The Political Party Funding Act: key implications and considerations

Political party funding is a set of mechanisms used by political parties to raise money for their policy and electoral campaigns, and for routine activities. Political parties are funded by contributions from multiple public and private sources. It is also about the role that money plays in the political sphere. Money is vital for inclusive democracy and effective governance, allowing candidates and parties to reach voters with their messages and to build sustainable political organisations. However, it can also lead to politicians and parties listening to their donors rather than their voters, and to government contracts being corruptly awarded to the companies or donors that provide the most resources. This study selected four countries as part of a brief international comparative review. Kenya's Constitution is modelled on South Africa's, while Germany has a distinctive political party financing regime and, although it performs well in anti-corruption / integrity indices, it has nevertheless considered it necessary to tighten its political party funding laws. The United Kingdom (UK) was included because of a recent study visit there by South Africa's Electoral Commission and because of its relatively detailed regulatory regime that encompasses both fundraising and campaign expenditure. Lastly, the United States of America (USA) was included because, by contrast, its relatively weak political finance regulatory and oversight regime has been further weakened by two landmark Supreme Court decisions even as concerns have mounted about its widening socioeconomic inequalities. Prior to the promulgation of the Political Party Funding Act 6 of 2018 (PPFA), South Africa did not regulate private or foreign political funding. Any disclosure of private donations or contributions by companies or individuals (or foreign governments) to South African political parties was entirely voluntary. The PPFA has not fully resolved some of the related concerns. While money in politics is undoubtedly necessary, it is equally necessary to recognise that increased expenditure in election campaigns does not necessarily produce better-quality 5 campaigns, result in greater respect for ethical standards, or prevent aggravation of social, economic or political divisions. Parliament's Ad Hoc Committee on Political Party Funding received seventeen submissions from civil society and political parties on regulating political party funding in South Africa. Only two political parties, the African National Congress (ANC) and the Azanian People's Organisation (AZAPO), made submissions to the Committee. Both political parties highlighted the necessity of a regulatory framework to enhance accountability and transparency in political party funding. AZAPO highlighted the need to reduce foreign influence, while the ANC emphasised the prospect of increased public trust in the party-political system, thereby enhancing the democratic process