'It's costly running ANC'

NEGATIVE perceptions of the ANC in the business sector have made it difficult for the party to raise funds.

This is according to a report tabled by outgoing treasurer-general Mathews Phosa at the party's conference in Mangaung.

This comes at a time when the cost of running the party has increased to what Phosa described as "alarming and unsustainable".

The cost of running ANC programmes has increased even as fund-raising efforts boosted the party's bank accounts.

Party coffers swelled by R193-million from R147-million in 2007/2008 to R340-million in 2011/12. At the same time costs have grown by R275-million from R162-million in 2007/08 to R437-million in 2011/12.

The Independent Electoral Commission, through the represented political party fund, contributed R218-million to the ANC's coffers, based on the party's representation in parliament.

Membership fees boosted the party's bank account by only R55-million in the past five years.

"These high increases in costs are alarming and unsustainable," Phosa said.

"If our organisation continues to incur high losses due to its high operational costs and is unable to raise requisite funding, it risks being unable to continue as a going concern," he added.

Phosa suggested new ways to cut costs and raise money:

- Reduce operational costs drastically by cutting down on the number of full-time employees;

- Make maximum use of cadres deployed in government and legislature positions that allow them to contribute to various areas of organisational work;

- Pass the newly proposed Political Party Funding Bill to increase public funding of political parties;

- Increase the membership fee from the current R12;

- Review the hosting of big events in close proximity to each other as this makes fund raising difficult; and

- Review the use of big stadiums when hosting rallies because this drives costs up.