Key Takeaways
- The African National Congress (ANC) has failed to pay salaries to its employees at Luthuli House for the third time this year.
- The party’s financial struggles have been ongoing, with previous instances of delayed payments and a court-ordered attachment of its bank accounts due to debt.
- The ANC’s treasurer-general, Gwen Ramokgopa, has been criticized for not communicating with employees about the payment delays.
- The party’s financial woes have been attributed to the new Political Party Funding Act, which requires disclosure of private donations over R200,000.
- The ANC has received significant public funding, including R1.19 billion in the 2023/24 financial year, but argues that it needs more funding to operate effectively.
Introduction to the ANC’s Financial Struggles
The African National Congress (ANC) is facing significant financial difficulties, with the party failing to pay salaries to its employees at Luthuli House for the third time this year. This comes just a week before the ANC’s national general council is set to commence, and during the term of treasurer-general Gwen Ramokgopa, a period many believed would not be marred by financial difficulty. The party’s financial struggles have been ongoing, with previous instances of delayed payments and a court-ordered attachment of its bank accounts due to debt.
The Impact of Delayed Payments on Employees
The delayed payments have had a significant impact on the employees at Luthuli House, with many struggling to make ends meet. In a letter addressed to employees dated 29 November, Luthuli House general manager Patrick Flusk warned that payments to staff for November would be delayed. The letter assured employees that the delay was not their fault and that they would receive their salary as soon as possible. However, as of the evening of 2 December, the money was still not reflecting in the employees’ accounts. This is not the first time that the ANC has failed to pay its staff on time, with previous instances of delayed payments in October and February.
The Cause of the ANC’s Financial Woes
The ANC’s financial woes have been attributed to the new Political Party Funding Act, which requires disclosure of private donations over R200,000. ANC Member of Parliament and chairperson of the Standing Committee on Finance, Joe Maswanganyi, has argued that the Act discourages donations, as donors are deterred from donating due to the requirement to disclose their names. The Act was introduced in 2021, with the aim of regulating and disclosing party finances. While the ANC receives significant public funding, including R1.19 billion in the 2023/24 financial year, the party argues that it needs more funding to operate effectively.
The Consequences of the ANC’s Financial Struggles
The consequences of the ANC’s financial struggles have been severe, with several ANC staffers losing their homes and cars due to the delayed payments. The party’s employees have also been affected, with many struggling to make ends meet. The treasurer-general, Gwen Ramokgopa, has been criticized for not communicating with employees about the payment delays, leaving them in the dark about when they can expect to receive their salaries. The ANC’s financial struggles have also raised questions about the party’s ability to govern effectively, with many wondering how the party can expect to manage the country’s finances when it cannot manage its own.
The ANC’s Funding Model
The ANC’s funding model has been criticized for being overly reliant on public funding. While the party receives significant funding from the Independent Electoral Commission, it argues that it needs more funding to operate effectively. The party’s monthly salary bill for its roughly 1,600 delegates amounts to R18 million, a significant expense that the party struggles to meet. The ANC’s funding model has been described as unsustainable, with the party relying heavily on public funding and struggling to attract private donors due to the disclosure requirements of the Political Party Funding Act.
Conclusion
In conclusion, the ANC’s financial struggles are a significant concern, with the party failing to pay salaries to its employees for the third time this year. The party’s financial woes have been attributed to the new Political Party Funding Act, which requires disclosure of private donations over R200,000. The consequences of the ANC’s financial struggles have been severe, with several ANC staffers losing their homes and cars due to the delayed payments. The party’s funding model has been criticized for being overly reliant on public funding, and the ANC argues that it needs more funding to operate effectively. As the party prepares for its national general council, it is clear that the ANC’s financial struggles will be a major topic of discussion.