin Nicol Nov 27, 2024, 07:06 AM

One of the questions is about the size of property owned. “Normal” is the standard answer given by MPs!

paulwannenburg Nov 27, 2024, 07:29 AM

Really expect any veracity from these “Honourable Members”. Farcical.

Alastair Sellick Nov 27, 2024, 07:30 AM

Hahahahaha. Thanks for an amusing end to an extremely concerning article. There's no surprise that our MPs don't actually honour the laws they foist upon the Citizenry. Time to hold them accountable again - keep up the good work, Daily Maverick.

Grumpy Old Man Nov 27, 2024, 07:49 AM

Lets get this straight - you have an 'honour system' which you only test if there is a complaint and which carries a max penalty of one months salary? MP's can then without fear do business with the state via a family member with only a single degree of separation from themselves?

virginia crawford Nov 27, 2024, 08:41 AM

Well put. A ludicrous situation. A British MP was booted out for claiming expenses for a duck pond!

andij8537 Nov 27, 2024, 12:14 PM

Voters and taxpayers approve

Jubilee 1516 Nov 27, 2024, 08:15 AM

At last, a DM article not involving Trump.

D'Esprit Dan Nov 27, 2024, 12:58 PM

And yet, you lower the tone by bringing him into it!

Skinyela Nov 27, 2024, 08:31 AM

It is clear that some MPs did not fill the declaration forms themselves, some seem to not understand the questions... It's like being asked "how old are you?" and you say "I am a male"

bloemi Nov 27, 2024, 08:31 AM

Ms Ngobeni You are insulting the man in the street with your piffle. If you find it so difficult to survive on an MP's salary, resign and join the real world.

virginia crawford Nov 27, 2024, 08:37 AM

An honour system in our parliament? Like implementing a queuing system in a sty! 88 Free flights a year - more than 1 a week - no wonder they have no time to work.

Peter Dexter Nov 27, 2024, 08:44 AM

We now have the "beneficial ownership" concept to reveal assets hidden in trusts; that should reveal a bit more.

Lynda Tyrer Nov 27, 2024, 09:11 AM

No ways will most be honest.

D'Esprit Dan Nov 27, 2024, 09:29 AM

"In support of Ngobeni’s narrative..." taking a R570k 'loan' is not supportive of an MP struggling to make ends meet - it is entirely indicative of either living wildly beyond their means, or being corrupt to the core and being paid off. The perks must add at least 25% more to salaries.

Nov 27, 2024, 09:42 AM

Definition of an oxymoron? How about Honorable Members of Parliament? A title tossed around with impunity when addressing each other. John Steenhuisen (as the only responding parliamentarian to the questions), appears to be the only Honorable member here. My heart bleeds for Nogobeni's poverty.

johnbpatson Nov 27, 2024, 10:06 AM

Not owning property, but owning parts of a company which owns property, has been used as a tax / inheritance dodge for years. Expect that is where the "not owning any property" declaration falls. Bit like not owning a swimming pool but owning a fire water reservoir -- very sleazy.

Les Thorpe Nov 27, 2024, 10:32 AM

I can't believe that we expect politicians to declare all their assets, to tell the truth so to speak. Politicians are mostly scammers, fraudsters, thieves, extortionists, etc., and many have interests in the various mafias in S.A., e.g. the taxi mafia, the construction mafia, etc.

louw.nic Nov 27, 2024, 10:46 AM

“Politicians and diapers must be changed often, and for the same reason,” (often misattributed to MArk Twain)

Rob Alexander Nov 27, 2024, 10:56 AM

These disclosures are critical in the fight against corruption. SIGNIFICANTLY heavier sanctions are needed for non-compliance.

virginia crawford Nov 27, 2024, 09:00 PM

Couldn't agree more.

cathy.wardle Nov 27, 2024, 12:03 PM

Using truthfully and with integrity in one sentence is a total misnomer

mandy.temle Nov 27, 2024, 01:40 PM

Gee, R12 million a year - not enough to live on !! Wish I could try live on that !!!

mandy.temle Nov 27, 2024, 01:42 PM

Please ignore my previous comment, I read the 1.2 million salary as R12 million

Kevin Venter Nov 28, 2024, 06:20 AM

Your point still stands. Even 100K a month is more than enough to live on. I saw a statistic just the other day indicating that 55% of the population are living on R1,500 per month or less. Let that sink in. 30 years of stealing and wasting money instead of growing the economy, jobs and wages. FAIL

J5.crowth Nov 27, 2024, 02:41 PM

Great article - I enjoyed reading this actually. Wish the register also made provision for MP's to declare their membership in other associations ie clubs, churches, cults etc.

virginia crawford Nov 27, 2024, 09:01 PM

The cult of greed perhaps?

Stirling Kotze Nov 27, 2024, 03:16 PM

Every MP/Minister should be required to fully & accurately disclose all their assets/business interests. Any individual member/minister should be subject to subsequent independent audits should the need arise. An 'honour' disclosure system will not suffice in a country rife with corruption.

Kevin Venter Nov 28, 2024, 06:22 AM

Using John Steenhuizens picture and linking it to the title of the story is trying to use sensation for click bait. Since JS is the only minister to confirm his entry, why is that not the headline instead of portraying it in the negative.

Craig A Nov 28, 2024, 07:43 AM

JS declared he has NO assets! Then he is as corrupt or as stupid as the rest of them. I have zero faith in him now.

Kevin Venter Nov 28, 2024, 08:29 AM

You assume that he is summarily lying. What if he IS telling the truth? Lets see if DM does a fact check and if he is lying, then let him also be called out and the same consequences applied to ALL the ministers who have conveniently omitted stuff.

Philippusjpotgieter Nov 28, 2024, 06:53 AM

If you enjoy the right/benifit of rental income, you're the benificial owner. So Ngubeni's answer is flawed. She has a vested interest. Why were everyone else in the country expected to declare BO with CIPC, but politician are afforded the luxury of honesty?