EFF leader Julius Malema has revealed the source of funds for the party’s somewhat expensive-looking election campaign.
According to him, the party has been operating on IEC and parliament allocations and bank loans.
The party’s biggest rally since its formation last July at the FNB Stadium, said Malema, set the party back by close to R40-million.
This while their manifesto launch this year at the Moses Mabhida Stadium, he claimed, cost the EFF approximately R20-million.
Malema revealed these titbits during an engagement with the media at a hotel in Sandton, north of Joburg.
Loan from unknown service provider
The ongoing campaign was being financed through a R60-million loan from an unnamed service provider.
“When we went to the EFF 10th anniversary, we were trying to patch here and there. The IEC gave us R37-million as our allocation, which we never looked for. …It was not part of any money expected from the IEC. That R37-million is what ran that FNB,” said Malema.
“Then we came to (Moses) Mabhida Stadium. We went to Standard Bank and asked for a loan of R100-million and we were given R60-million. R40-million of the R60-million we used it to pay our service provider, who gave us a credit in 2021. We were servicing it quarterly as we get money from the IEC and parliament.
“We were owing the service provider R40-million and we paid all of it and after we said, ‘can’t you give us a credit of R60-million’? which are these things that you see [during this ongoing election campaign]. So we must pay him and still pay the bank.”
R120m debt
As a result of its political work to woo voters, the EFF is currently in debt to the tune of R120-million.
The guarantee at the bank was the funding for political and constituency work that the party receives from the IEC and parliament.
Malema said the EFF campaign might appear super expensive but that was not the case.
Their secret weapon is a good cashflow management strategy, as opposed to its opponents.
Despite the small rallies and town hall meetings that the party was pushing ahead of the elections, there is one final massive rally. The one at Malema’s home town of Polokwane. It is billed for May 25, four days before the SA electorate cast their vote.
“The companies of South Africa, including African Rainbow Minerals of Patrice Motsepe, have been donating for multi-party purposes. So there is money from there that will be declared with the IEC. It would be premature to state the total election cost.
Funded by bank loans and the state
“Basically, what you have been seeing and what you think is a lot of funders of the EFF is actually money from the bank and from the state. It is money that has been sustaining the EFF. And because we do not steal it, that is why it can do all these things that shock people on how we do it.
“I am giving you at the high level. In December, at our National People’s Assembly, the treasurer-general will present the details,” said Malema.
