Private Funding of Political Parties in Zambia

 

Dr Fredrick Mutesa

 

--- Paper presented at a workshop on Private Financing of Political Parties held at Leriba Lodge, Johannesburg, 31 October to 2 November 2002

 

Introduction

Since Zambia reverted back to multipartyism in 1991, money has come to play a heightened role in the country's electoral process. This role is especially pronounced during run-ups to elections. Money has also been known to be a key factor in deciding who emerges as winner in intra-party elections. The unfolding picture is that, money has come to be closely associated with holding of political office in the country. This state of affairs is worrisome, given the high levels of poverty in the country. It simply means that, the poor, who constitute the majority in the country, cannot influence the nation's political developments. This is a serious indictment against a country whose people fought to do away with one-party rule on a platform of democratisation. Unless the growing influence of money in Zambia 's electoral process is checked, the expected gains of the multi-party political dispensation will become the preserve of the rich few.

Financing Political Parties

There are no rules on political-party funding in Zambia and the law does not compel political parties to publish their accounts or to disclose their sources of funding. Moreover, election expenditure is unregulated. Unsurprisingly, the issue of funding political parties has been a source of serious controversy. Accusations and counter-accusations of bribery of the electorate have come to characterise heated exchanges between the ruling party and its opponents.

Opposition political parties are particularly disadvantaged by the fact that business houses are reluctant to donate to them for fear of economic reprisals from government. On the other hand, the ruling party appears to have unlimited access to the use of government financial and human resources, including vehicles and control of the public media. This has created an uneven political playing field, which is to detriment of the opposition.

In more recent times, two factors have served to throw some light on the nature and influence of private financing of political parties in Zambia . Firstly, the political fall-out from Chiluba's failed bid to go for an unconstitutional third term of office, has given us some insights into how Zambia's ruling MMD has sourced funds for its operations and campaigns. Secondly, President Levy Mwanawasa's sabre-rattling antics against the people who put him in power have also revealed some uncanny financial dealings within the ruling MMD.

Chiluba's third-term campaign forced several senior members of the ruling MMD to leave the party and form their own parties. The mud slinging that has followed has exposed serious financial improprieties. A case in point involves the recent stand-off between Republican Vice President Enoch Kavindele and first MMD Defence Minister ad now opposition Zambia Republican Party (ZRP) president, Ben Mwila. Mwila had served as the first MMD national treasurer. Since he left the MMD, Mwila has been making claims that the ruling party owes him about US$1 million, which money he says was used to fund MMD activities in the run-up to the 1991 presidential and parliamentary lections. Mwila's claims have been refuted by Kavindele whose explanation is that before the MMD came to power many companies and individuals donated up to US$1, 000, 287 which was kept in an overseas party account. According to Kavindele, the MMD had decided not to open an account in Zambia for fear that the then ruling UNIP government might block the account and jeopardise its campaigns. Kavindele adds that, when the MMD decided to bring the money into the country, it used already established companies accounts, among them Mwila's company, Cordelia Investments. Mwila would then sign and issue cheques to the MMD based on the money, which the party deposited in his company's account. A further twist to the story reveals that Mwila, in his capacity as MMD national treasurer, committed the country to externalisation of US$40 million to two British firms, seven Oaks and Harrow limited for consideration of a loan of US$400, 000 to the party borrowed in June and September, 1991.

Michael Sata, a former MMD national secretary also told the press that more than 300 vehicles used by the party in the election campaigns were paid for from the Zambia Intelligence Service (Zamtrop) account (The Post, August 21, 2002). Another former MMD national secretary, Vernon Mwaanga, revealed that the MMD gave two private companies, Chani Fisheries and C. S. special exemption on duty to bring in mealie meal from South Africa which was give to all MMD parliamentary candidates on the Copper belt, Luapula, Northern and Central provinces and parts of Southern province for campaign purposes.

The President of the FDD, Lt. General Christon Tembo was also accused by the government of having received money to finance his election campaign from a man suspected to be a drug baron and a gun-runner (The Post, November 15, 2001). It was alleged that drug money was used to hire an aircraft that took Tembo around the country in the run-up to the December 27, 2001 presidential and parliamentary elections. At the height of the 2001 election campaigns, there were unconfirmed reports that government had blocked about US$20 000 which was sent to the FDD from abroad.

More recently, UPND leader, Anderson Mazoka has been accused by a South African businessman, Laban Naidoo, of having borrowed R25 million to meet his campaign expenses which he has failed to repay (Zambia Daily Mail October 28, 2002).

What has become clear from the available anecdotal evidence is that, money, whose source cannot be explained, has become part of the Zambian electoral process. This has raised fears of corrupting the electoral process and endangering national security. As a result, civil society activists have began making calls for establishment of a regulatory framework to govern the use of money in the electoral process. For the time being, however, there does not appear to be political willingness on the part of politicians from both sides of the spectrum to confront this problem. This seems to suggest that the practice of using "dirty" money is so widespread that, for now, the politicians would be unwilling to change the status quo.

The State of Debate on Party Financing

The unsavoury revelations about financing of political parties in Zambia have resulted in calls for introduction of an electoral financing law. This law, if enacted, would regulate expenditures in election campaigns and compel disclosure of election funds. Such a law is, however, considered unnecessary by some commentators who feel that the Prevention and Prohibition of Money Laundering Act already in place is sufficient -to ensure that dirty money is kept out of Zambia 's electoral process.

Advocates of legislation on political party funding, however, argue that the Prevention and Prohibition of Money Laundering Act is likely to be put to dubious and rather mischievous purposes (The Monitor, October 11-14, 2002). It is argued that this Act can be used to cripple the opposition financially. The problem is that the party in power is quick to accuse the opposition of receiving laundered and illegitimate money, especially from abroad. Yet, the ruling party itself is not in any position to explain its sources of funding. The argument, therefore, is that Zambia needs a proper regulatory framework on party financing which will be fair to all parties.

Lessons of that Last Ten Years

The secrecy that surrounds party financing in Zambia , makes it difficult to pass judgement on the influence that controversial funding is exerting on the electoral process. One thing for sure, however, is that money has corrupted the country's electoral process. It is now a norm in Zambia that a political campaign that does not involve an exchange of money or some other resources costing money is doomed to fail. The use of money is therefore undermining the development of a political culture necessary to sustain an open and democratic society.

There are suggestions also that private financiers of political parties do so in the hope of advancing their own business interests. Zambia is a country busy dismantling the public sector. Excessive use of money is a threat to the country's privatisation programme and the awarding of contracts. Money may also be used by those involved in shady dealings such as drug barons and gun-runners to make the government turn a blind eye to their heinous activities. The fear that private financing of political parties may result in mortgaging the country to criminal elements is therefore a real one.