Rise Mzansi says there's nothing improper about R30 million loan write-off (original) (raw)

Rise Mzansi Leader Songezo Zibi defended the party's decision to declare a R30 million loan write-off as a donation, saying the arrangement fully complies with South Africa's party political funding laws.

Zibi said that the loan, originally taken from the organisation "We Are the People" to fund the party's 2024 election campaign, was written off after Rise Mzansi struggled to repay it.

He said that the party already paid more than R1 million in servicing the debt but was unable to settle the outstanding amount.

Zibi argued that under the Political Party Funding Act, a written-off loan must be declared as a donation because it constitutes a financial benefit.

He also rejected suggestions that the donation was improper, saying the legislation allows juristic persons to donate to political parties within prescribed limits.

Zibi said: “The Party Political Funding Act requires that if you owe somebody money and they say you don't have to pay it anymore, you must declare that as a donation, because it's a financial benefit. So there's no money that's changed hands. This is a benefit because the loan has been written off.”