Can CCM save itself from toxic effect of handouts?

Dar es Salaam. The ruling party CCM will be facing a major test after its chairman President John Magufuli moved to do away with the dependence syndrome that for many years had seen the emergence of a circle of business tycoons and private companies placing bets on the ruling party through oiling its campaigns and operations in cash and in-kind benefits.

Dr Magufuli has repeatedly made his point clear that gone are the days when CCM cadres came knocking on the doors of well-connected businessmen with begging bowls – seeking funding for party activities. He said the party would now have to be self-sustaining, partly by making good use of the government subsidies provided to registered political parties.

CCM enjoys the lion’s share of subventions from the government, which are disbursed from an amount determined by the minister, taking into account the country’s economy, and 50 per cent of which is distributed on the basis of the number of constituencies won, and the other 50 per cent to parties that got at least five per cent of the total number of valid votes cast.

Demanding transparency in private donors’ role in the party and campaign finance will be a major cultural break for CCM, and it’s just one of the raft of measures that the new chairman took to reform the party immediately after assuming chairmanship last year.

Before the 2015 general election, it was common practice for the ruling party to mobilise funding from well-wishers, who included individual businesspersons in and outside the organisation, and various local companies that supported its cause.

One of those who openly donated funds to the party is prominent businessman Jaffer Sabodo. Another prominent businessman, Mohammed Dewji, named by Forbes as the 21st richest man in Africa in 2015, was once the party’s MP for Singida before opting out of active politics.

Businessman and former Igunga MP Rostam Aziz was a one-time CCM treasurer responsible for fundraising.

There is no report suggesting that private donors get privilidges from the ruling party. And, in announcing the decision to change CCM’s approaches to funding, Dr Magufuli noted that the door was still open to those who needed to contribute to party activities.

However, he suggested that it will have to be done in good faith – no strings attached – no guarantee for political favours in return.

In other words, there is a new demand that grants, donations, gifts and assistance in any form whatsoever for any one or more of the objects of the party can no longer be done underground.

In the meantime, to cover for the lost source of revenue, the party decided to embark on cost-cutting, according to CCM Ideology and Publicity secretary Humphrey Polepole.

He says this necessitated the reduction of operational costs of the party’s National Executive Committee, for instance, from the previous Sh600 million per meeting to approximately Sh100 million. The party has also significantly reduced the number of members to its key organs – from the national to the ward levels.

This is expected to significantly cut costs through a reduced allowance bill.

Was the timing good for CCM?

Granted, there is fierce competition in the political arena. Opposition parties have grown stronger over the years, and now pose a genuine threat to the only party that has ruled the country since independence.

However, the success of stifling external financial assistance will largely depend on how far the opposition goes in consolidating its achievements over the years, according to political analysts.

Escalating costs

Dr Bashiru Ali, a senior lecturer at the University of Dar es Salaam (UDSM), says one of the reasons for the escalating operational costs of the country’s political parties since the introduction of the multi-party system in 1995 is the tricky battle for survival in the face of increasing competition.

He believes the success of any reforms within CCM will take more than reducing the number of members in its structures.

But in any case, the litmus test for the party’s self-sustaining policy will be its internal elections and the 2020 general election.

“It will be interesting to see how the party escapes the costs that will come with the 2020 general election – from the expenses the campaign team is likely to incur, payments for agents, advertising and running costs of the pool of vehicles to be used,” he says.

Former CCM chairman Jakaya Kikwete once noted that the party still heavily relies on its members’ subscription fees and sales of its products, yet the going has always been tough, necessitating the donations from the business community, especially at election time.

Most of those who fund party activities disappear once elections are over – though political analysts will tell you that there is always something in it for them, some kind of favours in the form of tenders and related mega supply deals with the government.

But quite how much CCM, or opposition political parties for that matter, spend on campaigning, no one knows, because of a complete lack of transparency in the funding of political parties.

This is not a Tanzanian, but rather an African issue. All over the continent, there are serious concerns over what many believe is the toxic impact of money on.

It’s possibly the problem of money in politics that the new CCM leadership is seeking to address by not wining and dining with private donors beyond the normal hours; but without the political will to put in place a regulatory regime best suited to the Tanzanian context, such measures may not take care of the worst excesses there are.

Walk a fine line

According to Dr Ali, CCM will have walk a fine line come election time because of the slim chances that all of its candidates will be able to bear the high costs of campaigns.

Unless there is a back-up plan, the possibility that some of the candidates will clandestinely go begging for funding from well-wishers is high. The party may find itself caught between rock and hard surface – if disciplinary action is taken against them, at a crucial election moment, this may plunge the party into chaos.

In the face of the reality that the party requires reliable resources to sustain and operate a basic party structure, to contest elections and to contribute to policy debate, some analysts are of the view that it would likely be unrealistic to thwart, outlaw or undermine the role of private donations in CCM.

The party’s number of subscribers is around 8.7 million, who if they pay the annual subscription fee of Sh1,200 each, can raise Sh10.5 billion, according to Mr Kikwete. However, that source of financing is unreliable. For example, the party collected Sh500 million in 2015.

UDSM political science lecturer Richard Mbunda suggests that CCM’s self-sustaining dream will also largely depend on what the opposition does to build itself into a stronger force against the establishment.

“It (CCM) stands a chance to successfully forge ahead with its self-sustaining plan through increased membership and subscriptions, and that can be easily realised in the event that opposition parties fold their hands and not do anything much to build themselves up,” he says.