Broke ANC resorts to crowdfunding to raise cash
The financially-depressed African National Congress (ANC) has turned to crowdfunding in a bid to meet its financial obligations, including paying salaries for thousands of its employees.
The governing party has in recent months been facing pressing financial challenges that impacted some of its operations as donations dried up.
The situation has become so dire that SA’s oldest political party has failed to pay salaries on time on multiple occasions, but says it remains committed to resolving the issues.
The ANC still owes its employees their salaries for July and last week announced payments for August will also be delayed.
Yesterday, the ANC announced it has put in place a number of initiatives, including online crowdfunding, increasing membership fees and levies.
In a statement on Sunday, the ANC said it launched its crowdfunding campaign to raise funds in a way that is responsive to Political Party Funding Act requirements.
“The crowdfunding is aimed at mobilising ANC members and supporters to participate in funding ANC programmes and activities.
“The ANC crowdfunding came into effect on 12 August 2021, to encourage ANC members and supporters to make a contribution into a centralised and single account. We are hopeful that the plan will generate active interest in the sustenance of the organisation.”
The party says it has so far been encouraged by the initial response to crowdfunding efforts and hopes to grow participation in the campaign.
The ANC says it will abide by the Political Party Fund Act, which requires declaration of all donations of R100 000 and above.
SA’s Political Party Funding Act came into effect in April and, among other things, requires that donations be disclosed by parties and donors to the Independent Electoral Commission.
The law prohibits donations to parties by foreign governments or agencies, foreign persons or entities, organs of state or state-owned enterprises.
President Cyril Ramaphosa, who is also ANC president, signed the Act into law in January and at the time said: “The implementation of the Political Party Funding Act will have far-reaching consequences for good governance and ethical political activity. It will strengthen the confidence of citizens in the democratic political process and enable them to assert their right to information.”