New political donation limits raise concerns over increased private interests in the country's politics



The new limit and threshold for political donations, which means political parties can accept more money from donors, could see more influence exerted on government institutions and politicians. 

Political analysts said although money is needed in politics, the capture of government and politics could broaden and become further entrenched.

This was after President Cyril Ramaphosa signed a proclamation to double the threshold and annual donation limit in the Political Funding Act (PFA). 

The annual donation threshold to political parties by an individual donor has increased from R15 million to R30m.

He has also allowed for donations to political parties below R200,000 to remain undisclosed, up from R100,000. 

These amounts were set in a government gazette dated August 6. Ramaphosa said he made these decisions in terms of the PFA and was also acting on a resolution adopted by the National Assembly on May 20.

Political analyst Zakhele Ndlovu said although money is necessary in politics, this means more capture of policy, law, political party and politicians, as well as government institutions. 

Ndlovu said this is because there is already secrecy and influence in the country’s politics. 

“The secrecy is already there. How many people know the funders of the ANC, DA, EFF, MKP etc. Do voters even care that some of these political parties are funded by the same families and corporations? Private interests are already influencing our politics. The Guptas’ influence was too obvious but in most cases such influence is subtle,’’ he said.

Ndlovu added that it was obvious that private interests corrupted policymakers and lawmakers. 

“In short, more money in politics means more policy capture, more law capture, more capturing of individual politicians, political parties and institutions of the state. People want to know who captured and infiltrated institutions of the criminal justice system. If we stretch our imagination, it becomes clear that money has been used to capture political parties,’’ he said, adding that this is taking the country back to greater secrecy. 

“Even scarier, the accountability of elected representatives is with private interests instead of the public and national interests.” 

Governance expert and political analyst Sandile Swana supported the sentiments, saying the rich determine who takes the office and increase their wealth. 

Swana said this was demonstrated by the sealed CR17 files. 

“The president we have today was decided by the billionaires and multimillionaires of South Africa. It was decided by the big businesses and white business-class. It was not a decision of the majority because politics are decided by money, meaning that the concentration of wealth determines who will run the country and how it should be governed,’’ he said, adding that those taking the office are there to preserve and increase the wealth of the rich.

Lobby group My Vote Counts (MVC) said it is awaiting judgment in its case that was heard in the Western Cape in February this year, in which it challenged various aspects of the Act. These included the irrationality of the two limits and the power of the president to have the final say in setting the limits.

The group wants political parties and independents to disclose all private donations, regardless of the amount.  It also wants both “natural and juristic persons” to be obliged to disclose donations they have made in excess of the annual threshold, and the annual upper donation limit to be significantly lowered.

MVC said while awaiting judgment, it is considering other legal options to address Ramaphosa’s action. 

“We will also be writing to the President to request that he release the reasons and full record of factors that were considered as he applied his mind to this matter,’’ said Joel Bregman, MVC project lead on money in politics.

Bregman warned that this will deepen secrecy in political funding and make it easier for private interests to influence “our” politics and for corruption to occur.

The group said R200,000 is an enormous sum of most South Africans and donations of such amounts should be made public knowledge to facilitate scrutiny of parties’ relationships with donors and ensure that donors are not receiving anything in return.

Bregman added that the last four years of disclosure data show that a handful of wealthy individuals dominate “our’’ private political funding landscape and doubling the amount to R30m in a year will give donors an even greater ability to have outsized influence on “our” political system. 

Meanwhile, political analyst Ntsikelelo Breakfast said he believes the threshold will enhance accountability. 

“We deserve to know why political parties support certain policies and it makes sense why they are increasing it,’’ he said.

manyane.manyane@inl.co.za



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