Go ahead for Ramaphosa to set regulations for political party donations

Go ahead for Ramaphosa to set regulations for political party donations

Parliament gave President Cyril Ramaphosa the go-ahead to formulate regulations that will set out the upper limits of donations political parties can receive and disclose to the electoral body.

This was after the National Assembly on Thursday adopted a motion that required that Ramaphosa, acting on a resolution of the National Assembly, may by proclamation make regulations contemplated in the Political Party Funding Act.

The motion, which was initially to be considered early Thursday morning, was deferred to allow parties to consult, after opposition parties complained that they had seen the motion at a short notice, contrary to motions being usually published in the order paper.

IFP chief whip Narend Singh said he got sight of the draft resolution 30 minutes before the plenary session.

“On reading the resolution I am confused about what is required from us in the House. I feel that we must have a discussion among the whippery,” he said.

His sentiments were echoed by the DA and ACDP.

DA chief whip Siviwe Gwarube said: “I support honourable Singh’s proposal to have a quick discussion during the course of the sitting.”

She said they needed to understand the contents of the resolution they had not seen before.

ANC chief whip Pemmy Majodina agreed to the request for further consultation.

“We commit that it will come back and this is our last sitting and we have to deal with this matter once and for all,” Majodina said.

When the draft resolution was ultimately submitted, it was agreed to.

However, the DA, Freedom Front Plus, IFP, ACDP and PAC registered their objections.

Singh’s request to make a declaration on the resolution was shot down by Majodina.

“I am a little bit surprised. We met at the chief whips forum, nobody talked about declarations.

“We cannot open a declaration now just because someone is opposing the motion and now wants to make the declaration. We should have agreed on that process and therefore we don’t support this declaration,” Majodina said.

According to the resolution, when making the regulations, Ramaphosa must take into account several factors.

These included the amount of money previously appropriated by Acts of Parliament for the Political Representatives Fund within the previous five financial years, the constraints on the fiscus in funding political parties, independent representatives or independent candidates as well as the effects of inflation on the value of money over time, and the actual fiscal contribution to public funding for political purposes.

“The President (must) make regulations regarding the amounts contemplated in section 8(2) and 9(1)(a) on an urgent basis as set

out in regulations 7 and 9 of Schedule 2 of the Act; and the President must within six months from the date of this resolution, table comprehensive draft regulations for consideration by the National Assembly, and for a resolution to be made in terms of section 24(1)(a) of the Act,“ read the resolution.

The regulations are a sequel to the Electoral Amendment Act that was passed last year to provide for independent candidates to stand for election in Parliament and provincial legislatures.

It provides for the regulation of the private and public funding of independent candidates and independent representatives, among other things.

In terms of its proposed funding formula, the allocation of party funding has been changed from two-thirds proportional, and one-third equitable to 90% proportional and 10% equitable.

The new legislation removes the R15 million a year limit on funding political parties may receive as donation, and the R100 000 threshold to declare the donations.

It now empowers the President to make regulations on the upper limits of donation and disclosure limits for donations once the National Assembly passes a resolution.

The signing into law of the bill went ahead despite concerns raised by opposition parties and civil society groups to the changes made to political party funding.

Ramaphosa had been urged not to assent to the bill on the grounds that it was allegedly unconstitutional and was hastily rushed through Parliament.

Parties and other interest groups have threatened to mount a legal challenge to the bill, which they believe would give the ANC a bigger slice of the pie.