Having no limits on party donations ‘violates constitution’

There is a growing concern about the possible violation of transparency and accountability after President Cyril Ramaphosa signed the Electoral Matters Amendment Bill into law without donation caps for political parties being determined.

Some political parties and civil society groups are up in arms, questioning the constitutional validity of the Electoral Matters Amendment Act, No 14 of 2024, which became effective from 8 May after being endorsed by the president.

The legislation was passed in parliament in March.

My Vote Counts challenged the president in court

But civil society group My Vote Counts has challenged the president in court, saying his move undermined the key issue of transparency about the political party funding.

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Political parties had to declare donations in excess of R100 000 before the law was amended.

The body said, as the legislation stood, it meant the regulation of donation disclosure was removed.

It approached the courts, seeking a temporary order for the regulation of the donation cap to be reinstated.

The matter was postponed until Friday to give the other party an opportunity to replying to the application.

No disclosure limit

My Vote Count’s senior researcher Joel Bregman said, in terms of the new law, there is no disclosure limit which means there would be no disclosure of donations.

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The amended law changed the Political Party Funding Act, removing the R100 000 disclosure threshold and R15 million annual limit.

In court papers, My Vote Counts said the Act was inconsistent with the constitution and therefore invalid.

“We are now in legal limbo.

“Where nothing is disclosed, there is no transparency and that is worrying,” Bregman said.

“There is no cap at the moment until parliament passes a resolution suggesting the appropriate limit which must still be endorsed by the president after he had applied his mind to it.”

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Disappointment at Ramaphosa’s move

Congress of the People (Cope) acting national chair Pakes Dikgetsi expressed disappointment at Ramaphosa’s move.

Cope, he said, viewed the signing of the legislation into law so close to the general election as an assault on constitutional democracy.

He said it demonstrated the general inefficiencies of Ramaphosa’s administration, which was characterised by tasks being completed either slowly or not at all.

“This is an assault on the constitutional values that have been hard won, in that the need for transparency and the need for accountability is an important cornerstone of our constitutional democracy,” Dikgetsi said.

Allowing parties not to declare and be transparent violated the country’s democratic values, which required the government should be transparent and accountable, he said.

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“Ramaphosa is creating a breeding ground for more corruption and more abuse because we know who are going to be the beneficiaries of that lack of transparency,” Dikgetsi said.

Old donation limit of R15 million

Earlier, election analyst Michael Atkins said if the old donation limit of R15 million and reporting threshold of R100 000 was removed, that would interfere with funding allocations to parties.

With no limits determined, parties like the ANC and others supported by big donors would benefit while the smallest parties would struggle.