Following the release of the Second Quarter
Disclosure Report on political party funding, the Electoral Commission notes
the general appreciation expressed at the report. This report was
published pursuant to the requirements of the Political Parties Funding Act.
The Commission again thanks the political parties that have complied with the
law.
It is apparent from the public discourse flowing
from the report that a few matters require further elucidation, which we
provide hereunder.
The Commission’s mandate and role in the disclosure
of funds donated to political parties is clearly defined in the Act. In the
initial phase of the disclosure arrangements, the role of the Commission is to
receive, record and publish declarations made on a quarterly
basis. Section 9(1) of the Political Party Funding Act, 2018, read
together with Regulation 7(1) of the Commission’s regulations, provides that
donations received by political parties must be disclosed within 30 days of the
close of the quarter.
Furthermore, the only donations prohibited by the
Act are those made by state-owned enterprises, foreign governments and their
entities, as well as other organs of
state.
The second phase of the disclosure arrangement
involves the submission by political parties of audited financial statements
after the end of the financial year. An auditor is duty bound to express an
opinion on whether the financial affairs of the party have been carried out in
line with the provisions of the Act, including whether all donations were
disclosed to the Commission.
There is therefore a two-phase compliance
arrangement pertaining to the disclosure of donations. At this stage the
Commission is not empowered to probe non-disclosure or to force political
parties to disclose. We urge South Africans to wait until the end of the
financial year for a report from the Commission which will stipulate all
disclosures made and deal with non-disclosures by political parties, noting
that the Act provides both criminal and civil sanctions which may be meted out
by courts.
In the intervening period, the onus rests on both
political parties and entities making declarable donations within the
stipulated limits per donor, to disclose such donations to the Commission on a
quarterly basis.
The Commission expresses its appreciation to the
South African public for their interest in the matter and will continue to act,
as it has and will always do, in accordance with the law.