[2009 January 20]
The issue of political donations to political parties is attracting attention for a variety of reasons, not least being the allegations of corruption surrounding such activities. While the private funding of parties remains an unregulated arena it is almost universally accepted that a regime of disclosure and transparency can mitigate the perception of corruption and create an
environment in which much-needed funds can be properly provided to political parties.
Sustaining a number of political parties which reflect a range of political opinions is necessary to consolidate the democratic transformation of South Africa. These parties need funds to survive and operate, and the private sector has an important role to play in providing some of these resources.
This document aims to encourage a best practice model among South African corporates with regard to political party funding and it includes a list of guidelines to help companies understand the terrain and make informed
choices.
The broad motives for regulating political finance may be summarised as follows:
• preventing corruption and unethical conduct;
• enhancing fair political competition between parties;
• empowering voters through disclosure of donations and thereby promoting greater political participation;
• strengthening parties as effective participants in the democratic arena.
Article 10 of the African Union Convention on Preventing and Combating Corruption, 2003 requires States to incorporate the principle of transparency into the funding of political parties, and points to impending legislation in South Africa. In advance of such legislation companies have a window to create a workable self-regulatory framework, based on sound governance and democratic principles.
There are, broadly, three options available to companies in respect of political funding in the absence of a statutory regulatory environment – these are:
• not to make any political donations at all;
• to continue making secret donations to parties;
• to make donations on the basis of openness and transparency by disclosing the contributions made.
Broad Guidelines
• Companies should only fund those parties duly registered by the Independent Electoral Commission (IEC) in terms of section 15 of
the Electoral Commission Act, 1996 (Act No. 51 of 1996).
• Companies may wish to further restrict potential benefi ciaries by outlining a set of principles that parties must subscribe to – these could include a commitment to non-racism, non-sexism, promoting and protecting human dignity and human rights, etc. These criteria should carry the support
of the company’s key stakeholders such as its owners and workforce.
• It would be advisable for boards of companies to consider the matter of party funding carefully, taking into account the positions of all stakeholders and then adopt a clear policy position in this regard, which is publicly communicated.
• Companies may elect to establish a financial limit for their political donations in any given period, whether annually or a multi-year budget period. This may be expressed as a percentage of the company’s spending on its corporate social responsibility programme. This would protect companies from excessive and unwelcome pressure from parties to increase their donations if the annual limit has been reached, especially in election years. Companies may also consider setting a ceiling for donations to any one party.
• Companies may choose to only make contributions for defined projects, and should avoid donating funds willy-nilly for unspecified purposes. This will ensure that political donations are used to make a meaningful contribution to the political process. Priority should be given to research, opinion-polling, training of electoral candidates, workshops and meetings of party members.
• Companies should insist on directing all donations to a designated bank account in the name of the political party – no hard cash payments should be made and the employment of intermediaries should be discouraged.
Contact Shahieda on shendricks@idasa.org.za to order this book now.
For detailed guidelines and more about this subject, download the full booklet below.
This work is licensed under a Creative Commons License
DownloadsGuide to Political Donations in SA
Guide to Political Donations.pdf
Subscribe by RSS