Remodel ANC cost structure to eliminate excess

ANC TODAY sat with the ANC Treasurer General (TG), Dr Zweli Mkhize, after his presentation of the organisations audited financial statements at the 54th National Conference for the years ending March 2013, March 2014, March 2015, March 2016 and March 2017.

ANC TODAY: How has the economic environment affected ANC fundraising over the last five years?

TG: The economic environment under which the ANC has operated over the last 5 years highlight to the members that the success of fundraising programmes and the flow of donations are heavily impacted upon by the economic situation. However, despite the challenging economic environment, the African National Congress has been able to raise funds which far surpasses previous records, in order to cover most of its activities, but more work still needs to be done.

ANC TODAY: Where does ANC get most of its funding?

TG: 65% of ANC Funding comes from our Fundraising programmes.

ANC TODAY: Does this not affect the organisations independence

TG: It is important for organisations to maintain independence from external donor influence. The recent examples have demonstrated that donors have a possibility of dictating terms to some parties, creating distortions to those parties in how they exercise their policy choices. This is a subversion of the will of the people. However, such subversion can never happen in the ANC.

ANC TODAY: Is the independence of political organisations the reason ANC has been championing a different model of funding in Parliament?

TG: It’s important to emphasise the need for the fiscus to be the main source of funding for political parties. That way the control of the political parties in South Africa remains securely in the hands of South African people.

ANC TODAY: How has negative perceptions about the ANC affected its fundraising ability?

TG: Fundraising for the ANC political programmes dependent on the public appeal of the “BRAND ANC”. Perceptions about the ANC as a brand over the last few years, corruption, nepotism, cronyism, unprofessionalism, have made the process of fundraising all the more difficult because these are the traits most private donor’s loath, as does the rest of society.

ANC TODAY: Does the ANC have enough income and investments?

TG: The main challenge for the ANC is to create a culture of saving and investing resources as well as to reduce the high expenditure pattern. This required the revamping of its administration and review its Human Resources Plan.

ANC TODAY: How is ANC’s spending pattern and what are its high cost drivers?

TG: The monthly operational cost of running the movement still remain stubbornly high. Remuneration costs, Travel and Accommodation costs, Communication costs, Legal Fees, Stationery and Consumables and Security costs continue to be the key cost drivers. The biggest expense of the ANC, is employee benefits which take almost a third of the budget. We must revamp the administration and review Human resource plan in order to eliminate all excesses and costs.

ANC TODAY: Would you say the organisation is financially stable?

TG: The organisation has a stable and consistent income stream, with modest increments year on year.

ANC thanks all its supporters who have ensured that we remain a financially viable entity that is able to fund all its programmes and fulfil all its responsibilities.

We remain a people centred organisation sustained only by the generosity of our members and donors.

Posted in Phambili
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