ANC mulling retrenching 50 percent of staff: Reports

Leaked recordings from the NEC meeting indicate party treasurer Paul Mashatile has proposed the staff cut.

Multiple media reports indicate that the ANC’s is in financial crisis, with leaked recordings from the ruling party’s national executive committee (NEC) meeting this weekend indicating that party treasurer general Paul Mashatile has proposed a 50 percent staff cut.

According to the reports, Mashatile is expected to provide a comprehensive document, that will also include the possibility of increasing levies and membership fees, to the party’s officials this week.

Concerns about Luthuli House finances and its inability to pay employee timeously have been in the media for a while. In April 2021, the ANC had reportedly sent letters to its Luthuli House employees following a delay in salary payments and had at the time indicated that financial uncertainties would continue.

In 2020, it was reported that Covid-19 had had an effect on the ANC’s finances and contributed to late payment of salaries.

President Cyril Ramaphosa recently announced that local government elections will take place on 27 October 2021 and if recent reports are correct, the ANC may “cut our staff by 50 percent” before then during a “process of restructuring and resizing”.

The leaked information from the NEC meeting is also believed to contain information relating to alternative avenues of funding that will be explored, including crowdfunding and other types of fundraising.

The careers section of the ANC website redirects to vacancies advertised on the Government Communication and Information System (GCIS) jobs page and no information could be found on the number of employees at Luthuli House.

According to a July 2020 report in the Daily Maverick, however, the ANC employs around 387 staff nationally and while its operational costs are R6 million, the party’s salary bill is between R20 million and R21 million.

The ANC has yet to officially comment on the matter.