In politics, it’s a fund fair
The higher the donation, the fewer the donors, the more beholden the political party would be to that said donor.
Emmanuel Joseph, The Malaysian Insider
Political parties exist to contest elections. Members of political parties go on to win seats in legislative bodies and if successful in controlling the majority of lawmakers, effectively control a nation- directly dictating national policies and fiscal decisions. With such big stakes on the line, political funding is not something to be taken lightly.
Generally speaking, there are three sources of funds that political parties get their money from. The first would be by subscription fees by the members themselves. This raises the least conflict of interests as members would naturally be supportive of their own party.
The second would be through government grants. Though not really practiced in Malaysia, many modern democracies’ ruling governments actually fund their opposition counterparts. In the House of Commons, the Short Money Fund is used to defray opposition members of parliament’s (MP) expenses and costs. The opposition leader, chief whip and deputy chief whip all get additional salaries, apart from their MP allowance – from the government. Election campaigning is subsidised based on the size of the electorate, and candidates are given free airtime to advertise their manifestos (Quite a far cry from what happens here)
In countries such as Sweden, even election campaigning itself is funded by the government – up to 90% of the income of the major political parties come from public subsidies funded ultimately by the taxpayer.
The third would be by donations either by individuals or organisations sympathetic to the party’s cause, or, in the case of lobbying, would like the party to be sympathetic to its cause. Labour related parties such as the Labour Party in the UK or its Australian counterpart, receives significant funds from trade unions.
Donations from the corporate sector are usually heavily regulated, with Australia capping the maximum donation allowed by corporations at A$250,000 (RM775,824) and individual donations permissible for tax claim purposes at A$1,500.
Almost all these countries have strict laws about accepting political funds from foreign countries.
These regulations are in place for good reason, too. There is no such thing as a free lunch in this world. Politicians aren’t destitute orphans and the political landscape isn’t one giant corporate social responsibility program. The individuals or companies funding politicians would definitely expect something in return. The higher the donation, the fewer the donors, the more beholden the political party would be to that said donor.
In the best scenarios it could be a simple request to officiate a building or launch a product. Perhaps a recommendation letter for the donor’s kid to enter a favourable university? Or perhaps a Cash- For-Questions-in-Parliament – like the Al-Fayed scandal in the UK in the 1990s?
But what if it were to move beyond what’s “harmless”?
