Political Party Funding Act, 2018 (Act No. 6 of 2018)SchedulesSchedule 2 : Regulations on Political Party Funding, 2017 |
| 1. | Definitions |
In these regulations a word or phrase to which a meaning has been assigned in the Act has that meaning, and, unless the context otherwise indicates—
"allocated moneys" means moneys allocated from the Funds to a represented political party or independent representative during a particular financial year;
[Schedule 2(1) definition substituted by section 29(a) of the Electoral Matters Amendment Act, 2024, Notice No. 4790, GG50624, dated 7 May 2024 - Commencement 8 May 2024 by Proclamation 165, GG50628, dated 8 May 2024]
"disclosure threshold" means the threshold referred to in section 9(1)(a) of the Act;
"equitable allocation" means the allocation referred to in regulation 2(2)(b); and
"proportional allocation" means the allocation referred to in regulation 2(2)(a).
| 2. | Allocation of funding |
| (1) | The total amount of funding available for allocations from each of the Funds during a particular financial year must be announced by the Commission by notice in the Gazette within two weeks of the beginning of that financial year. |
| (2) | The allocations from the Funds to be made and paid to each of the represented political parties and independent representatives concerned are calculated by— |
| (a) | allocating 90 per cent of the total amount of funding determined in terms of subregulation (1) in respect of each of the Funds proportionally in accordance with regulation 3; and |
| (b) | allocating 10 per cent of the total amount of funding determined in terms of subregulation (1) in respect of each of the Funds equitably in accordance with regulation 4. |
[Schedule 2(2) substituted by section 29(b) of the Electoral Matters Amendment Act, 2024, Notice No. 4790, GG50624, dated 7 May 2024 - Commencement 8 May 2024 by Proclamation 165, GG50628, dated 8 May 2024]
| 3. | Proportional allocation |
The proportional allocation is determined by dividing each of the amounts contemplated in regulation 2(2)(a) proportionally among the represented political parties and independent representatives in accordance with the number of seats awarded to each party and independent representative in the National Assembly and the provincial legislatures jointly.
[Schedule 2(3) substituted by section 29(c) of the Electoral Matters Amendment Act, 2024, Notice No. 4790, GG50624, dated 7 May 2024 - Commencement 8 May 2024 by Proclamation 165, GG50628, dated 8 May 2024]
| 4. | Equitable allocation |
The equitable allocation is determined in the following manner:
| (a) | The amounts contemplated in regulation 2(2)(b) must be allocated to the national and each of the provincial legislatures in proportion to the number of members of each of those legislatures; and |
| (b) | the allocation to a particular legislature in terms of paragraph (a) must be divided equally among the represented political parties and independent representative in each of those legislatures. |
[Schedule 2(4) substituted by section 29(d) of the Electoral Matters Amendment Act, 2024, Notice No. 4790, GG50624, dated 7 May 2024 - Commencement 8 May 2024 by Proclamation 165, GG50628, dated 8 May 2024]
| 5. | Times, Intervals and instalments of payments |
| (1) | All allocations to which a represented political party or independent representative is entitled as determined in terms of regulations 3 and 4, must be paid to the represented political party or independent representative in question in four equal instalments, each within three months of the previous payment. The first instalment must be paid within four weeks of the beginning of the financial year in question. |
[Schedule 2(5)(1) substituted by section 29(e) of the Electoral Matters Amendment Act, 2024, Notice No. 4790, GG50624, dated 7 May 2024 - Commencement 8 May 2024 by Proclamation 165, GG50628, dated 8 May 2024]
| (2) | In the event of an election being called in terms of section 49(2) or 108(2) of the Constitution in respect of a particular legislature, any outstanding instalments still to be paid in terms of subregulation (1) to the represented political parties and independent representative in that legislature during the period of 21 days referred to in section 13(2)(a) of the Act, must be suspended. The instalments so suspended must be distributed within two weeks after the date of election to the political parties and independent representative that gain representation in the legislature concerned as a result of the election in accordance with the provisions of regulations 3 and 4, as the case may be. |
[Schedule 2(5)(2) substituted by section 29(e) of the Electoral Matters Amendment Act, 2024, Notice No. 4790, GG50624, dated 7 May 2024 - Commencement 8 May 2024 by Proclamation 165, GG50628, dated 8 May 2024]
| (3) | The date contemplated in section 26(2) will be the day when the money in the Multi-Party Democracy Fund reaches a total of one million rand. |
