Get more Mail & Guardian
Subscribe or Login

ANC considers staff cuts, increasing membership fees to bolster finances

The ANC’s financial crisis has been laid bare at this weekend’s national executive committee (NEC) meeting with party treasurer general Paul Mashatile proposing a 50% staff cut. 

In a leaked recording which the Mail & Guardian has heard, Mashatile — who is responsible for the party’s finances — is heard saying that he is preparing a comprehensive report which will be tabled to the party’s officials on Monday. 

This report will detail a number of recommendations that officials must consider, including the possibilities of increasing levies and membership fees to help rescue the party from its financial crisis. 

“We are also looking at what we call resizing of the organisation.The officials have agreed that we will probably have to cut our staff by 50% but those reports will come to the NEC. A lot of work is being undertaken. Comrade Febe [Potgieter-Gqubule] is leading that process of restructuring and resizing. There is another team that is also looking at crowd funding and other aspects. We are also busy looking at fundraising for elections and these reports will go to the officials on Monday,” Mashatile said, addressing the virtual NEC.

The Mail & Guardian recently reported that workers in Luthuli House headquarters were contemplating strike action after months of liquidity issues. Staffers previously said they were considering harsher action to get the ANC’s attention.

Mashatile apologised when December 2019 salaries were not paid before Christmas, saying the blame lay with the late transfer of funds from donors.

President Cyril Ramaphosa is said to have closed the taps to Luthuli House after it was alleged that Mashatile and Deputy President David Mabuza pocketed funds intended for the party coffers.

Two sources with intimate knowledge of the matter told the M&G the pair received at least $2-million from donors but the money failed to make it into the Luthuli House bank account.  

The sources said 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 allocation funds — taking away R17-million meant for the governing party — in part-payment of the party’s ballooning tax bill”.

Reacting to the M&G’s report, national spokesperson Pule Mabe said it was “unfortunate” that the M&G had decided to “cast unfair aspersions on the integrity of our leaders” adding that the party was considering laying a complaint with the Press Ombudsman.

“While the ANC has been honest and frank about its current financial challenges, it is unfortunate that some in the media chose to seize on these difficulties that confront our movement to manufacture and peddle falsehoods and to tarnish the reputation of individual leaders. We, accordingly, reject these false and baseless allegations with the contempt they deserve,” Mabe said.

Subscribe for R500/year

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 and get a 57% discount in your first year.

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

Related stories

WELCOME TO YOUR M&G

If you’re reading this, you clearly have great taste

If you haven’t already, you can subscribe to the Mail & Guardian for less than the cost of a cup of coffee a week, and get more great reads.

Already a subscriber? Sign in here

Advertising

Subscribers only

Tourism industry hopeful of UK red list review

Meeting between scientists of both countries may pave way for removal from red list

R350 social relief grant not enough to live on

Nearly half of the population in South Africa — one of the most unequal countries in the world — is considered chronically poor.

More top stories

Tourism industry hopeful of UK red list review

Meeting between scientists of both countries may pave way for removal from red list

Q&A Sessions: Kagiso Rabada — ‘When I retire, I will...

Kagiso Rabada talks to Eyaaz Matwadia about his love for music and production, how the lockdown affected him, and how he hopes to get back to his best

State to subpoena and fact-check Agrizzi’s ‘illness’ claims

The National Prosecuting Authority will conduct its own probe into Angelo Agrizzi’s claims of ill health, after he failed to attend court again
Advertising

press releases

Loading latest Press Releases…
×