INTRODUCTION: ANC POSITION ON PPFA

1. INTRODUCTION: ANC POSITION ON PPFA • Law is a practical expression of the ANC’s commitment to constitutional values of fairness, equity, accountability and transparency It will deepen democracy , protect our sovereignty and usher in a new culture of transparent funding for political parties. • For many years we drove this process in our conference resolutions and in parliament. • The integrity of who we are as a party in government will attract elements who seek to manipulate, influence and remove the will of the majority away from the ANC • The ANC will support the IEC to successfully implement the Act and Regulations at the earliest possible time, and we urge the IEC to consider what it will take to successfully implement the draft Regulations by addressing issues of IEC and parties’ capacity, the practicality of systems and requirements and the need for education and training for parties, the public and donors. . • Political parties are the main vehicles for public participation in democracy and for effective representation of different constituencies and communities. To do this parties need as many branches and members as possible. The ANC has about 4 700 branches and around 1m members. 95% of them are volunteers. • The purpose of the Act is to enhance democracy by regulating party funding and to deal especially with limiting the influence of large donors and foreign entities

2. Some practical considerations • Parties rely overwhelmingly on volunteers who raise funds at every level – In the ANC from branch, sub -regional, regional, provincial and national level. Much of the funding is small donations made by members or supporters, or in kind (for example petrol or sandwiches for election day workers). There are literally hundreds of thousands of in kind and nominal cash donations and the majority of them are not captured as individual donations in a national accounting system. Branches raise funds for their own needs and have around 4 700 branch bank accounts for the funding they raise. Some branches raise only a few hundred rand and more successful ones a few thousand per year • It was not the intention of parties in parliament that these kind of donations should be regulated but that big donors and foreign donors should be disclosed and limited to curtail undue influence. We have staff and offices at regional, provincial and national level. All have bank accounts that may get bigger donations and can be more easily linked to the national account as they are staffed and supported from by national office. Funds raised could be captured and aggregated nationally to see if any large donors are approaching the R100 000 disclosure threshold • Doing this for all branches is extremely onerous for parties and the IEC. The ANC and other larger parties have expressed this and it will be even more difficult for smaller parties

3. Donor uncertainty about disclosure and the obligations on them may affect funding • Donors are already nervous about falling foul of the Act and it was difficult for all parties to raise money in the last elections. It is possible that fundraising will become tougher • MPDF is meant to deal with donors who want to be neutral or wish to remain anonymous but regulations as they are now and amendments to PAIA may defeat this intention. • MPDF also currently offers no possibility of tax free donations • We are already are under-funded to maintain our own democratic processes, our relationship with the people, oversight over those in government and our campaigns for elections. Democracy is not cheap and parties are crucial players in a democratic system. • Many provinces also provide some support for political parties – this will stop under the new Act and all parties will receive much less than before unless budget vote at national level is increased • If the Act and Regulations limit funding sources, only the fiscus will be able to fill the gap

4. CONCLUSION AND PROPOSALS The ANC supports the expeditious implementation of the PPFA and the vast majority of the regulations. We also support an approach that is well planned, realistic, effective and sustainable. • Regulations must give effect to the PPFA – not go beyond it and properly deal with amendments. • Regulations must recognise the different realities under which political parties operate and the practical challenges they face: big or small, national and regional, unitary or federal • Avoid un-implementable Regulations that attempt to cater for every eventuality and scenario. This will discredit and undermine the core objectives of the PPFA • PPFA regulatory cloth must be cut according to the capacity of both IEC and political parties. • Avoid an overly complex system that discourages donations and drains public resources into compliance - away from promoting multi-party democracy and desperately needed services. • Proceed as fast as possible and as slowly as necessary. Avoid discrediting this important attempt to strengthen our constitutional democracy through rushed and botched implementation. • PPFA implementation requires careful co-ordination and sequencing of public education, capacity building, establishing systems and institutions, and allocation of public funding for political parties.

5. PROPOSALS: • IEC should develop a PPFA implementation plan and roadmap taking into account the inputs of parties, including through regular submissions to the National Party Liaison Committee. • Party funding under the existing RPPF should be increased to allow for the development of capacity to implement the PPFA and to compensate for the loss of provincial legislature funding Proposals regarding Regulations: • The MPDF should be set up to allow tax breaks and the issue of anonymity should not be overly complex to implement • Parties should disclose all donations above R100 000 but should not be expected to report and nationally aggregate small donations in cash or in kind from branch level. • Reporting periods should be once every three months, with a three month period between month end and reporting. • Reporting of donations, membership fees, income, should be done where parties have capacity: at national level, after reports from provincial and regional level. • Simplify disclosure requirements for donors. Don’t discourage donations through complex declarations on forms. IEC can investigate specific cases and complaints as needed.