Notice is hereby given of the intention, subject to rules 234 to 237 of the National Assembly, to introduce in the National Assembly, a private member's bill whose details are set out hereunder. Although the rules do not require a draft bill to be submitted at this stage of the process, with a view towards facilitating the process, a draft is appended to this memorandum.

Particulars of the proposed legislation

The bill is intended to make legal provision for the state to contribute towards the funding of represented political parties' election expenses through the mechanism of a Represented Political Parties Election Fund; to provide for the management of such funds by the Electoral Commission and for accountability regarding the fund: to regulate the allocation of moneys from the fund and the purpose for which allocated moneys may be used by political parties; and to provide for incidental matters.

The preamble affirms the foundational constitutional principle of multi-party democracy: the centrality of elections to multi-party democracy, the injunction in section 236 of the Constitution to fund political parties: that such funding be given effect to via the establishment of a special fund: and that the moneys be utilised for the purpose of meeting expenses incurred by parties in their election campaigning.

Clause 1

This provides for definitions.

Clause 2

This provides for the establishment of the Represented Political Parties Section Fund (The Fund") and indicates its sources of funding.

Clause 3

This provides that moneys credited to the Fund must be deposited in a separate bank account in the name of the Commission and that moneys in the Fund not yet disbursed to parties may be invested with the Public Investment Commissioners.

Clause 4

This provides for the management and control of the Fund, requiring that the CEO of the Commission be 'its accounting officer and CEO and that proper records must be kept by the Commission. The financial year is specified.

Clause 5

This provides that any party registered to contest a defined election represented in any legislature in the three spheres of government is entitled to be allocated moneys from the Fund. Provision is also made to define the purposes for which the moneys may be utilized by the parties. The clause also provides that in respect of national/provincial elections, the formula contemplated m section 5 of the Public Funding of Represented Political Parties Act. no 103 of 1997 be used, while the formula in respect of municipal elections is provided in the bill. The clause also enumerates what the moneys may not be used for.

Clause 6

This provides that the political parties must account for the moneys allocated to them from the fund. Provision is made for the keeping by each party of a special bank account; for the appointment by the party of an accounting officer; for the responsibilities of the accounting officer: for the keeping of separate books and records of account; for auditing of accounts; for submission to the Commission of auditor's report and statement: and for the powers of the Auditor-General in respect of suspension of allocations to a party.

Clause 7

This provides that moneys irregularly spent by political parties must be recovered and indicates how this should be effected.

Clause 8

This provides that the Commission must furnish a report to Parliament regarding the management and administration of the fund and its financial statements', that it must submit same to the Auditor-General; and that this must likewise be submitted to Parliament.

This provides that in the event of a political party not spending the moneys allocated in the required manner, any credit balance be returned to the Commission.

This provides that the President may make regulations in respect of enumerated matters.

This provides for the short title and commencement date, as well as for the possibility of the funding taking place retrospectively.

Objects of the proposed legislation

The proposed legislation is intended to strengthen the Constitution's foundational principle of multi-party democracy by giving effect at an operational level to the requirement of regular elections in which participating parties are not rendered unable to property contest elections because of an inability to raise sufficient funds.

The proposal is not that parties' election expense are met in toto and that they cease their fund raising efforts, but that a contribution be made by the state towards parties election expenses, the deficit being funded by the parties.

The proposed legislation is also intended to remedy a perceived shortcoming in the application of section 236 of the Constitution, in terms of which Parliament in 1997 unnecessarily restricted the present funding of political parties to exclude election expenses.

It provides that the state, via the establishment of a dedicated Fund, should provide moneys which assist parties in offsetting some of the expenses associated with conducting an election campaign, to which end the purposes for which the moneys may be used are enumerated as are a range of matters incidental thereto, including accountability, reporting and auditing.

Financial implications

The proposed legislation has financial implications for the State, the magnitude of which is not determined by the bill itself, but by the appropriations process. In other words, the proposal is neutral in respect of the quantum to be appropriated.

However, 'if one were to have regard to the level of funding provided to represented political parties allocated via the Represented Political Parties' Fund, as well as to needs of political parties, it is not unreasonable to assume that the quantum could be of a significant magnitude. Be that as it may, this possibility should not of itself, comprise a determining factor in Parliament's consideration of the proposal, precisely because the determination of the quantum bears no relation to the legislative proposal itself (which is merely enabling).

Name of member. Peter Francis Smith

Date …………………………….

Signature of member