Editor at Large

STANDARD Bank and the Liberty Group said yesterday they would contribute a total of R6,5m to political parties contesting the April elections, becoming the latest in a string of large companies to decide to make public their donations.

Standard Bank and Liberty Group chairman Derek Cooper said the companies had decided to depart from their long-held stance against political donations in recognition of SA's 10th anniversary of democracy.

In a twist, the companies have decided that only half of the donated amount will be distributed before the elections. This will be according to the proportion of the seats the parties gained in the 1999 elections. The second half will be distributed afterwards, in accordance with the outcome of the election.

To receive the donations the parties concerned must participate in the election. So parties that participated in the 1999 election but are not doing so this year will not get any money.

According to the breakdown, the African National Congress will garner the majority of the funding, receiving just more than R2m in the first tranche.

By comparison, a small party like the Azanian People's Organisation will get just R30000.

Cooper said sticking strictly to the formula determined by election results was the only objective way to determine the proportion that each party should receive.

Objectivity was crucial for companies like Standard Bank and the Liberty Group, particularly as the bank's staff supported a wide range of political parties.

Donations would not be monitored, nor conditions attached to their use, Cooper said.

The amounts from Standard Bank and the Liberty Group are the third publicly announced donation by major corporations to political parties.

Both Anglo American and AngloGold have announced they will donate to parties, and both have more or less made their contributions in proportion to the parties' political support.

However, there is no consistent approach by corporate groups to the issue.

Absa has acknowledged that it has in the past, and will again, make donations to political parties. But Absa was cautious about releasing figures on its donations to political parties, said media service manager Errol Smith. "We believe that by revealing the figures the public may perceive the donations in isolation."

In addition, some of the political parties were Absa's customers. Due to the banking code Absa was not at liberty to reveal the financial positions of its customers without their permission, Smith said. Absa would not object if political parties released the information, he said.

Nedcor, by contrast, does not intend donating either to political parties or to projects specifically undertaken under the auspices of political parties.

The bank's head of corporate governance, Selby Baqwa, said the group's stance was apolitical, a principle that extended to funding. "From time to time, Nedcor assists with worthy causes initiated by civic organisations, and under these circumstances it is not inconceivable that the initiative may involve a political figure, but that is as far as it goes."

Richard Calland, head of the Institute for Democracy in SA's Right to Know campaign, said he was encouraged by the stance being adopted by some large companies. The campaign is currently engaged in legal action against South African political parties intended to force the disclosure of corporate funding.

Mar 02 2004 07:30:24:000AM Tim Cohen Business Day 1st Edition