Companies should be involved in the funding of political parties in order to contribute toward a vibrant multiparty political system, Andre Fourie, CEO of the National Business Initiative, told the Johannesburg Press Club on Thursday.
Fourie said, however, that there should be fair disclosure of donations. He said there is a need for strict criteria — such as funding decisions being taken at a board level — and that there should be disclosure, at the very least, through annual reports or press releases.
“Clear principles should be established on how these funds should be allocated,” he said.
Last year the Institute for Democracy in South Africa (Idasa) took the country’s largest political parties to court as a way of forcing them to make their private donors known, citing the Promotion of Access to Information Act. Idasa was hoping to reduce funding scandals where companies are sometimes given first priority in tenders because of their relationships with certain political parties.
Parties represented in the National Assembly receive public money but say the money is barely enough for their survival.
While various political parties are canvassing for votes in the build-up to the national elections in April, reports say some are still struggling to put together registration funds.
Fourie said ways to fund parties fairly include funding them proportionally, splitting the amount equally between the governing party and the opposition, or splitting the amount equally between a number of stronger opposition parties.
He said he was not dictating to companies what they should do. Companies are not obliged to provide financial assistance for parties, but transparent disclosure is important when they do give donations.
“But I feel strongly that there should be disclosure, by the company or the political party,” Fourie said, adding that democracy in South Africa has been good for business.
There’s a danger in companies concentrating on supporting one party, Fourie said, because “it risks being seen to be playing a political stunt”.
This does not exclude businesses like supermarkets that may want to support parties either at local or provincial level.
“It runs the same major risk of a big company supporting one party,” he said.
Fourie said listed companies’ party contributions should be made public because they owe it to their shareholders to disclose their donations.
He said although disclosure is not the final answer, it will take the country far in building a true democracy.
What is important now is that South Africa is moving towards a disclosing phase. Getting political parties to disclose private funding is still a challenge to many countries.
“We took a huge step forward and I think we are on the right track,” he said.
There are no laws in South Africa to regulate private donations to political parties.
Special Report: Elections 2004