African National Congress Deputy Secretary-General, Jessie Duarte, has confirmed that the party is facing financial problems.
Duarte says this is due to funders pulling out, as a result of the introduction of the Political Party Act by parliament. She was responding to questions by the media at the ANC headquarters at Luthuli House, in Johannesburg.
Duarte was giving feedback on what was discussed at the National Executive Committee (NEC) meeting over the weekend.
Video: Duarte briefs the media on the outcomes of the Special NEC
The party’s Treasurer-General Paul Mashatile was heard, in a leaked audio, admitting that things are not going well and that they might have to cut staff compliment by 50%.
However, Duarte says proper labour processes would have to take place if the ANC resorts to retrenchments.
“I’m not going to stand here and say we’re not having financial difficulties, it’s a well-known fact. We will find a way to survive legally, above board and we will report in the annual report when the time comes and [we are] ready to do so. It was an unfortunate sensational way that it went out to the public that we’ll reduce staff by 50%. The Labour law does not allow us to simply willy-nilly reduce staff,” says Duarte.
ANC’s internal funding guidelines not suited for time we live in: Ramaphosa
ANC President Cyril Ramaphosa says the governing party’s internal party funding guidelines are not suited for the time we live in.
In his opening statement to the State Capture Commission in April, Ramaphosa dealt with the risks of corruption attached to the lack of transparency in the donations and funding political parties receive.
He says this is why the Political Party Funding Act that came in force at the beginning of April, was necessary.
However, he says the funding of internal party campaigns needs to be looked at.
“The issue forms part of the discussion documents published in 2020, in preparation for the ANC’s upcoming National General Council (NGC) and raising this issue in the NEC meeting [on] 26 July. I said, as President, in the absence of clear appropriate and realistic guidelines, our leadership contests will continue to play themselves out in the shadows, in conditions of secrecy and mistrust encouraging patronage and factionalism.”
Ramaphosa says the issue of State Capture has been a matter of great political contestation for several years within the governing party.
Ramaphosa’s CR17 campaign drew some criticism in the party and country when a number of prominent South Africans were revealed to have donated to his campaign for the party Presidency in 2017.