South Africa’s ruling party will have to make money in local elections in October as new funding disclosure rules discourage donors.
The African National Congress has made efforts to meet its payroll on time and staff were informed last month that uncertainty about when they will be paid could last for up to six months. The party, which also owes money to the South African Revenue Service, is now considering drastic staff cuts.
“We fight. We have a cash flow problem, ”said Jessie Duarte, deputy general secretary of the ANC, at a press conference in Johannesburg on Tuesday. “The donors we have traditionally relied on have resigned.”
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The financial bottleneck could undermine the ANC’s efforts to regain control of several key cities that it lost to opposition coalitions five years ago. While the party supported a newly passed law requiring all donations to political parties over 100,000 rand ($ 7,000) to be publicly disclosed, it was now working to its detriment, according to Duarte.
“Many of the people who funded the ANC may have funded other political parties,” she said. “So they don’t want it to be known that they funded the ANC, or they fund the ANC believing that it could be bad for business, or, to put it bluntly, that at some point it could be good for them Business was and is no more. “
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