Durban: An additional R1.1 billion in funding will be made available to political parties over the Medium-Term Expenditure Framework (MTEF), as stated by Finance Minister Enoch Godongwana. The announcement was made during the Electoral Commission’s (IEC) Political Party Funding Symposium in Durban, where Godongwana emphasized the importance of the funding in light of the upcoming Local Government Elections. He suggested that even further funding might be considered.

According to South African Government News Agency, the Minister highlighted the economic challenges posed by lower revenue collection, which could impact the implementation of a common funding pool for political contestants. Since 2011/12, political parties have received R3 billion to help smaller or newer parties compete against established ones. Godongwana underscored the need for strong and independent institutions to sustain South Africa’s democracy.

The Minister addressed the historical lack of transparency in political funding, which was largely unregulated until the Political Party Funding Act (PPFA) of 2018, effective from April 1, 2021. This legislation aimed to curb corruption and undue influence but also led to a reduction in private funding for parties, posing operational challenges.

Godongwana noted that political funding legislation does not currently cover local government, highlighting a gap that needs addressing. He stressed the importance of improving transparency and oversight to prevent financial abuse by illicit networks. The Minister also mentioned progress in efforts to remove South Africa from the Financial Action Task Force (FATF) grey list, recognizing reforms in anti-money laundering and counter-terrorism financing.

The Minister reiterated the critical role of free and fair elections in democracy, noting the allocation of R885 million for the IEC and R550 million for security services to ensure public order during elections. He concluded by emphasizing the need for transparency in political funding to allow voters to make informed decisions and ensure responsible public finance management.