Additional NPC Documents

Additional discussion documents: POLITICAL FUNDING AND ANC FINANCIAL SUSTAINABILITY

Funds should be divided between parties proportionally, largely in line with current practice. However, additional resources should be allocated to the smallest par ties in order to support political diversity and prevent the system favouring in cumbents. Consideration should also be given to means that would provide sup port for new entrants to the party system and independent candidates not affiliated to a political party. Transparency and guidelines for party linked investment vehicles: Investments from which parties derive funds or party linked vehicles that pursue such invest ments should also be regulated. At the least such regulation should include stringent transparency requirements. A code or guidelines for appropriate invest ment activities should also be consid ered. Regulation of intra-party campaign fi nancing: The regulation of party funding should also be extended in certain re spects to the financing of campaigns for positions within registered parties. Simi lar legal principles would apply. Sanc tions might include banning from holding public office. An electoral finance institution: Further consideration should be given to the in stitution that administers public funding of parties. Currently the IEC is provided funds from the Department of Justice’s budget vote, but the bulk of funds going to parties are administered through Par liament. Whether the IEC and Parliament should continue these roles, or a dedi cated institution created would require further discussion. An issue to consider is how such an institution would be pro tected from the influence of political par ties in a manner that it could conduct its oversight, monitoring and operational roles without fear or favour, ensuring im peccable application of the law.

membership subscription fee will be covering a period of two years. The constitution of the ANC to be amended accordingly 72. That the ANC must pilot a programme which seeks to provide financial assistance to be reaved comrades, through funeral policy products. The private sector service provider to be selected through a process of competi tive bidding to administer the funeral product. However, whichever service provider to be appointed, they have to provide good prod ucts acceptable to our members. 73. The contribution should be increased contri butions/levies of deployed cadres should be capped at 5% and the ANC should develop guidelines regarding fundraising in order to avoid unscrupulous people who are fundrais ing on behalf of the ANC and no money is coming to the organisation CONCLUSION 74. These issues raised in this document are complex and require further reflection. The introduction of the reforms would have far reaching consequences, and may require a transition period of two to three years during which time the increase in funding and new regulations could be phased in. 75. If our mission is to build democracy it is critical that the ANC lead in the creation of a national consensus on these issues. Before enacting legislation it might be necessary to appoint a commission with widespread public legitimacy to consider the option and make proposals on appropriate legislation. 76. We are committed to the Constitution that is our product and determined to renew the movement that is our heritage. Applying the principles of the Constitution to our own or ganisation is a good starting point for that renewal. In terms of party finances this im plies public action, ensuring that no quarter is given to those who seek to corrupt the voice of the masses and the creation of institutions that are transparent, accountable and lawful. 77. In this context, the public funding of political parties is a debate not confined to the prob lem of finance. It is a mechanism through which we can face the future with certainty and proudly declare that ANC lives, ANC leads!

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OTHER RECOMMENDATIONS 71. That the minimum membership subscription should be for a two year period to correspond with the political term of office of the BEC. This therefore would mean that the minimum

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