ANC treasurer-general Zweli Mkhize. Picture: TREVOR SAMSON
ANC treasurer-general Zweli Mkhize. Picture: TREVOR SAMSON

Political parties should steer away from having any direct interest in investment vehicles, ANC treasurer-general Zweli Mkhize said on Wednesday.

In his submission to Parliament’s ad hoc committee looking into the funding of political parties, Mkhize confirmed that his party had received funding from the Gupta family.

Mkhize claimed that the Guptas had also funded other parties including the DA.

Mkhize noted that new legislation such as the Financial Intelligence Centre Amendment Act (Fica) meant that political parties’ investment vehicles could be seen as “compromised” in a way.

The ANC has its own investment arm, Chancellor House, which has reportedly benefited from state contracts worth billions of rand.

“Our considered view is that we should disallow direct party political investments … the issue here is of direct party shareholding … the reason we are saying this is because there is currently a number of [laws] that will make this area a little bit more [difficult],” said Mkhize.

“There is something called politically exposed persons. Now that issue tends to affect anyone that has got any kind of a degree of association with political party leadership. It will obviously compromise anything that we try to do on the side of investments … it does not matter which party, somewhere down the line, it will become an issue.

“Fica will identify as very risky some of the investments associated with party-political prominence. They will obviously try and sequestrate such investments. It does not matter which party they would have come from, so I think we need to look at it,” said Mkhize.

Political parties needed to stay away from direct shareholding in investment vehicles, he said, and also needed to find a way to protect their savings.

phakathib@businesslive.co.za

 

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