Additional NPC Documents

Additional discussion documents: POLITICAL FUNDING AND ANC FINANCIAL SUSTAINABILITY

transparency. From a fiscal point of view, it is possible to increase the funding allocated to political parties going forward, although this would imply a shift in resources from other important public priorities. 57. Given that party funding would constitute a re current expenditure it would not make sense fund such work by increased borrowings. As such, other items of recurrent spending – like education, social welfare or health spending – would be alternative uses of the available funds. This does not mean that public funds should not be increased, but that strong argu ments need to be made, taking account of the value for money, to back up such a choice. It also underscores the need to ensure that en hanced public funding can only be considered in the context of financial transparency and the regulation of private funding. 58. Also, the size of public funding of parliamen tary and legislature caucuses may have to be reduced if the fiscal allocation to party institu tions outside of Parliament is significantly ex panded. For instance, if policy institutes and political education activities were well-funded these would be achieved by expanding the overall budget for party funding, but also by shifting resources from the parliamentary par ty (i.e. the caucus) to the organisation outside parliament and the legislatures. THE SCOPE OF REGULATION: INTRA PARTY CAMPAIGNS AND INVESTMENTS 59. This Organisational Renewal discussion doc ument raises the issues of corruption in the contest for positions within the ANC: “Various conferences since 1994 have raised concerns about the values and organisational culture of the ANC. Over the last eighteen years, these tendencies have become embedded, especially as part of the lobbying process and have in fact worsened in their manifestation. [These include] the influence and use of money as part of lobbying for organisational positions. This includes the availability of seemingly vast resources to organise lobby group meetings, travel, communications (starter packs) to allegations of outright bribing and paying of individuals in regions and branches to forward particular factional positions and/or to disrupt meetings.”

60. This is one feature of South African democ racy that might require innovative thinking. More political energy (and significant amounts of money) is being spent in securing the elec tion of individuals to party positions. At times, the nexus between these activities and cor rupt influence is of far greater concern within political parties, including the ANC, than it is in the battle between political parties. Thus it is worth asking the question: should the laws and regulations that apply to the finance of political parties not be extended to apply to candidates in their campaigns for internal party positions? 61. The organisational renewal document propos es a number of programmes to address these tendencies. But if tendencies are as embed ded as it appears, then stronger measures, including the application of the law, might be required to dislodge them. Certainly, a public party-financing regime that ignores wide spread corruption in intra-party battles would address only part of the problem. 62. A second area to consider further is the regu lation of party-linked investment vehicles. As noted in the Polokwane resolution calls on the NEC to develop guidelines on such regulation, and the Organisational Renewal document envisages an expanded ANC in vestment portfolio through lawful and ethical participation in the economy. At the least, party-linked investment vehicles should be subject to the same transparency provisions that apply to the parties themselves. But regulation of investment policies may also be considered. 63. The most complex challenges we face con cern the role of party-owned or party-linked companies. At one extreme, such compa nies can be investment vehicles owned and controlled by the party itself. At the other ex treme, such a company might be a privately owned business, run by a dedicated ANC cadre, whose board feels an obligation to do nate a share of honestly accrued profits to the movement. A number of other relationships lie between these two extremes. 64. Is it desirable/ideal to have party owned com panies? If yes, how does one handle con flicts of interest and consequent inefficiencies in handling public resources? Let us honestly debate this issue without being expedient. We also need to factor in modern day conflict of

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