Electoral Commission issues Party Funding’s Fourth Quarter Disclosure Report for the 2023-24 Financial Year
Today the Electoral Commission publishes the fourth quarter political funding disclosure report. This report covers the period of 1 January to 31 March 2024 and is released just under two weeks before the country conducts the seventh national and provincial elections on 29 May 2024. The release of this report could therefore never have been more relevant and opportune than at the current moment.
Value of Donations Declared
The declared value of donations has for the very first time since the inception of the Party Funding Act surpassed the R100 million mark in any one quarter. The cumulative declared quantum is a prodigious R172 069 959.39. This amount is both higher than all of the quarters previously reported on and the combined quarterly disclosures reported during each of the previous two (2021/22 and 2022/23) financial years.
A message from the disclosed total amount is that the rate, extent and the results of political campaign finance activities for the 2024 elections have demonstrably reached levels never seen before.
Parties That Declared Donations
A record thirteen (13) political parties have made private donation declarations during this quarter, and they are:
1. Able Leadership (AL) – R360 000,00
2. ActionSA – R10 525 000,00
3. African National Congress (ANC) – R16 782 000,00
4. African Transformation Movement (ATM) - R120 000,00
5. Change Starts Now - R35 820 000,00
6. Democratic Alliance (DA) – R65 074 359,39
7. Economic Freedom Fighters (EFF) - R2 640 000,00
8. Independent South African National Civic Organisation (ISANCO) - R1 599 000,00
9. Inkatha Freedom Party (IFP) – R20 000 000,00
10. Patriotic Alliance (PA) – R1 030 000,00
11. Rise Mzansi - R15 100 000,00
12. United Democratic Movement (UDM) - R2 250 000,00
13. Vryheidsfront Plus (VF Plus) - R769 600,00
Who Made the Donations?
Able Leadership (AL) – R360 000.00
Able Leadership (AL) is an unrepresented political party that will be contesting the 2024 elections on the national ballot and the two provinces of Limpopo and Mpumalanga. The party declared a total direct donation of R360 000 comprising three separate donations of R200 000, R100 000 and R60 000. All the donations were received from an entity referred to as Madzahisi Trading Enterprise and they were in monetary terms.
ActionSA - R10 525 000.00
ActionSA declared donations valued at just more than R10 500 000. ActionSA is a regular party on the list of parties that receive and declare direct donations on a quarterly basis. A total of R9 000 000 of the party’s declared donations was received from the party’s regular donor and supporter, Martin Moshal, who made three separate donations of R3 000 000, R2 000 000 and R4 000 000 during the months of January, February and March 2024.
The remainder of ActionSA’s declared donations was received from yet another regular donor to the party, Moss Kadey, as well as another individual known as Chris du Toit and an entity known as Style Eyes of California (Pty) Ltd. All the donations were in monetary terms.
African National Congress (ANC) – R16 782 000
African National Congress (ANC) made donations declaration valued at a combined R16 782 000. Two of the party’s highest donations, valued at R6 900 000 each, were received from companies associated with the mining magnate, Patrice Motsepe, namely; African Rainbow Minerals Limited and Harmony Gold Mining Company Limited.
The rest of the declared donations were received from three different entities in the names of Naspers Limited (R2 000 000), Elohim Erets (R472 000) and Vukuzenzele Boukontrakteurs (R510 000). These donations were all made in monetary terms.
African Transformation Movement (ATM) - R120 000,00
African Transformation Movement (ATM) made a total donation declaration of R120 000 received from an individual donor by the name of Caesar Nongqunga. The donation was in monetary terms.
Change Starts Now (CSN) - R35 820 000,00
Change Starts Now (CSN), one of the unrepresented political parties that was registered with the Electoral Commission in February 2024, declared total donations valued at R35 820 000. The donations were received from three separate donors in the names of Fynbos Ekwiteit (Pty) Ltd (R15 000 000), Main Street 1564 (R15 000 000) and Ball Family Trust (R5 820 000) and were all in monetary terms. CSN is not contesting the forthcoming elections.
