NEWS
20/12/2017 07:39 SAST | Updated 20/12/2017 07:39 SAST

ANC Is Technically Insolvent

The party's financial reports indicate that its total debt is R215-million.

Siphiwe Sibeko / Reuters
President Jacob Zuma (L) gestures as he speaks to Jessie Duarte, Zweli Mkhize and Deputy President Cyril Ramaphosa (R) during the 54th National Conference of the ruling African National Congress (ANC) at the Nasrec Expo Centre in Johannesburg, South Africa December 17, 2017.

The ANC is technically insolvent, Business Day reported on Wednesday.

This is reportedly according to the financial report by former ANC treasurer-general Zweli Mkhize, tabled at the ANC's elective conference on Sunday.

The ANC is also in the red with its debts totalling R215-million over the past year, despite a debt-management programme that saw its debts declining from R249-million since 2013.

Most of the party's financial woes appear to come from the cost of elections. The party reportedly spent R750-million on the national and municipal elections in 2016 and 2014. T-shirts and other promotional material reportedly cost R250-million.

This is despite huge fundraising efforts that saw the party raise R2.6-billion in revenue.

The Mail & Guardian reported that the party's financial problems were being undermined by its internal disputes.

"Fundraising for the ANC is a political programme dependent on the public appeal of the 'BRAND ANC'. As such, challenges of infighting, factionalism, misconduct and ill-discipline, perceptions of corruption, arrogance and various other ills have a negative effect on the support the ANC receives. We need to urgently address these challenges and remain vigilant to avoid the erosion of the support that the ANC enjoys," the report says.

The party was able to raise R521-million in the 2016/17 financial year, but its operating costs have increased by R407-million since 2008.

In 2014, the Mail & Guardian reported that the party was broke.

Sources told the paper that the ANC was unable to pay its staff, and was planning lay-offs to cut costs.

The party reportedly faced liquidation threats from suppliers who were owed millions. There appeared to be hostility coming from the private sector, which was hesitant to fund the party. But then-secretary-general Gwede Mantashe denied this, saying those who "had problems politically" were returning to the party.