THE Electoral Commission has announced that the Political Party Funding Act will come into operation from Thursday, April 1.
The Political Party Funding Act has been widely described by legal, constitutional and political experts as a huge boost for the consolidation of democracy in South Africa.
Early in January, President Cyril Ramaphosa signed a Proclamation on the Commencement of the Political Party Funding Act, 2018 (Act no. 6 of 2018), which is aimed at regulating public and private funding of political parties.
The commission said on Thursday that the implementation of the act will introduce a new era of transparency within South Africa’s electoral democracy, mandating all political parties to disclose donations above R100,000.
It said the Act also sets restrictions on sources of funding for political parties including outlawing donations by government departments, state-owned entities and foreign governments and agencies.
Parties may however receive funding from foreign entities for training, skills development or policy development.
No member of a political party may receive a donation other than for political party purposes.
In a statement, the Independent Electoral Commission (IEC) said all registered political parties are urged to sign-up to the Online Party Funding System (OPFS) available free on www.elections.org.za.
The system, which has been piloted by parties over the past two months, allows parties and their donors to make electronic disclosures to the Electoral Commission via the internet.
The Electoral Commission also reminded all registered political parties that their first quarterly disclosure of direct donations above R100 000 is due at the end of the first quarter.
“In terms of the Act, donations include in cash, in kind (e.g. transport, posters, vehicles etc) or both and the R100 000 threshold is cumulative (disclosure is required once smaller donations by a single donor exceed R100 000 in a financial year),” said the commission.
“Funds provided to the represented political parties by the National Assembly and provincial legislatures, respectively, in terms of sections 57(2) and 116(2)(c) of the Constitution are not required to be disclosed quarterly by the political parties. Instead, these will be disclosed by Accounting Officer of the respective legislative houses annually.”
“As part of the system of checks and balances to help ensure transparency, donors who make direct donations above R100 000 to political parties must also declare these to the Electoral Commission on the OPFS within 30 days.”
- Inside Metros