Democratic Alliance (DA) – R65 074 359,39
Democratic Alliance (DA) declared the highest of all donations for the fourth quarter. A total of R65 074 359.39 was declared by the party from twenty-four different transactions.
Among others, three separate donations of R10 000 000 each were received from Main Street 1564 (Pty) Ltd, Jonathan Ernest Maximillan Oppenheimer and another individual reported to be his father, NF Oppenheimer.
Additional donations were received from Martin Moshal (R8 000 000), an entity referred to as Section 48 of Flat 405 San Michele Clifton (Pty) Ltd (R6 000 000), Gap Infrastructure Corporation (Pty) Ltd, R6 000 000 plus an additional R4 000 000 totalling R 10 000 000, two entities associated with Patrice Motsepe, namely; African Rainbow Minerals Limited (R2 520 000) and Harmony Gold
Mining Company Limited (R2 520 000), as well as Naspers Limited (R2 000 000).
Various other donations ranging from R63 000 to R1 099 000 were received from a variety of individuals and entities alike.
All the DA’s donations were in monetary terms except for two donations valued at R455 632,46 which were in-kind. These were received from the regular donor, Friedrich Naumann Foundation (FNF) (R292 664,46) and an entity by the name of Voice of South Africa Foundation NPC (R162 968,00). FNF’s donation was for the party’s Communication Training, Local Government Best Practice Training and DA Young Leaders 1st Training Retreat.
In-kind donation from the Voice of South Africa Foundation NPC was in the form of payment to service providers including Tik Tok and Meta (Facebook) to boost social media content.
Economic Freedom Fighters (EFF) - R2 640 000,00
The EFF declared two separate donations received from companies associated with Patrice Motsepe, namely; African Rainbow Minerals Limited (R1 320 000) and Harmony Gold Mining Company Limited (R1 320 000). All the donations were in monetary terms.
Independent South African National Civic Organisation (ISANCO) - R1 599 000,00
ISANCO, another one of the currently unrepresented political parties, declared two donations valued at R1 599 000. Both donations were received from an entity known as Main Street 1564 (Pty) Ltd in two separate amounts of R599 000 and R1 000 000 received in January and March 2024, respectively. The donations were both in monetary terms.
Inkatha Freedom Party (IFP) – R20 000 000,00
IFP declared R20 000 000 received in two separate donations of R10 000 000 from a duo of father and son, NF Oppenheimer and Jonathan Ernest Maximillian Oppenheimer. Both donations are in monetary form.
Patriotic Alliance (PA) – R1 030 000,00
Patriotic Alliance (PA) declared a total donation of R1 030 000 for the fourth quarter. The donation was received in two separate amounts of R800 000 and R230 000 made by the party leader, Gayton McKenzie and an entity referred to as E Botha and Y Erasmus INC. The total value of donation was in monetary terms.
Rise Mzansi - R15 100 000,00
Rise Mzansi declared a total donation of R15 100 000 received from two separate donors. The largest donation was received from a voluntary organisation named We Are the People, at R15 000 000 and the rest, valued at R100 000, was received from an individual named Peter Vundla. All of Rise Mzansi’s donations were in monetary terms.
United Democratic Movement (UDM) - R2 250 000,00
The United Democratic Movement (UDM) made a total donation declaration of R2 250 000, of which R1 500 000 was late declaration of two separate donations received during the third quarter in September and November 2023. The two donations declared after the regulated time were received from Exxaro Resources (R500 000) and an individual known as Mary Slack (R1 000 000).
The rest of the donations were received from two other separate donors, namely; We Are the People (R500 000) and the Douw Steyn Family Trust (R250 000).
All the donations were in monetary terms. For the donations declared after the regulated timeframes, the party will be issued a direction in terms of section 15 of the Party Funding Act, 2018.
Vryheidsfront Plus (VF Plus) - R769 600,00
The Vryheidsfront Plus (VF Plus) made a total donation declaration of R769 600 comprising three separate donations from the two companies linked to Patrice Motsepe, namely; African Rainbow Minerals Limited (R300 000) and Harmony Gold Mining Company Limited (R300 000), as well as an individual known as Robert Hersov (R169 600). All the donations were in monetary terms.
