This document discusses political party financing and its implications in Malawi. It notes that political parties rely on various sources of funding, including government funding allocated based on election results, membership contributions, donations from anonymous individuals and organizations, and payments from businesses. However, it expresses concerns that without proper regulation, this funding can be abused and lead to corruption. The document calls for reforms such as enacting legislation to regulate political party financing and establishing independent oversight of the process.

1. Gerard Chigona (PhD)
Centre for Multiparty Democracy
www.cmd.mw

2.  Role of Political Parties in the May, 2014
elections.
 Political party financing & its implications
 Forward looking

3.  Mobilisation for voter registration
 Mobilisation for voters’ roll verification
 Deployment of candidates
 Campaigns
 Participation in debates
 Monitoring of the polls
 CMD-MEC periodic interface meetings
 Voter education, of course with a bias
 Contributions during NECOF meetings
 Signing of agreements, commitments, with
different stakeholders
 Party tallying centres

4.  Government funding: “the State shall provide
funds so as to ensure that, during the life of
any Parliament, any party which has secured
more than one-tenth of the national vote in
elections to that Parliament has sufficient
funds to continue to represent its
constituency”(Section 40 {2})
 Membership contributions

5.  Public Account # 1 & Benefits of incumbency:
(use of the public media, state security,
politicisation of development programmes
and projects, cash and material handouts, etc
Illustrative expressions:
Woyenga mafuta satuwa!
The tree that grows on the edges of the river
never wither !!!!

6.  Donations from anonymous “well-wishers,”
e.g. individuals and organisations.
 Political payments & business companies: In
this regard, companies and business
enterprises are forced to finance political
parties. These are forms of political
investments usually without written contracts,
hence not easily enforceable by the courts.

7.  In Malawi, the PPRRA has no specific
provisions regarding political party financing
and regulation.
 However, currently there is a draft Bill being
championed by the Centre for Multiparty
Democracy. The bill has provisions in relation
to political party financing and regulation.

8.  Abuses of the public funds by incumbent parties. In
the absence of proper legislation, incumbent parties
are a threat to the safety of the public purse.
Solution???? One presidential candidate had this:
Abolish Account # 1 and Decentralise!!!!!!!!
 Once upon a time, Hon. Mark Katsonga Phiri, the PPM
President said, “ there are no big or small political
parties in Malawi. Political parties grow when they
are in government” (Interview on 09/04/2014,
Blantyre).
 These abuses easily lead to a bizarre situation where
there is a rich party running a poor government.

9. “ Such a regime does not go very far.
It cannot halt the process of its own
contradictions. Since the bourgeoisie, i.e. the
elite , has not the economic means to ensure
domination and throw a few crumbs to the
rest of the country; and since moreover, it is
pre-occupied with filling its pockets as rapidly
as possible, the country sinks all the more deeply
into stagnation”. (Frantz Fanon, 1961)

10.  Donations from anonymous individuals,
organisations, companies to political parties
mainly during elections are a common
source of revenue. But this too has its own
risks particularly where there are weak or no
legal and institutional regulatory
mechanisms.

11. The Trojan Horse
“ Timeo Danaos et dona
ferentes,” I fear the Greeks
even when they bring gifts.

12.  Tax reduction
 Tax exemptions
 Access to lucrative government contracts,
e.g. construction, supplies, mineral
exploration rights, etc
 Public utility franchises
 Protection against import competition, and
any other favours a friendly government
can confer.

13.  Donations to political parties when not
regulated pose a risk to national economy as
well as security.
 In terms of security, State becomes
vulnerable to a takeover by undesirable local
or foreign interests because political parties
easily become their proxies.

14.  Public inquiry/investigation: party financing is
just one of the many aspects of the just
ended elections. It could be desirable to
consider a public inquiry into the whole
management of the process including
financing of political parties. Results of such
an endeavour could help in institutional and
legal reforms including the law on party
financing.

15.  Institutionalisation of party monitors: Political
parties might have to consider establishing
the positions of party monitors in their
organisational structures to ensure more
commitment and professionalism. The ad hoc
manner in which they are often picked does
not bring adequate returns to the party and
the nation at large.

16.  Formalisation of membership contributions to
political parties to ensure sustainable
financial base for parties.
 Lobby for the enactment of the current draft
Bill on the Political Party Registration and
Regulation. This has potential to reduce the
risks that have been cited earlier in the
discussions

17.  Business investments: Political parties might
consider establishing special semi-autonomous
entities to champion business
investments such as in transport, real estate,
etc. An interesting lesson could be learnt
from the MCP initiative in the early/mid
1990s when they established transport
company-Tilipo.
 Caution: This could be practical where
political parties are not personalised.

18.  Establishment of political foundations: Fifty
years after independence, it is time political
parties started to think of establishing
foundations. These are critical in (a)
resources mobilisation from like-minded
political establishments elsewhere, (b)
entrenchment of party ideologies, (c) capacity
building of the party membership, (d)
research and publication of party ideas and
ideals, (e) creation of local and international
partnerships.

19. THANK YOU