Moscow – South Africa’s ruling party since the end of the Apartheid, the African National Congress, is reported to be in financial turmoil, driving its leaders to pledge to legislatively boost the financing of political parties’ financing and raising allegations that the ANC may soon cut personnel.
South Africa’s oldest egalitarian left-wing political entity is more than R20 mln ($1.84 mln) under and has not been paying salaries to some of its workers due to lack of funding after the 2014 general election, as reported by the Mail & Guardian. The shortfalls were caused by the tight competition with the nation’s main opposition force, the Democratic Alliance, in the most recent elections.
According to some reports, some ANC employees have not been paid for more than two months, with others receiving salaries delayed by weeks. Sources within the ANC have also said the party is planning to downsize its staff by half in an attempt to reduce its spending.ANC Secretary General Gwede Mantashe said to the media that the party’s financing was cut after it had lost 16 seats in parliament in the general elections this May. The ANC also lost 16 seats in the regional parliaments, despite it gaining 3 seats in three provinces. The party’s personnel is already aware of the management’s plan to cut expenses and some employees have expressed their dissatisfaction with the situation, as unemployment in the nation is rife, reported at 25.4% in this year’s third quarter, according to the Trading Economics data.
“We said to them: ‘Comrades, please bear with us … the ship is tight’,” Mantashe said as quoted by the Mail & Guardian. “When things turn around we will look at what option we have.” He, however, denied the allegations the party is intending to cut staff, insisting that employees will only be forgoing bonuses this year. “We have not let go of a single staff member,” he said, adding, “Staff want an 18% increase … Increases are a function of affordability.”
The financial difficulties the ANC is facing have in part been caused by the growing reluctance of private-sector donors to fund the ANC over the past few years. ANC members say the party has been unable to pay bonuses for some time prior to the current internal crisis. The ANC is also heavily indebted millions of rands to providers of certain goods and outsourced services and are now facing lawsuits because of it…
(By Ria Novosti)
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