| 6. | Manner of payments |
| (1) | A represented political party must provide the Commission with particulars of the represented political party’s banking account contemplated in section 12(1)(b) of the Act, within two weeks of such a banking account being opened. |
| (2) | Any payments to be made to a represented political party in terms of these regulations must be paid into the represented political party’s banking account contemplated to in section 12(1)(b) of the Act. |
| (3) | An independent representative must provide the Commission with particulars of the independent representative’s banking account contemplated in section 12A(1)(b) of the Act, within two weeks of such a banking account being opened. |
[Schedule 2(6)(3) inserted by section 29(f) of the Electoral Matters Amendment Act, 2024, Notice No. 4790, GG50624, dated 7 May 2024 - Commencement 8 May 2024 by Proclamation 165, GG50628, dated 8 May 2024]
| (4) | Any payments to be made to an independent representative in terms of these regulations must be paid into the independent representative’s banking account contemplated in section 12A(1)(b) of the Act. |
[Schedule 2(6)(4) inserted by section 29(f) of the Electoral Matters Amendment Act, 2024, Notice No. 4790, GG50624, dated 7 May 2024 - Commencement 8 May 2024 by Proclamation 165, GG50628, dated 8 May 2024]
| 7. | Upper limit of donations |
| (1) | The President may, from time to time after a National Assembly resolution and by notice in the Gazette, determine the amount contemplated in section 8(2) of the Act. |
| (2) | In determining the amount referred to in subregulation (1), the President may consider the following: |
| (a) | The actual fiscal contribution to public funding for political purposes; |
| (b) | inflation; and |
| (c) | the actual costs of running a party and running elections, as submitted by parties. |
[Schedule 2(7) substituted by section 29(g) of the Electoral Matters Amendment Act, 2024, Notice No. 4790, GG50624, dated 7 May 2024 - Commencement 8 May 2024 by Proclamation 165, GG50628, dated 8 May 2024]
| 8. | Limit on donations from foreign entity |
The amount contemplated in section 8(5) of the Act is five million rand within a financial year.
| 9. | Disclosure limit |
The President must, from time to time after a National Assembly resolution and by notice in the Gazette, determine the threshold referred to in section 9(1)(a) of the Act.
[Schedule 2(9) substituted by section 29(h) of the Electoral Matters Amendment Act, 2024, Notice No. 4790, GG50624, dated 7 May 2024 - Commencement 8 May 2024 by Proclamation 165, GG50628, dated 8 May 2024]
| 10. | Separate books and records of account |
The separate books and records of account required by sections 12(2)(c) and 12A(1)(d) of the Act must be kept according to generally recognised accepted accounting practices, and must include the following:
[Words preceding Schedule 2(10)(a) substituted by section 29(i) of the Electoral Matters Amendment Act, 2024, Notice No. 4790, GG50624, dated 7 May 2024 - Commencement 8 May 2024 by Proclamation 165, GG50628, dated 8 May 2024]
| (a) | Records showing all transactions involving allocated moneys; |
| (b) | records showing all assets acquired with allocated moneys; |
| (c) | records showing commitments entered into in respect of allocated moneys; |
| (d) | a balance sheet; |
| (e) | an income and expenditure statement; and |
| (f) | a cash flow statement. |
| 11. | Generally descriptive categories of purposes in connection with which amounts are spent |
| (1) | Financial statements prepared in relation to the Funds must show the amounts spent during a financial year in question by each represented political party and independent representative that received allocations in accordance with these regulations in connection with purposes classifiable under the following descriptive categories: |
[Words preceding Schedule 2(11)(1)(a) substituted by section 29(j) of the Electoral Matters Amendment Act, 2024, Notice No. 4790, GG50624, dated 7 May 2024 - Commencement 8 May 2024 by Proclamation 165, GG50628, dated 8 May 2024]
| (a) | Personnel expenditure; |
| (b) | accommodation; |
| (c) | travel expenses; |
| (d) | arrangement of meetings and rallies; |
| (e) | administration; |
| (f) | promotions and publications; and |
| (g) | legal expenses incurred in the public interest. |
| (2) | The information required for the purposes of subregulation (1) must be furnished to the Commission by the accounting officer of a political party referred to in section 12(1)(c) of the Act and by an independent representative within three months after the end of the financial year in question. |
[Schedule 2(11)(2) substituted by section 29(k) of the Electoral Matters Amendment Act, 2024, Notice No. 4790, GG50624, dated 7 May 2024 - Commencement 8 May 2024 by Proclamation 165, GG50628, dated 8 May 2024]
| 12. | Short title |
These regulations are called the Regulations on Political Party Funding, 2018.