Image By Phetolo
ANC, AIC, ATM, COPE, NFP, and PAC Fined R40,000 Each for Financial Disclosure Breach. Image ref: (The IEC)
(The Post News) The Electoral Court in Bloemfontein has cracked down on six political parties, slapping them with fines for failing to reveal their audited financial statements, a requirement under the Political Parties Funding Act (PPFA). This ruling follows President Cyril Ramaphosa’s signing of the hotly debated Electoral Matters Amendment Bill into law, a decision that’s sparked both applause and criticism across the board.
The judgment, which was delivered on May 10th through electronic means, highlights the significance of transparency in politics, especially regarding the financing of political organisations. In effect since 2021, the Political Party Funding Act (PPFA) mandates that registered political parties keep track of their earnings, including private contributions and membership fees. Any donations exceeding R100,000 must be reported to the Electoral Commission of South Africa (IEC), and the IEC will publish these donations every quarter.
The court’s judgment has imposed administrative fines of R40,000 against each of the six parties, which include the ANC, African Transformation Movement (ATM), Congress of the People (COPE), National Freedom Party (NFP), African Independent Congress (AIC), and Pan Africanist Congress of Azania (PAC). The fines are a consequence of non-compliance with the Political Parties Funding Act (PPFA), which mandates transparency in the financial activities of political entities.
In her ruling, Judge Lebogang Modiba did not hold back, calling out the parties for their silence and lack of effort in addressing the case or providing reasons for their failure to comply. She emphasised an important part of the act: the requirement for each party to appoint an “accounting officer” who is responsible for keeping precise records and adhering to disclosure regulations.
Moreover, political parties represented in the arena are entitled to financial support from the IEC for election campaigns, the allocation determined by their presence in the National Assembly and provincial legislatures.
The timing of the court’s decision holds weight, especially in the wake of President Ramaphosa’s recent approval of the Electoral Matters Amendment Bill. This bill shakes up the PPFA, scrapping the previous cap of R15 million per year on external funding for political parties and the requirement to declare donations exceeding R100,000. Critics fear this move could cloud transparency and open doors to corruption, while proponents see it as a step toward a fairer electoral landscape.
The new legislation also allows independent candidates to receive funding from the multi-party democracy fund, which is administered by the IEC and funded by private donors. This move is seen as a step towards diversifying electoral participation and expanding the pool of leadership choices for the National Assembly and provincial legislatures.
This ruling could not have come at a more crucial time, just ahead of the upcoming May 29 general elections. By upholding the PPFA, authorities are taking a pivotal stride towards guaranteeing that these elections uphold the utmost standards of fairness and transparency. The Electoral Court’s stance sends a powerful message to all political players: in South Africa’s democracy, accountability is non-negotiable.
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