'ANC is not bankrupt': Party pins late salary payments on dwindling donor funds
Frustrated and desperate ANC employees on Friday accused the party’s leadership of being cold and uncaring as many of them drown in debt because of late salary payments.
The staffers are planning to protest this week, while others are already on a go-slow as they are yet to receive their May salaries.
The ANC has been struggling to pay salaries since 2019, with Treasurer-General Paul Mashatile now proposing that it considers laying off 50% of its staff component.
Clement Manyathela speaks to Mashatile to find out what's going on and how is the party getting its house in order.
No, we're not bankrupt. The problem is funding from donors has been trickling as opposed to previous years. We made a new law from the 1st of April that governs how political parties receive their funding. We get our funding from membership fees, levies from public reps, then from government, then we used to get money from agencies overseas and then lastly, people who are in business. Now, since the funding of the new law - the Party Funding Act- there's been great reluctance from many businesses to donate because of disclosure.Paul Mashatile, ANC Treasurer-General
Mashatile says the COVID-19 pandemic has also caused businesses to struggle financially, which therefore leads to them not contributing as much as they usually do.
He adds that a report conducted by the party also found that its salary bill is much higher than the party can afford.
The report recommends that the ANC reduces its staff complement, but the party has put a hold on that for the time being.
Our salary bill makes our budget to be too high. So, it's unsustainable, basically... We want to do it [layoffs] properly because we don't want people to feel they are being targeted unnecessarily. But it is clear that unless we reduce our expenditure on wages and salaries, that it will become difficult in the near future.Paul Mashatile, ANC Treasurer-General
Listen to the full interview below...