We're not bankrupt, funding from donors has been trickling in - Paul Mashatile reveals

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Paul Mashatile.
Paul Mashatile.
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  • The ANC has reiterated its denial that it's a cash-strapped organisation, as recent reports have claimed.
  • It says, however, that new funding legislation, which authorises the disclosure of sources, is the reason why donors are reluctant to donate money to the party.
  • Treasurer-general Paul Mashatile has also denied that he and Deputy President David Mabuza have pocketed $2 million which was meant for the party.

ANC treasurer-general Paul Mashatile has, once again, denied claims that the party is bankrupt but has admitted that the new Party Political Funding Act is making regular donors reluctant to give.

He said donors didn't want to risk having their identities revealed.

"It is true that some of those who donate to the ANC would be people who are doing work with the state or would have tenders with the government.

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"However, there's no quid pro quo. We would not say donate to the ANC because we'll give you tenders. It may well be now that the reluctance is because people think they'll be accused of getting tenders because they fund the ANC," he said.

He was speaking to 702 talk show host Clement Manyathela on Monday.

The treasurer-general said that cutting down the number of staffers was imminent and was the only way the party could survive on a sustainable budget.

It believes that it can work with half of its current complement of staff members and that those who are retrenched can be called back for "temporary" projects, such as the upcoming local government elections campaign.

According to a Sunday Times report, the ANC's payroll is being sucked dry by "ghost workers", placing a massive financial burden on the party's finances.

The party was expected to assess the implementation of an internal audit report last year, but the Covid-19 pandemic delayed their plans. 

Mashatile said:

We then took a decision to say let's wait until the situation gets better because that report basically looks to the fact that we need to cut down on staff. And we just felt it was not the right to time do that so we delayed the report and have not revived to look at it. And officials have agreed that our salary bill makes our budget ... high.

"We've agreed that the way to do it first is to look at people who are approaching pensionable age. Look at [getting] those out of the system first.

"Then you look at those who are doing core business; you want to keep those and look at changing some of the functions we do because you know during the pandemic now there are other functions in a sense that have become redundant.

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"We [are] not doing rallies at the moment, there are a lot of things we [are] not doing. So, basically, you run with temporary staff for particular activities, then you can sustain your salary bill," he said.

But, as the party's financial woes grow, some officials have been accused of using the party's funds for personal interest.

Last month, Mail & Guardian reported that Mashatile and Deputy President David Mabuza were accused of pocketing $2 million that was needed to pay the salaries of disgruntled workers. Mashatile, however, dismissed the claims as false.

"It's not true. The resources of the ANC, whenever we raise it, go straight to the ANC. And the deputy president does not get involved in controlling the resources of the ANC. So there's no $2 million that was given to me and the deputy president and we used it for our own personal benefits. It was just a big lie," he said.

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