New donation thresholds approved by National Assembly to enhance political funding transparency

IOL News

20-05-2025

The National Assembly has adopted a report that recommended that the upper limit of donations be set at R30 million and the disclosure limit be set at R200,000 in a financial year.
Image: Armand Hough / Independent Newspapers
The National Assembly on Tuesday adopted a report proposing increased disclosure thresholds and upper limits for donations to political parties and independent candidates.
This unanimous decision, except for dissent from the MK Party, Build One South Africa, Al Jama-ah, and the ATM, is a sequel to the public hearings undertaken by the Home Affairs Portfolio Committee after Parliament was taken to court by lobby group, My Vote Counts, when it passed the Electoral Amendment Act without setting the upper limits for donation and disclosure thresholds before the 2024 elections.
Before the amendment, the disclosure threshold was R100,000 per financial year, and the upper limit for donations was R15 million per financial year to political parties.
When the newly amended law was passed, which also catered for independent candidates in line with the Political Party Funding Act, the National Assembly was required to pass a resolution to enable the president to make regulations relating to the amounts and set out factors to consider in regulating the amounts.
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However, when the amended legislation came into operation in May, there were no amounts determined for disclosure threshold or upper limits or donations received.
This prompted My Vote Counts to lodge an application in the Western Cape High Court in May seeking an order.
The Western Cape High Court ruled that a legal lacuna had been created and inserted a read-in provision, which was essentially the reinstatement of the old amounts.
In its report to the House, the portfolio committee recommended that the upper limit of donations be set at R30 million and that the disclosure limit be set at R200,000 in a financial year.
Committee chairperson Mosa Chabane said the motion took into consideration the balance of running political parties and the need for transparency.
MK Party MP Sihle Ngubane said transparency was a procedural necessity for democracy that enabled voters to know the funders of political parties to make informed decisions when they vote.
Ngubane noted that there were concerns with the Electoral Commission of South Africa (IEC) enforcing compliance, in a move that may lead to potential loopholes.
He said the IEC should be provided with resources, and enforcement should be strengthened.
Ngubane said the elephant in the room was the sealed bank statement for the funding of President Cyril Ramaphosa's election to the ANC presidency.
'Till today, we have unresolved sealed bank statements funded through trusts, no accountability, transparency, and disclosure,' he said.
Ngubane also said there should be lifestyle audits of all, including judges, who must be held to the same standards as politicians.
'Their role in politics is growing daily; they choose sides instead of being impartial,' he said, adding that the Phala Phala scandal should come back and be subjected to scrutiny.
DA MP Adrian Roos said they supported the technical amendments to the Act to set the disclosure of donations and disclosures.
'These figures remain unchanged since the Act came into effect despite the inflation and rising campaign costs. For legitimate political activity to remain viable, the regulatory framework must evolve within the economic context,' Roos said.
He called for a relook of the Political Funding Act to asses whether it pursued promotion of transparency and accountability in political finances.
'Is the Act achieving the constitutional purpose of promoting openness and fairness? Has it discouraged legitimate donations?' said Roos.
EFF MP Thapelo Mogale said there was a need to ensure that the disclosure was done in a manner that did not create an administrative burden to parties as some don't have the capacity to monitor and report every donation they received.
Mogale also called on the portfolio committee to summon the four major donors of political parties to explain their motives in funding them.
ANC MP Moleboheng Modise-Mpya said the amended legislation reaffirmed the spirit of the Constitution to enhance multi-party democracy.
'We will continue to play our oversight role to ensure there is accountability and transparency on funds allocated to political parties and independent candidates.
'Our ideal situation is to have the state provide the necessary resources for political parties from the fiscus. That will go a long way to minimise reliance of political parties on private donors,' Modise-Mpya said.
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