Foreign Donations
Two foreign donations were declared for the fourth quarter. One was an in-kind donation received by the DA from the Friedrich Naumann Foundation (FNF) valued R292 664,46 and the other was a monetary donation of R825 726,93 received by the same party from an entity referred to as Danish Liberal Democracy Programme (DLDP) towards the cost of a training programme titled “Ready to Govern Locally II”.
Therefore, the total value of foreign donations was R1 118 391,39, all of which were declared by the Democratic Alliance (DA).
All of the foreign donation complied with the legislative prescripts in that none of the donors exceeded the regulated R5 000 000 per foreign donor per party in a financial year, and the funds were utilised for purposes and functions regulated in law.
Multi-Party Democracy Fund
During the fourth quarter, the Commission received a contribution of R5 000 000 to the Multi-Party Democracy Fund (MPDF), which was distributed at the start of the first quarter of the 2024/25 financial year in line with party funding prescripts. The contribution was received from one of South Africa’s major telecoms companies, Vodacom South Africa, which is a repeat contributor to the MPDF having previously done so during the 2021/22 financial year in the run up to the 2021 Local Government Elections.
The Fund has also received a further contribution of R25 000 000 during the first quarter of the 2024/25 financial year from one of the country’s large mining companies, Exxaro Resources.
This contribution will, however, only be distributed during the second quarter of the financial year in accordance with the party funding regulations which stipulate that “the payments made must be based on the money accumulated in the Multi-Party Democracy Fund from contributions received in the preceding three months”. In simpler terms, this means that the funds will be distributed among the parties that will be represented in the national and provincial legislatures post-May 2024 elections.
The Electoral Commission commends all these entities that have heeded the call to contribute towards the strengthening of South Africa’s multi-party democracy by donating to the MPDF.
Once again, the Commission calls on other corporate entities and individual members of the society to take up the challenge and support this good course.
Electoral Court Judgement on Political Parties that failed to comply with the Party Funding Act
On 10 May 2024, the Electoral Court handed down a judgement (Electoral Commission of South Africa v African Independent Congress and Others (0011/23EC) [2024] ZAEC 11 (10 May 2024) (saflii.org.za)) on a matter involving the Electoral Commission and some 496 registered political parties that have failed to account for their income as required in terms of section 12 of the Political Party Funding Act, 2018. Six (6) of the parties involved are represented political parties, namely; the African Independent Congress (AIC), African National Congress (ANC), African Transformation Movement (ATM), Congress of the People (COPE), National Freedom Party (NFP) and Pan Africanist Congress of Azania (PAC). The rest were unrepresented political parties.
These parties have been fined amounts ranging from R10 000 to R40 000 depending on the nature of breach, evidence proffered in mitigating non-compliance and whether a party was a represented political party or not. All the represented political parties were fined the maximum amount of R40 000 per party as provided for in Schedule 1 of the Act.
While the Commission does not celebrate punishment of any political party by a court of law or by any other means, it is the Commission’s hope that this court outcome will go a long way in demonstrating that adherence to the Party Funding Act and all other electoral laws is a matter that is taken very seriously by the Commission.
With the recent completion and soon to be published Political Party Funding Annual Report for the financial 2022/23, the Commission will yet again legally pursue all the parties that have failed to comply with the necessary provisions of the Party Funding Act on the submission of audited financial statements. Should there be repeat offenders in this regard, they are likely to receive a harsher punishment in line with the provisions of the Act.
Conclusion
The Commission expresses its gratitude to the corporates, individuals and parties that disclosed donations. This is more poignant ahead of the elections as it places the voter in the know regarding those behind the financial backing campaigns that are currently underway. This transparency and openness can only serve to enrich the choices of voters as they make way to voting station on May, 29.
Ensuring free and fair elections
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Kate Bapela
Cell: 082 600 6386
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E-mail: spokesperson@elections.org.za
