The Political Party Funding Act establishes a Multiparty Democracy Fund (MPDF) to raise and distribute donated funds from the private sector to represented political parties.
The Electoral Commission is mandated to administer the fund including to raise funds for the MPDF from corporate and private donors and to distribute these funds to parties represented in the national and provincial legislatures.
The Electoral Commission is entitled to charge the MPDF an administration fee which may not exceed 5 percent of the money credited to the fund in the previous financial year.
As is the case with the RPPF, funds from the MPDF are only available to political parties represented in the National Assembly or in any provincial legislature.
Disbursement of funds
Funds from the MPDF are distributed according to the formula:
- 1/3 equal (33.3%) representation.
- 2/3 proportional (66.6%) representation.
Prohibited donations to MPDF
The Multiparty Democracy Fund may not accept donations from:
- Any organ of state;
- Any state owned enterprise;
- Any foreign government or foreign government agency;
- Any donor to the MPDF may request to remain anonymous.
Prohibited uses of funds from the MPDF
The use of funds from the MPDF may not be used:
- To pay remuneration to any person representing the party in the national, provincial or municipal legislatures;
- To pay remuneration to any person in the service of the state and who receives remuneration for that service;
- To finance or support any cause in contravention of any code of ethics binding on members of parliament or provincial legislature;
- To establish any business or acquiring or maintaining immovable property (except where that property is to be used solely by the party for party political purposes;
- To defray legal expenses relating to internal party disputes;
- Any other purpose which may be prescribed.
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