POLITICS
ANTHONY BUTLER: ANC paper on party funding has merits, but needs scrutiny
'Some ANC-governed provinces dole out R630m in funds, allegedly for party and constituency activities'
Parliament’s ad hoc committee on the funding of political parties has recently received numerous detailed submissions in support of its review of party funding.
Parties need resources to organise and educate citizens, formulate policy alternatives and campaign. But private donations create opportunities for corruption and influence buying. Donors can receive licences and concessions, selective policy advantages, or public sector contracts. Meanwhile, rich parties can dominate election campaigns.
The international trend has been towards greater or exclusive public funding of parties, transparency of donations, and heavier regulation of expenditures. After a decade of foot-dragging, the ANC has finally initiated a reform process. Its own submission last week calls for heavier regulation, donation caps, transparency and spending to promote participation and democracy. Parties that agree to regulation and disclosure will be compensated by increased public support. It will also consider bans on donations by party-or state-owned companies and multinationals.The ANC document has many merits. It recognises the advantages of greater openness and acknowledges the needs of smaller parties and new entrants. It accepts opposition parties’ fear that disclosure will drive donors away or underground. Nevertheless, opposition MPs will need to keep their wits about them if they are not to be disadvantaged by new legislation. First, international experience points to the dangers of evasion an...
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