It is inappropriate for state-owned entities to donate money to political parties, Parliament heard on Tuesday. It is also inappropriate for companies that have state contracts or want to do business with the government to donate to political parties. Crispian Olver, the lead researcher at the Public Affairs Research Institute at the University of the Witwatersrand, made this submission on Tuesday to the ad hoc committee set up to look into party funding. Olver also said that introducing tax exemptions for individuals or organisations that donate to political parties will enhance transparency in terms of their funding. "We believe the principle of public funding is well established, and we need to build on the existing system and increase the quantum of funds made available through the public mechanism," he said. "This has to be complemented by market-based incentives, including tax treatment of donations … at the moment donations do not qualify for tax exemptions. Tax exemptions wi...
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