Godongwana: SARS, IEC must not enter political terrain
Finance Minister Enoch Godongwana has warned that involving the South African Reserve Bank or the Independent Electoral Commission in political scrutiny could undermine their independence and credibility.
He made the remarks at a media briefing following the second and final day of IEC’s inaugural Symposium on Political Funding, emphasising the need for neutrality as parties navigate compliance with the Political Party Funding Act.
Godongwana highlighted a major issue: “Most political parties have failed to submit the required audited financial statements over the past three years.”
While the IEC is pursuing sanctions, the minister stated he does not support these institutions conducting investigations into party finances, cautioning that it could risk their neutrality.
“Don’t try to use these institutions to investigate political parties because if the IEC investigates an aggrieved party, they will question them and the election results – take the IEC out of it.”
He warned that audits should focus solely on ensuring transparency in public spending, not probing for wrongdoing.
“Anybody who takes public funds must be traceable, that’s a principle.”
The symposium convened a broad spectrum of stakeholders—including political parties, members of Parliament, civil society, and international bodies—to enhance transparency and accountability in political financing.
As the two-day event concluded, legal challenges were already unfolding over key aspects of the Political Party Funding Act. Civil organisations are pushing for the removal of the R100,000 disclosure threshold and a reduction in the R15 million annual donation cap.
In his keynote, Godongwana expressed his hope that these court matters will be resolved before the next local government elections in 2026:
“The president's power to change the donor threshold is being challenged. So too is the R100,000 donor disclosure limit (especially for deliberately smaller donations). There are also calls for a reduction in the R15 million donation cap. It is my hope that these matters are resolved before the local government elections.”
He also urged political parties to exemplify the fiscal discipline and openness that the legislation demands.
Godongwana noted that the National Treasury is strengthening the finance framework by tightening procurement procedures and amending key laws—such as the Public Procurement Act, Public Finance Management Act, and Municipal Finance Management Act—to close loopholes and bolster enforcement.
Electoral Commission Vice-Chairperson Janet Love weighed in, warning that politics should be driven by service and democratic values.
“Politics should not be about who is the pay master, it should be about the interests of people and democracy.”
The minister wrapped up by highlighting the importance of leadership and civic awareness:
“It is in this spirit that we can develop solutions that will ultimately nurture and sustain our young democracy and safeguard its integrity.”
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