The Independent Electoral Commission (IEC) has issued a stark warning regarding the implications of foreign funding for South African political parties, expressing concern that such financial influences could endanger the country’s sovereignty. The warning came during a media briefing held in Centurion on Tuesday, where the commission underscored the need for corporate South Africa to boost contributions to the Multiparty Democracy Fund.
Chief Electoral Officer Sy Mamabolo articulated that the current contributions to the fund are disappointingly low. He attributed this shortfall primarily to a lack of tax incentives for potential donors. “There have not been substantial contributions into the fund, and one of the problems that potential donors are raising is that there are no tax benefits to making contributions,” Mamabolo noted. He added that any amendments to tax dispensation would rest with the Minister of Finance.
The Democratic Alliance (DA) and the Inkatha Freedom Party (IFP) have revealed their dependency on foreign funding, having declared sponsorship from organisations based in Denmark and Germany, respectively. These entities serve as vehicles for financing centre-right political initiatives globally. Mamabolo cautioned that such reliance on international funding poses a risk to South Africa’s democracy, stating, “We want to call on corporates of Africa that we have to insulate our democracy from external financial influences.”
He emphasised the importance of corporate contributions to the fund as a means to diminish reliance on foreign entities, asserting, “It’s an important overriding strategic issue to preserve the sovereignty of the country.” Despite the low donation levels, Mamabolo acknowledged the efforts of certain local businesses like Vodacom and Standard Bank, which have made contributions to the fund.
Moreover, there have been calls to reassess the fund’s criteria, suggesting that it should include political parties represented in municipal councils. At present, funding is exclusively available to those with representation in the National Assembly and provincial legislatures. Mamabolo confirmed that the IEC is open to considering these suggestions for future reforms. “The Multi-Party Democracy Fund, in law, may only distribute contributions to the fund to parties or independent candidates who hold representation in the National Assembly or provincial legislatures,” he said.