A law to control donations to political parties has hit the ANC hard — it is in the red and often struggles to pay salaries.
An internal financial report shows the party raised more than R2.1bn in the five years since 2018 but was left with a “shortfall” of R245m.
The legislation became effective in 2021 after it was actively driven through parliament by the ANC and its 57% majority.
President Cyril Ramaphosa, who signed the draft legislation into law, hailed it as a “historic development for transparency and accountability”.
The Political Party Funding Act prohibits donations to parties by foreign governments or agencies, foreign persons or entities, organs of state or state-owned enterprises. Parties may, however, receive funding from foreign entities for training, skills development or policy development.
The act also requires parties and donors to disclose to the Electoral Commission all donations above R100,000.
“Whoever wants to donate substantial amounts of money is putting themselves under the microscope,” said political analyst Matlala Setlhalogile.
“There are quite a few businesses and personalities in the past that got negative attention in connection with funding the party or doing — or suspicion of doing — business with the government. So nobody wants that kind of attention nowadays.”
The ANC says difficulty raising funds “has resulted in the inability to pay costs, salaries and service” debt. “These matters concern our bankers, creditors and auditors regarding the financial status of the ANC.”
The party has blamed 'restrictive sections' of the party funding act which require regular publication of the names of donors.
The report was prepared for the ANC elective conference in December and formed part of the handover by then treasurer-general Paul Mashatile to his successor Gwen Ramokgopa.
The report shows that 58% of the party's funds came from donors, while 24% came from Independent Electoral Commission disbursements. Membership fees and levies contributed about 6% each.
The party spent R429m on the 2019 general election and R205m on the 2021 local elections. Staff salaries accounted for R928m, while travel and accommodation cost R91m.
The ANC's 300-strong staff has at times had to wait months for their salaries. The party even withheld statutory obligations such as retirement savings deductions. Salary costs decreased by R13.9m as staff numbers dropped by 54. Salaries were responsible for 60% of operational spending.
The party has blamed “restrictive sections” of the party funding act which require regular publication of the names of donors.
That “emasculated the ability of the movement to raise funds” as donors who did not want to be named stopped funding the party.
“Our ability to raise funds is not only restricted but severely impeded, which has resulted in us not being able to sustain the organisation financially.”
The Zondo commission also affected its finances as “the ANC and some of its senior members were cited in the state capture report”.
Among options considered to swell the party's coffers is a 3% levy on the salaries of “deployees” — those who get jobs through the party.
The party has also been toying with the idea of selling its properties, including its 28 Penton Street building in London and another in Dar es Salaam.
The report reveals that the party has concluded the sale of its former head office, Shell House.
An ANC source said some in the party wanted the funding legislation removed but were mindful that there would be a backlash.
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