Parliament Moves to Cap Political Donations Following Court Ruling

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Acting upon a resolution of the National Assembly, the President has issued regulations that set both the maximum allowable donations and mandatory disclosure thresholds for political party funding. While PMG’s original post framed this development, the details derive from parliamentary documentation.

The context for these regulations stems from a Constitutional Court ruling and subsequent electoral reform, which prompted revisions to the Political Party Funding Act of 2018. That Act was amended to include contributions to independent candidates and representatives, alongside those made to political parties.

In the absence of clearly defined limits, the Western Cape High Court provided a temporary “read-in,” establishing an upper donation cap of R15 million per financial year and a disclosure threshold of R100 000. The Court urged Parliament to resolve the issue urgently.

To comply, the Portfolio Committee on Home Affairs, following public hearings and expert input—particularly from the Parliamentary Budget Office and Treasury—evaluated various options, taking inflation and international comparisons into account.

Ultimately, the Committee recommended that the National Assembly resolve in favor of legally enforceable limits: an upper donation cap of R30 million per year and a disclosure threshold of R200 000. The Committee formally called on the President to promulgate regulations reflecting these figures as soon as practicable.