Potential ANC funders are more interested in funding factions than party programmes.
The startling revelation was made by former Gauteng provincial treasurer Parks Tau in his financial report tabled at the 14th Gauteng provincial conference, which sat over the weekend in Benoni, on the East Rand.
“What has been disconcerting is the experience where potential funders express a willingness to fund intra-organisational campaigns and programmes, and not necessarily the activities and programme of the organisation.
“That on its own, coupled with other new trends and practices in the organisation, present an existential question to the movement,” Tau wrote.
Over the last decade, ANC politics have been marred by factional battles, which have spilled on to public spaces and social media. The most visible battle has been that of the RET forces versus CR17.
In all the provincial conferences that have been held since December, every organisational report has touched on how factions are hampering the party.
Tau said successive ANC administrations deserved commendations for facilitating the emergence of a black “bourgeoisie” and black middle class.
He said these groups required “explicit” state support since “this social group has sizeable economic muscle to support, as donors and patrons, the ANC policies”.
That in itself could be a problematic statement as the country has seen thevemergence of black elite who abuse state resources and loot public funds thanks to their proximity to politicians.
The report paints a glowing picture, showing that the party is in good standing.
Auditing firms SizweNtsalubaGobodo Grant Thornton (SNG Grant Thornton) and RSNT Accounting gave the party glowing commendations on its financials.
According to the two firms, the ANC in Gauteng provided solid financials during their last term, which saw Panyaza Lesufi elected provincial chairperson. The audited statements are for between 2019 and 2022.
SNG Grant Thornton wrote: “The financial statements present fairly in all material respects, the financial position of the ANC.”
The firms said the ANC had met the international financial reporting standards for small to medium entities.
RSNT said they were able to successfully trace all financial records and supporting vouchers.
“All payments selected for testing and supporting vouches were properly authorised and correctly classified.”
According to Tau’s report, a major financial challenge for the party has been the introduction of the Political Party Funding Act.
The act requires parties to disclose all donations above R100,000 and not to accept funding of more than R15m from one donor per annum.
“Traditionally, political parties relied on public [and] private funds to survive. This survival is intricately linked to the performance of the economy and the ability to private donors to contribute.
“This has been further exacerbated by the introduction of measures and legislation to increase transparency and accountability within the political system,” he wrote.
Aside from the new act, the ANC is also saddled with a bloated wage bill as more than 50% of its income goes towards paying salaries.
There was no indication as to how many people are employed by the party.
“Given the constrained funding environment, the province has had to find ways to manage attrition in the organisation. This included the redeployment of skills in the political offices of the deployees.”
Parks tabled the report at the 14th ANC provincial conference at the weekend.
While the conference ran until the early hours on Monday, it had not concluded its business and will reconvene over the weekend during a provincial general council.
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