Here’s a good test of President Cyril Ramaphosa’s commitment to deal with corruption: the Political Party Funding Act is on his desk. All it requires to come into effect is for the president to set the date of implementation.
When it comes to the arrest of politicians and government officials and their crony accomplices in business, Ramaphosa kept a healthy arm’s length, saying he had no influence on the workings of the National Prosecuting Authority. But when it comes to putting legislation passed by parliament into action, there is no other place for the buck to stop but with him.
The evidence of business person Edwin Sodi at the Zondo commission on state capture last week showed why regulating party funding is imperative in the fight against corruption. The link between government tenders and political party funding has been evident since the 1999 arms deal and has spread right through all levels of government.
Sodi is a property developer. His list of assets, which became part of court papers after his arrest last week for corruption linked to a Free State asbestos audit, includes a vast number of properties and vehicles. In his evidence, Sodi sketched the work he did and the quid pro quo that must naturally be paid for such incredible good fortune and success.
He paid the piper well. Sodi helped the head of Free State housing buy a house, which the man could not afford, and he paid at least three Gauteng housing officials large amounts. One of them, Bongani More, got set up with R7.5m in a joint business opportunity. Sodi was vague about exactly when the funds flowed — before or after More left government.
Sodi also gave out smallanyana favours to “friends” — deputy ministers Zizi Kodwa and Pinky Kekana got money and so did Thulas Nxesi, now labour & employment minister, who claims to have been exonerated because the money went to a third party. One very fortunate couple, Walter Mokoena and Nosizwe Zuma, got R1m. Bizarrely, Sodi said he could not remember what that payment was for.
On top of all this, Sodi paid the ANC, pretty much on demand: R3.5m here, R3m there, and a whack of money to pay for ANC election T-shirts, whatever was needed. He could do so because his margins were huge. In the asbestos audit contract, for example, the subcontractor who did the work was paid R25m. Sodi’s company got an incredible R250m.
It is for this reason that Valli Moosa, a former cabinet minister and constitutional negotiator, many years after his political involvement ended, used his influence to persuade some key ANC MPs to draw up rules on party funding. Moosa’s biggest regret, he has said, was the failure to secure this when the constitution was being drafted.
The ANC chief whip at the time, Jackson Mthembu, set up an ad hoc committee on party funding, and after much back room and technical work, and to the surprise of many, the Political Party Funding Bill was passed nine months later.
The law requires the Electoral Commission of SA (IEC) to administer two party funds: the Represented Political Party Fund, which receives money for political parties from the fiscus, and the Multiparty Democracy Fund, which receives money from private donors and distributes it to parties on a proportional basis. In addition to these sources, parties may still receive private donations to the limit of R15m a year, per donor, per party. The difference will be that anything more than R100,000 must be documented and declared.
In reply to questions this week, Ramaphosa’s office said it was waiting on the department of home affairs, which administers the IEC, to complete some regulatory and funding matters. In the scheme of getting things ready, these are minor tasks. Regulations are in place and all the legwork has been done. The IEC is ready and waiting for Ramaphosa to push the button.
Meanwhile, back at Luthuli House ANC officials have been looking for ways to delay party funding legislation. The new system will not starve the party — donations are still allowed — but it will shine a light on the protection racket that has had the ANC treasurer shaking down the tenderpreneur and business community each time the salary bill must be paid.
The ANC again ran out of money at the end of September, advising employees for the second time in recent months that salaries would be late. The shakedown is no doubt under way to find a donor.
• Paton is editor at large.
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