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A recent media report and subsequent correspondence from the Democratic Alliance raise critical issues and express various concerns relating to the suspension by Parliament of funds allocated to the African National Congress.

In both the report and DA Parliamentary Chief Whip Mr Watty Watson’s letter, the figure of R9.6 million which was allegedly transferred between the constituency fund and caucus fund is a misstatement. The allegation relating to the shifting of funds from the Constituency to the Caucus account is also not recorded in the audited financial statement provided by the ANC.

Parliament is aware of an amount of R9.6 million which, three years ago, was used for a project to equip constituency offices with communication facilities. On its own accord, the party aborted the project. Parliament, at the time, withheld the party’s allocation and the reason for this was in respect of the manner that the expenditure was disclosed.

The matter was referred back to the auditors and the disclosure was corrected thereby enabling the release of the funds to the party. It is important to note that even though the matter resulted in the funds being withheld, there was nothing in terms of the expenditure itself which was inconsistent with the provision of the relevant policy.

It is the parties’ prerogative to decide on the utilisation of the funds allocated to them within the parameters of the relevant policy. The movement of funds between the different accounts, namely caucus and constituency, is not prohibited. An important accounting requirement when such transfers are affected is that they need to be reflected as ‘loans.’

This year’s financial statement reflects a loan amounting to R19.6 million from the party’s caucus allocation to its constituency account.
It is important to note the following:

There has consistently been full disclosure on the part of the ANC in respect of the transactions within and between the accounts.

The expenditure incurred was in line with the provisions in the Parliamentary policy.

Parliament, where clarity was required, implemented the policy by suspending the payment of the allocation.

Parliament has always dealt directly with the parties concerned whenever issues which impact on the management of the relevant funds arose. In all instances where funds were withheld, for all parties concerned, the explanations were obtained and funds released. Parties have also made use, whenever they deemed it necessary, of the avenue provided for appealing the decision of the Accounting Officer by referring matters to the Executive Authority.

All funding related matters have, as required by the policy and the Financial Management of Parliament Act, been handled between the Accounting Officer and the Presiding Officers.