Additional NPC Documents

Additional discussion documents: POLITICAL FUNDING AND ANC FINANCIAL SUSTAINABILITY

Political funding and ANC financial sustainability

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INTRODUCTION 1. We cannot have politics without money. We need strong parties to develop effective pub lic policies, to interact with and educate citi zens, and to campaign for office. But money is also dangerous. 2. Rich parties can buy votes and forget to talk to citizens. Donors can shape government policy and attempt to corrupt and pervert its procurement decisions. Personal or factional war chests can fuel internal divisions, fund vote buying in internal elections, and acceler ate factionalism. 3. A cycle in which power leads to money, and money leads back to power, can trans form democratic parties into battlegrounds in which factions so battle over access to resources. Ultimately money can corrupt a political system and, in the long term, destroy its political parties. challenging territory. The private funding of political parties is unregulated. Public fund ing is insufficient for the needs of our parties. Money plays a growing role in the internal politics of parties, including the ANC. 5. At its 52nd National Conference in Polok wane, the ANC resolved: “The ANC should champion the introduction of a comprehensive system of public funding of representative political parties in the different spheres of government and civil society organisations, as part of strengthening the tenets of our new democracy. This should include putting in place an effective regulatory architecture for private funding of political parties and civil society groups to enhance accountability The current situation 4. South Africa is moving into dangerous and

guidelines and policy on public and private funding, including how to regulate investment vehicles.” 6. The discussion document “Organisational Renewal: Building the ANC as a movement for transformation and a strategic centre of power” takes forward this resolution, propos ing that: “Unless we crack the perennial uncertainty about the ANC’s financial position, the strategic perspective and posture that the ANC is a strategic centre of power will remain meaningless. We need to develop new methods of achieving financial sustainability that are transparent, ethical, lawful and predictable. There is great improvement in financial reporting but more measures need to put in place to ensure accountability to the organisational structures.” 7. Three interventions are necessary. Firstly, we should expand the scope of public funding for political parties and their institutions, which carry out research, education and training work. Secondly, we need broaden the ANC’s investment portfolio through lawful and ethi cal participation in the economy. Lastly, ANC members need to fund their movement opti mally – from each according to ability. 8. Currently, the ANC has the following main sources of funding: a) member’s contribution b) donations, and c) business Investments 9. Reform options for formal party expenses and public elections five reforms areas (not mutu ally exclusive) need to be considered: a) the control of private donations; b) an increase in public funding; c) increase in membership subscription and membership contribution; d) expenditure limits; and e) the introduction of greater transparency.

and transparency to the citizenry. The incoming NEC must urgently develop

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