Africa-Press – South-Africa. In what seems to be an admission of non-compliance with the Political Party Funding Act by its structures, the ANC on Thursday said it was “seized” with efforts to ensure financial compliance across the organisation and is engaging its leagues to offer necessary guidance and capacity.
On Tuesday, the Electoral Commission of South Africa (IEC) revealed that the ANC had received a disclaimer on the audit opinion for the 2021/2022 financial year.
Through a media statement, ANC national spokesperson Mahlengi Bhengu-Motsiri said the ANC welcomed the outcome from its external auditors for the financial year 2021/2022.
She added that the auditors gave the ANC a clean bill of health on monies received from the IEC and its donors.
“The auditors could not express an opinion on the ANC leagues’ donations and subsequently settled on a disclaimer,” said Mahlengi Bhengu-Motsiri.
This was despite concerns expressed by the IEC that it was possible that the party may have received donations that were not declared in the financial statements submitted.
IEC chief electoral officer Sy Mamabolo said:
The governing party also failed to meet the legislative requirement to submit audited annual financial statements by 30 September.
It also failed to submit auditors’ opinions of financial statements in respect of its spending of the allocated Representative Political Party Funding and the Multiparty Democracy Fund as well as the monies it received through direct funding, namely, direct donations, membership fees, levies, and any other income.
Parties represented in various legislative bodies, namely, the National Assembly and the provincial legislatures, must submit financial statements of how they spend allocations from the IEC, Parliament, and direct donations. In contrast, unrepresented parties were required to submit only one set of financial statements in respect of direct funding, together with the auditors’ opinion.
The ANC failed to submit financial statements relating to direct funding as of 30 September 2022, but has, according to the IEC, since rectified this omission by submitting revised financial statements, albeit after the prescribed date.
Despite this, IEC chairperson Mosotho Moepya said concerning the ANC direct funding, the independent auditor’s opinion was a disclaimer.
“The auditor stated that they were unable to obtain financial information to enable them to express an opinion on donations, hence the disclaimer,” said Moepya.
Bhengu-Motsiri said the cash-strapped ANC was concluding agreements with various creditors as part of its debt management solution.
She said:
According to her, the party was anticipating an improved record of performance in the current 2022/2023 financial year, which will be consolidated during the 2023/2024 period.
“Ensuring and enforcing compliance concerning the ANC’s finances and related matters is of chief importance. It is an outcome premised on the 55th National Conference resolutions as it is a critical factor in accelerating the organisational renewal programme.
“Already, as part of this work, which earnestly took off in the first 100 days of the national executive committee elected at the 55th National Conference, the organisation’s finances are stabilising. Staff salaries are being paid on time and operations of the organisation are powering ahead smoothly,” said Bhengu-Motsiri.
She also added that the ANC was proposing amendments to the Political Parties Funding Act.
“This Act has tended to have unintended consequences for political parties, and the sense that comes from donors is that it is process-heavy with overburdening administrative requirements.”
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