Motsoaledi, IEC dragged court over donations to political parties

The Political Party Funding Act (PPFA) is facing a court challenge amid proposed amendments to the legislation by Home Affairs Minister Aaron Motsoaledi.

My Vote Counts has approached the Western Cape High Court, seeking an order to declare the law, which came into effect on 1 April 2021, unconstitutional and invalid.

In court papers filed on Tuesday, the organisation expressed concern that the act, in its current form, did not offer adequate transparency when political parties disclose their donations to the Independent Electoral Commission (IEC).

ALSO READ: ‘R100K five years ago not same amount today: Motsoaledi proposes changes to party funding act

“At its core, this application is concerned with strengthening democracy by giving meaningful effect to the constitutional imperatives of transparency, openness and accountability,” My Vote Counts executive director Minhaj Jeenah states in his founding affidavit.

Alongside Motsoaledi and the IEC, President Cyril Ramaphosa, Justice Minister Ronald Lamola and all parties represented in Parliament have also been cited as the respondents in the court application.

Slash donation threshold

The Political Party Funding Act requires that donations of R100,000 and upwards be disclosed by parties to the IEC.

The legislation also limits the amount a party can receive from a single donor to R15 million.

But the lobby group believes the law has gaps that should be amended to prevent and combat corruption as the money donated can be used to influence decisions within government.

READ MORE: Political party funding increase may be on the cards

“It is evident that the act fails to meet its constitutional aims and thus needs to be strengthened,” My Vote Counts said in a statement on Tuesday.

The organisation argued that it was unclear how the R100,000 threshold and the annual R15 million limit was arrived at and on what basis any limit was justified.

Instead, My Vote Counts wants the act to be amended so that it requires the disclosure of all private donations and not only those above R100 000 and for the annual limit be reduced.

Read the court application below:

Founding Affidavit PPFA Court Case 2023 by Molefe Seeletsa on Scribd

The organisation also wants the financial information related to all expenditure of private donations to be disclosed.

The lobby group further asked for the act to place a limit on donations from people or entities who are related to donors.

“My Vote Counts requests the court to order that the constitutional invalidity in respect of the R100 000 disclosure threshold operates immediately from the date of the court’s judgment, whereas relief in relation to other aspects be suspended until Parliament acts, within 12 months, to remedy those provisions of the PPFA.”

Consequential amendment

The organisation’s court action comes after Motsoaledi proposed increasing the R100,000 limit on donations.

The PPFA will require a consequential amendment to include independent candidates following the enactment of the Electoral Amendment Bill.

Motsoaledi made a presentation to the Portfolio Committee on Home Affairs last week, suggesting that the PPFA be changed to exempt donors from declaring.

RELATED: ANC could lose more donors if party funding act is amended

The African National Congress (ANC) has already publicly stated it wants the act to be amended so the current threshold can be increased to R250,000 or R500,000 per year.

The governing party has previously claimed that the Act was the cause of its financial woes in recent times.

Political parties that violate certain sections of the act could receive hefty fines, ranging from R40,000 to R1 million.

State capture report

The State Capture Commission previously expressed concern over the link between political party financing and the corrupt granting of tenders.

The commission, in the state capture report, suggested that the ANC benefitted from proceeds of corruption via donations.

“Such a link can represent an existential threat to our democracy. It is inconceivable that political parties should finance themselves from the proceeds of crime, and yet there is alarming evidence to that effect,” the report stated.

NOW READ: Political Party Funding: IEC reveals non-compliance in 2022