South Africa: Political party funding

Updated July 2006

See also FICK, G 1997 South Africa: Public Funding of Represented Political Parties Act

South Africa is among the few African countries that provide public funding for political parties and the expenditure of public funds by political parties is carefully regulated and closely monitored. By contrast, private funding of political parties is almost wholly unregulated and public disclosure of party incomes and expenditures is entirely discretionary.

Public funding

The Public Funding of Represented Political Parties Act (1997, 2(1)), as amended by the Constitutional Matters Amendment Act 2005, established the Represented Political Parties Fund to provide finance to parties represented in parliament and in the provincial legislatures.

The Represented Political Parties Fund

The administration of the Represented Political Parties Fund is placed in the hands of the chief electoral officer under the oversight of the Independent Electoral Commission (IEC; Public Funding of Represented Political Parties Act 1997, 4(1)). The IEC is expected to keep full financial records and accounts for each financial year (Public Funding of Represented Political Parties Act 1997, 4(2)). These financial accounts must be submitted to the Auditor-General for auditing and then, within 30 days of the issue of the Auditor-General's report, to Parliament (Public Funding of Represented Political Parties Act 1997, 8).

Sources of income envisaged for the Fund include parliamentary appropriations, donations, interest on bank balances held, investment income and moneys accrued from other sources (Public Funding of Represented Political Parties Act 1997, 2(2)).

The Act empowers the president, acting on recommendations from a joint committee of the houses of parliament, is empowered to make and proclaim regulations for the fleshing out of details not directly prescribed by the Act (Public Funding of Represented Political Parties Act 1997, 10).

Allocation of funds

Funds are allocated to political parties that are represented in the National Assembly, or in any of the provincial legislatures, or both, in that particular financial year (Public Funding of Represented Political Parties Act 1997, 5(1)(a)). Parties that cease to qualify for funds must repay unspent moneys to the IEC within 21 days (Public Funding of Represented Political Parties Act 1997, 5(4)). These repayment provisions do not apply if members switch parties in terms of the floor-crossing legislation (Schedule 6A of the Constitution), unless, as the result of the floor-crossing, the party ceases to qualify for funds at all (Public Funding of Represented Political Parties Act 1997, 6A).

A party may use the funds any purpose "compatible with its functioning as a political party in a modern democracy", including (Public Funding of Represented Political Parties Act 1997, 5(1)(b)):

  • the development of the political will of people;
  • bringing the political party's influence to bear on the shaping of public opinion;
  • inspiring and furthering political education;
  • promoting active participation by individual citizens in political life;
  • exercising an influence on political trends; and;
  • ensuring continuous, vital links between the people and organs of state.
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References

CONSTITUTIONAL MATTERS AMENDMENT ACT, NO 15 OF 2005, [www] http://www.info.gov.za/gazette/acts/2005/a15-05.pdf [PDF document, opens new window] (accessed 30 Oct 2007).

PUBLIC FUNDING OF REPRESENTED POLITICAL PARTIES ACT, 103 OF 1997, [www] http://www.info.gov.za/gazette/acts/1997/a103-97.pdf [PDF document, opens new window] (accessed 30 Oct 2007).