President sets new Political Funding Act thresholds

The determinations double the disclosure limit from R100,000 to R200,000 and the maximum donation limit from R15m to R30m

President Cyril Ramaphosa has increased the annual donation threshold to political parties by an individual donor from R15m to R30m.

He has also allowed for donations to political parties below R200,000 to go undisclosed, up from R100,000.

Ramaphosa set these amounts in a government gazette dated August 6. The president said he made these determinations in terms of the Political Funding Act and was also acting on a resolution adopted by the National Assembly on May 20.

When the National Assembly voted in favour of the thresholds in May, civil society organisation My Vote Counts (MVC) said if signed into law by the president, this will mean that parties will be able to accept secret donations in higher amounts, up to R200,000 and a single donor can use their financial muscle to donate up to R30m a year to a party and may make donations within this limit to as many parties as they choose.

MVC is awaiting judgment in its matter in the Western Cape High Court that was heard in February this year, in which it challenged various aspects of the act. These included the irrationality of the two limits and the power of the president to have the final say in setting the limits.

In its application, MVC wants both "natural and juristic persons" to disclose donations they have made in excess of the annual threshold. It also wants the annual upper donation limit of R15m to be significantly lowered.

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