Why aren’t the ANC’s billionaires helping their beloved party?

Those who became millionaires through their ties to the ANC should use their riches to replenish the party’s struggling purse, since previous funders are seemingly no longer attracted to the ruling party.

This was the opinion of several analysts, after the party’s staff were informed this week that they would not receive their salaries for August, or the outstanding salaries for July. This effectively puts the party three months behind in paying staff salaries.

While ANC spokesperson Pule Mabe has dismissed suggestions that the party is broke, they certainly seem to be going through a financial drought, said political analyst Professor Lesiba Teffo. He said the fortunes of the ANC took a serious knock in the past decade.

Individuals wary of being tainted by the party’s reputation

Factors such as probes by the Special Investigating Unit, the Hawks, and state capture allegations, had made the party less appealing to investors with both good and bad intentions, said Teffo.

ALSO READ: ‘Broke’ ANC faces another multimillion-rand court claim – report

“[The ANC] is no longer an attractive option for the investors and tenderpreneurs and many others who thought their fortunes will be enhanced in the ANC. There are also others who benefited from the ANC and are faced with all legal challenges and processes because of the way they acquired their wealth, so many people are becoming wary of being associated with the ANC.”

The party has over the years made millionaires and billionaires out of “businessmen with no businesses”. These are the ones who should be saving the party, said Teffo.  

“There are many people who are millionaires and billionaires who didn’t earn that money or didn’t work for that money or didn’t have businesses. Businessmen with no businesses. This is the time that they should be digging deep in their pockets to help the ANC. It is time to pay back and help the ANC because of the billions they know they didn’t earn and didn’t deserve,” said Teffo.

ANC facing ‘financial demise’

The recent Digital Vibes scandal surrounding the health department and former health Minister Zweli Mkhize, as well as the asbestos saga in the Free State where businessman Edwin Sodi allegedly pocketed millions for doing nothing are just a couple of the most recent examples of those who benefited from the ANC’s patronage, who now can’t pay back their patrons, said political analyst Professor Barry Hanyane.

“You also had the Bosasa influence. But suddenly the river has run dry. It is not surprising that there were no salaries for the past three months,” said Hanyane.

He said the party was facing a “financial demise” due to the millions the party owes to the SA Revenue Services, assets seized by the sheriff of the courts, and other liabilities which are not known to the public.

“We can safely assume that the coffers of the party are in bad shape and there is no amount of taxpayers’ money that can rescue the party from its own financial demise. Even the Parliamentary grants which parties get on a proportional basis – I don’t think that alone can rescue the ANC’s situation.”

ALERT | An "Insurrection" brewing at Luthuli House tomorrow. All ANC offices will be closed nationwide, ANC staff will be striking over non-payment of salaries for 3 months

Since 2019 the ANC has FAILED month after month to pay its staff
Never happened under Pres Zuma ‼️ pic.twitter.com/R0U2vcgc3B

— Sphithiphithi Evaluator (@_AfricanSoil) August 25, 2021

Election registration and campaigning will be tough without funding

While the party has handed in lists with most of its councillor nominees to the IEC on the due date of Monday, they still face a huge bill should they contest each metro, local council, and district municipality.

Registration for contesting municipal elections include:

• R3 500 deposit for contesting in a metropolitan municipality. This amount covers all ward and proportional representation elections in the metro.
• R2 000 for a local council election.
• R1 000 for district council elections, which only covers the proportional representation elections.

The party’s poor finances could have also have a massive impact on their performance, since campaigning for the local government elections, said Teffo.

“They have always been dripping with money and used money to get to far-flung areas and indeed, they used money to buy votes as we were told that the conference in Nasrec was bought with billions,” he said.

Since donation taps have run dry, Hanyane says the party should stop operating as a stockvel and should take charge of all its finances, including monopolising and overseeing the sales of ANC regalia at rallies and events.

“We need to ask ourselves if the ANC has the necessary expertise to modernise the party but also to establish and put in place modern systems and processes that are creative, innovative and have a hallmark of a 21^st century management of a political party,” he said.

ALSO READ: ANC says elections must be held in October but also supports IEC bid for postponement

rorisangk@citizen.co.za