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The ANC, which has been struggling to make ends meet, wants to increase funding for political parties with taxpayer money.
This is according to the Sunday Times, which said ANC General Treasurer Paul Mashatile wants to increase state funding for political parties from R164 million to more than R500 million a year.
The report said that strict new funding rules and high-profile funding scandals have caused private donors to “turn off the taps.”
The Daily Maverick reported that “the recent series of arrests of ANC donors accused of corruption in government circles is likely to create further problems for the ruling party.”
These arrests highlighted the problem of political financing and represent a great challenge for the ruling party.
If political donors can no longer secretly give money to the ANC, will the party be able to finance its operations?
In January Mashatile acknowledged that the ANC has financial challenges that they were trying to address through a Presidential Golf Challenge and a gala dinner.
While these events helped, the party’s financial problems resurfaced a few months later with the ANC unable to pay wages in June and August.
So it’s no wonder Mashatile is looking to taxpayer money to fund the party, but it will be easier said than done.
The South African economy has contracted significantly due to the COVID-19 pandemic and the shutdown, which has caused tax revenues to plummet.
Lower tax collection, combined with a growing budget deficit and additional public spending, has put tremendous pressure on the Treasury.
If Mashatile wants to get more taxpayer money for the ANC, he will have to convince Finance Minister Tito Mboweni that it is the best way to spend tax revenue.
While Mboweni told the Sunday Times that he was willing to discuss grant increases with political parties, getting more money out of the minister will not be easy.
Other priorities, such as saving state-owned companies and paying social subsidies, may take a higher priority than giving more money to political parties.
Now read: Eskom funded the ANC with taxpayer money
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