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The Electoral Commission of SA (IEC) is grappling with a major setback in its effort to build a sustainable democracy fund, as contributions from businesses and individuals remain painfully low despite the fund’s critical role in protecting South Africa’s sovereignty.
During a press briefing this week, IEC chief electoral officer Sy Mamabolo indicated that contributions to the multiparty democracy fund have been poor. He said businesses found it difficult to pour money into the fund when no tax breaks were guaranteed.
The fund was established to discourage direct sponsorship of political parties, guard against regime installation, and ensure that South Africa’s sovereignty is never undermined.
In a follow-up exclusive interview with Sunday World, IEC spokesperson Kate Bapela disclosed that in five years, the fund has received only R45.7 million.
“Adequate funding of the MPDF is a democratic imperative, ensuring inclusivity, fairness, and sustainability in the political system,” Bapela said.
Records seen by Sunday World reveal that the largest single contribution came in April 2024, when Exxaro Resources donated R25-million. Vodacom has given R10-million in two instalments, Standard Bank has contributed R10-million through four payments of R2.5-million each, and Discovery Central Services has added R750 000.
Former South African Revenue Service deputy commissioner Ivan Pillay has made
personal donations of R10 000.
“The absence of any tax benefits or other financial incentives further reduces the fund’s appeal, especially when compared to corporate social investment initiatives,” Bapela told Sunday World. She explained that the fund is meant to ensure a level playing field for parties.
Bapela stressed that foreign interference was another danger the fund was designed to prevent. “The act prohibits contributions from foreign governments and agencies, safeguarding South Africa’s sovereignty and preventing external interference,” she said.
Looking ahead, she confirmed that while the issue of tax incentives lies with the finance minister, engagements are underway.
The R45.7-million collected so far is paltry when set against the amounts raised by political campaigns themselves.
The most glaring comparison is the controversial CR17 campaign, which bankrolled Cyril Ramaphosa’s rise to the ANC presidency and ultimately the Union Buildings. Ramaphosa told the Zondo commission the campaign raised about R300-million, while former public protector Busisiwe Mkhwebane claimed it raised over R1-billion. Either way, the figures dwarf the multiparty democracy fund, highlighting the gulf between opaque internal campaign financing and transparent public mechanisms.
South Africa’s political funding regime has undergone steady evolution. Parties once relied almost entirely on direct donations, often undisclosed and difficult to trace.
The Represented Political Parties Fund, administered by the IEC, was later introduced to distribute Treasury allocations according to proportional representation.
The Multiparty Democracy Fund (MPDF), created under the Political Party Funding Act of 2018, was meant to complement this by drawing transparent private contributions into the democratic system.
Into this debate steps Business Unity South Africa (Busa), the apex representative body for South African business.
Busa chief executive officer Khulekani Mathe told Sunday World that while the federation had not yet discussed the issue. “Although we don’t have a formal position as Busa, I believe it’s a valid view,” Mathe said.
He explained that Busa’s member associations represent about 90% of corporate South Africa, which means their eventual stance could prove decisive.
“The other way that this would come onto the Busa agenda is if the government were to put out a call to the public to say, ‘We intend to introduce this, please give us your comment. We would obviously rally our troops and say, ‘As business, let’s do this,’” Mathe added.
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