Get more Mail & Guardian
Subscribe or Login

Mashatile, Mabuza accused of pocketing ANC donations

President Cyril Ramaphosa has closed his taps to Luthuli House after it was alleged that treasurer general Paul Mashatile and Deputy President David Mabuza pocketed funds intended for the party coffers. 

Two sources with intimate knowledge of the matter told the Mail & Guardian that the two senior politicians received at least $2-million from donors but the money failed to make it into the Luthuli House bank account.  

A day after the M&G published these allegations, did the party deny the allegations. ANC national spokesperson Pule Mabe, who had been requested for comment said in a statement that the party rejects the allegations. Ramaphosa is said to have lobbied close to R30-million from donors in 2019 and 2020 to help the ANC recover from its financial woes.

“The president has rescued Luthuli House by paying staff salaries and its debts several times. In the past 18 months, the president paid for salaries when the organisation was in a crisis. He has had enough,” one senior ANC leader said. “Mashatile has done nothing to rescue the organisation from its financial crisis and the president has had enough.” 

The sources say the matter of the party’s serious financial woes was raised in a meeting of the top six in February. 

It was in that meeting that Ramaphosa questioned Mashatile and Mabuza about the missing funds. This was after Mashatile asked Ramaphosa to rescue the party because it was in hot water with the South African Revenue Service (Sars). 

The Sunday Times recently reported that Sars “is said to have garnished the ANC’s Independent Electoral Commission (IEC) allocation funds — taking away R17-million meant for the governing party — in part-payment of the party’s ballooning tax bill”. 

The party receives R120-million from the Represented Political Parties’ Fund allocated by the IEC.

This month the ANC wrote to its employees saying that salaries will again be paid late, for reasons “explained in previous communications, as well as at the general staff meetings held over the last few weeks”. 

In the letter ANC general manager Febe Potgieter-Gqubule wrote that this would continue for the next six months. 

The M&G recently reported that workers in Luthuli House headquarters were contemplating strike action after months of financial problems. The staff members previously said they were considering harsher action to get the employer’s attention.

Mashatile apologised when December 2019 salaries were not paid before Christmas and blamed the late transfer of funds from donors.

In July last year, the Daily Maverick reported that the ANC employed 387 staff nationally, had operational costs of R6-million and a salary bill of between R20-million and R21-million. 

The ANC receives most of its income through fundraising initiatives, which contributed 67% of its income this year. The party has recommended that public-party funding be increased.

Subscribe to the M&G

Thanks for enjoying the Mail & Guardian, we’re proud of our 36 year history, throughout which we have delivered to readers the most important, unbiased stories in South Africa. Good journalism costs, though, and right from our very first edition we’ve relied on reader subscriptions to protect our independence.

Digital subscribers get access to all of our award-winning journalism, including premium features, as well as exclusive events, newsletters, webinars and the cryptic crossword. Click here to find out how to join them.

Lizeka Tandwa
Lizeka Tandwa
Lizeka Tandwa is a political journalist with a keen interest in local government.

Related stories

Advertising

Subscribers only

Roshan Morar’s fingers in every pie, including KZN education and...

The controversial auditor’s firm seconded staff to run the education department’s finance offices for more than 15 years. What’s more, former KZN education director general Cassius Lubisi is the audit firm’s new chair

Revealed: R2.7bn in wasted funds is reason for protests

The auditor general paints a dire picture of Mangaung’s finances

More top stories

Facts and figures: The proportion of women legislators worldwide

Twenty-six years after the Beijing Declaration, which set the target for reaching gender balance in political decision-making, women are still underrepresented across all levels of power

Roshan Morar’s fingers in every pie, including KZN education and...

The controversial auditor’s firm seconded staff to run the education department’s finance offices for more than 15 years. What’s more, former KZN education director general Cassius Lubisi is the audit firm’s new chair

Revealed: R2.7bn in wasted funds is reason for protests

The auditor general paints a dire picture of Mangaung’s finances

South Africa’s youth are not ‘millennials’

Labelling them in the same way as youth in the US leads to false perceptions and misunderstanding
Advertising

press releases

Loading latest Press Releases…
×