There is, no doubt, something problematic about Capitec founder Michiel le Roux’s massive financial contributions to the DA this year. But if you think that’s our biggest money problem, you haven’t been paying attention. We have far more serious issues in political party funding — and they are not about to end unless we act fast.
Last month the Electoral Commission of South Africa (IEC) announced that the DA had declared an eye-watering R104m in donations in the first quarter of this year. A whopping R55m of that came from two entities linked to Le Roux. Grumbling followed, because the annual limit for a single donor to a party is R30m. Le Roux’s two donations came from two separate entities and therefore legally fall within the rules — but really, it’s the same donor.
This is a loophole that should be closed quickly. New caps and clearer rules should be introduced fast. Le Roux and the DA should both know that just because they acted legally, it doesn’t mean that their actions are in the spirit of the Political Party Funding Act and its regulations.
But let’s be honest here. People like Le Roux who declare their donations are not our main problem. Rather, South Africa and the world have a huge amount of dark money whooshing into politics — through political parties, front companies, individuals, influencers, lobby groups and NGOs — in an attempt to manipulate electoral outcomes and gain undue access to power. You can follow Le Roux’s money and wonder why he does what he does, but at least he is acting within the law and is transparent about it.
Many others are not. That’s what we need to focus on and fight, to stop the influence of shadowy billionaires and others from buying our democracy.
With the local government election just around the corner, parties need even more money than usual. Who funds the 546 parties that will be contesting the November polls? Why do they do it? How do they do it? Who funds the social media stars who make issues trend online and so set the agenda?
We are not alone in this dilemma. The New York Times reported last week that at least $1bn from anonymous donors is flowing into the US midterm elections, set for November 3.
“Dark money is not new, but it now permeates nearly every major contest,” the newspaper said.
In the UK two senior officials from Nigel Farage’s hard-right Reform UK party stepped down last week following a hidden-camera investigation that showed them allegedly soliciting foreign funding for party-commissioned opinion polls and a potential £500,000 donation from a US donor. Such activities are banned under UK law. Farage — who is embroiled in a separate scandal after a crypto billionaire gave him a £5m “gift” — was present when the £500,000 offer was made.
Where is the dark money in our system? Senior ANC leader Nkosazana Dlamini Zuma accused ANC secretary-general Fikile Mbalula of doling out cash to buy votes at the ANC’s 2017 elective conference, where President Cyril Ramaphosa was elected as leader. Mbalula is suing her for defamation.
It is an open secret that billions of rand have been spent by ANC factions to fund the party campaigns of its leaders since the 2007 conference at which Thabo Mbeki was defeated by Jacob Zuma for the presidency. ANC leaders have bemoaned the practice. We don’t know who was backing Ramaphosa’s campaign — or Dlamini Zuma’s — financially in 2017. Foreign states? Shadowy billionaires? Hopefully the Mbalula case will crack it open.
The social media landscape is particularly problematic. Organisations such as the Digital Forensic Research Lab have exposed campaigns that use networks of “sock puppets” (fake, anonymous shadow accounts pretending to be organic users) to manipulate social media trends. Who is paying them?
Look at the March and March “movement” that continues to cause havoc across the country with its violent tactics. This is an organisation that manages a slick PR campaign and has well-funded activists who traverse the country every week. Who backs it?
How rotten are our municipal coalition arrangements? In Ekurhuleni, for example, there have been persistent rumours of the city being carved up, with certain political parties given portfolios so they can fundraise off them.
There are few visible efforts by our political parties and leaders to curb these practices. That’s to be expected — many of them are the culprits in some of these transgressions. It’s up to civil society to lead this fight for transparency.
