Henry Muguzi, the Executive Director, of ACFIM, says that while the private sector in many countries sponsors candidates and parties for elections, some countries have regulations while others have abused this due to the absence of or inadequacy of the regulations.
The private sector and civil society are pressing for regulation of the financing of political activities, especially during elections. This is aimed at reducing corruption and enhancing service delivery and good trade practices.
This comes after a report by the Alliance for Campaign Financing Monitoring, ACFIM, which quotes the private sector as accusing politicians of demanding money from them with threats of consequences.
Henry Muguzi, the Executive Director, ACFIM, says that while the private sector in many countries sponsors candidates and parties for elections, some countries have regulations while others have abused this due to the absence of or inadequacy of the regulations.
In Uganda, the electoral laws only bar financing of activities by foreign governments or persons that are deemed enemies of the country.
Muguzi says people who have financed a winning party or candidate have been given economic favors, especially in government contracts, and end up providing poor services.
Speaking on Wednesday at the dialogue on election financing by the private sector, Dr. Daniel Walyemera, lawyer and the Dean of the Faculty of Law at Cavendish University condemned the practice, saying it breeds corruption.
Walyemera said all those that agree to fund the party, do so expecting a return after the election and that return will usually be at the expense of good governance.
He says in cases where for example procurement laws have been disregarded and government contracts awarded by way of a directive, the beneficiaries are being rewarded for political aid.
Walyemera says political financing by the private sector is what led to the infamous “state capture by Gupta Family” in South Africa, which refers to the influence the family had on the government of Jacob Zuma.
In the investigations of the controversy, it was revealed that the Gupta influence went as far as deciding who should be on the country’s cabinet.
This, according to Walyemera can happen in any country, especially where the investors have enough resources to dictate the fate of a president or party.
Jovah Kamateeka, a lawyer and former Member of Parliament blamed the whole issue on the commercialization of the politics of Uganda, where candidates have to solicit money in order to carry out campaigns.
This according to her, means many parties cannot ably sponsor their candidates and therefore have to seek the support of other people.
However, she says in many cases, people give financial support willingly and cannot, therefore, have the powers to influence the leaders they financed during the campaigns.
Isa Sekitto, the Spokesperson KACITA-Uganda and board member at the Private Sector Foundation, Uganda, countered her, saying many people have been witch-hunted for either refusing to sponsor certain candidates or have helped candidates in opposition.
Civil society warned of a looming challenge for the country unless the politics of the country are reformed to follow the rule of law.
They attributed the 2012-2013 economic crisis in Uganda which was characterized by high inflation, to the high spending levels during the campaigns.
It is also alleged that about 2 trillion shillings worth of currency was printed without following the due procedure and this abetted inflation.
Julius Mukunda, the Executive Director of Civil Society Budget Advocacy Group, said allowing private individuals to sponsor parties and candidates can be a political risk because they usually serve their own interests.
Mukunda adds that such companies also have the power to demand favors like tax incentives, which then affect revenue collections and service delivery.
Sekitto also said that the business terrain has been made difficult by the ability of some of their colleagues to influence decisions that favor some operators and not others. URN
