Transparency and disclosure of political party funding (MW0013)

1. What problem does the commitment aim to address?
Political party financing in Malawi presents significant challenges that undermine democratic governance and fuel systemic corruption. The ORPP was established in 2018 and was only operationalized in 2024. The ORPP has struggled to access timely and complete information on political party financing due to the absence of implementing regulations for the Political Parties Act, 2018, limited institutional capacity and weak enforcement of disclosure obligations.

2. What are the causes of the problem?
The root causes of this problem include:
(a) Difficulty in accessing information on political party financing by the ORPP: While the RPP is given powers in Section 6(2)(b) of the Political Parties Act, 2018 to ensure publication of audited annual accounts of political parties, the RPP has difficulties accessing information on how much eligible parties receive because the ORPP is left out in the initial phases of disbursement of the funds and only comes in later in the process. The process through which the RPP has to follow in pursuit of accountability of public funding for parties is cyclic and cumbersome. Therefore, the RPP has to struggle to access information on how much political parties received, before presenting the information to the Auditor General for auditing the parties’ accounts and deciding and recommending on whether parties should be given the next tranche or not, based on how the funding was utilized. This is in contrast to what happens in other countries, such as Kenya and South Africa, where public political party finances are channeled directly through the ORPP, which makes the information on political party funding readily available to the RPP.
(b) Arbitrary enforcement mechanisms and a lack of a structured allocation formula: Section 40(2) of the Constitution provides for political parties gaining at least 10 percent of the national vote to qualify for financial support from the state. As it stands, Treasury transfers political party funding to Parliament and Parliament transfers the money to the party leader through his or her bank account. Although legislation, such as the Public Finance Management Act, 2022 (PFMA), for the accountability of public resources exists, no leader of a political party or person who has received funds under Section 40(2) of the Constitution has been held to account for the resources received. Additionally, in Malawi, the allocation process remains arbitrary. In contrast, for example, in Kenya, a percentage of the national budget is allocated to political parties.
(c) Reluctance by political parties to account for public financing: Although Section 4 of the Political Parties Act, 2018 mandates private funding and donation disclosures, political parties are reluctant to disclose other donors due to cultural norms and corruption risks. This lack of transparency could result in government contracts being used as repayment mechanisms for financiers. Further, cultural perceptions discourage public disclosure of financial gifts, exacerbating opacity.
(d) Limited capacity and resources for the ORPP to effectively monitor and enforce compliance: Being a newly established institution, the ORPP has limited capacity, both human and financial. This has made it difficult to enforce political party financing laws effectively. In this case, the ORPP needs to have support in the form of human resources that understands money laundering, terrorist financing issues and has investigative capacity. To effectively deal with these matters, the ORPP needs to closely collaborate with MEC, ACB, and FIA. Further, the utilization of a manual registry system for political party financing (paper-based), makes documentation and compliance tracking inefficient and prone to manipulation.
(e) Knowledge gaps in political parties and limited public awareness of the law: Existing knowledge gaps among political parties that the ORPP is responsible for enforcement, compounded by low public awareness and stakeholder engagement on political party financing laws, further contribute to non-compliance.

Commitment Description

1. What has been done so far to solve the problem?
The ORPP was established and operationalized, with its cost centre and dedicated budget vote to facilitate direct funding, and the RPP was recruited. Draft regulations to enhance the ORPP’s mandate and operationalize the Political Parties Act, 2018, are at an advanced stage of development.

2. What solution are you proposing?
The commitments under this policy area aim at ensuring that public resources given to political parties are accounted for and used accordingly for the intended purpose. The Government will:
(a) Lobby that the ORPP should be involved in the process of political party funding.
(b) Enhance public disclosures of audited accounts of political party funding.
(c) Finalize the development of regulations to operationalize the Political Parties Act, 2018. They should incorporate tracking of political party financing from private and other sources. Additionally, they must clarify what financial information should be disclosed and how this aligns with access to information and anti-corruption obligations.
(d) Strengthen the ORPP and ensure it has adequately skilled staff, funding, and capacity to monitor and enforce compliance. Additionally, enhance staff capacity on basic knowledge in anti-money laundering, terrorist financing, and financial investigation skills.
(e) Increase inter-agency coordination and collaboration between the ORPP and other oversight entities such as ACB, FIA, MHRC, MEC, NAO, and Parliament. These institutions play key roles in accessing information and tracking illicit financial flows, while the ORPP acts as a user of this information.
(f) Digitalise the Political Party Registry by developing an online system to manage political party financing data, making it easier to track and disclose information.
(g) Strengthen coordination and enhance partnerships between government institutions, CSOs, media, development partners, and the private sector to increase transparency in political party financing.
(h) Conduct sensitization campaigns on political party financing regulations to political parties and the general public, as well as strengthen mechanisms to enforce compliance with political party financing laws.
(i) Enhance the role of CSOs and citizens in ensuring transparency and accountability in political party financing.

3. What results do we want to achieve by implementing this commitment?
This commitment is expected to achieve:
(a) Improved transparency and accountability in how public and private political party funding is managed.
(b) Strengthened capacity of the ORPP to monitor and enforce compliance with political party financing laws.
(c) Increased disclosure of political party financing information.
(d) Strengthened institutional coordination and oversight.
(e) Increased public and political party awareness of legal requirements and citizen engagement in monitoring compliance.

Commitment Analysis

1. How is this commitment relevant to MW2063?
This commitment contributes to Enabler 2: Effective Governance Systems and Institutions. MW2063 identifies corruption and lack of accountability as major barriers to development and commits to strengthening oversight institutions and promoting political integrity. This commitment supports those goals by regulating political finance, promoting disclosure, and empowering citizens and institutions to monitor how public and private funds influence political outcomes.

2. How will the commitment promote transparency?
Transparency will be promoted through the public disclosure of audited political party accounts and donor information. Regulations will require political parties to report both public and private contributions, and a digital registry will enable open access to financial information on political party financing. These systems will improve visibility into how funds are allocated, used, and reported.

3. How will the commitment help foster accountability?
The commitment empowers the ORPP and other oversight institutions to investigate and act on financial irregularities. By establishing regulations, digitizing records, and increasing collaboration with the ACB, FIA, MHRC, MEC, NAO, and Parliament, enforcement will be more consistent. Regular publication of financial disclosures and reporting will also subject parties to public and institutional scrutiny, ensuring compliance.

4. How will the commitment improve citizen participation in defining, implementing, and monitoring solutions?
The commitment will promote civic engagement through CSO-led public awareness campaigns and sensitization workshops on political party financing laws. Citizens and CSOs will be able to access and analyze political party financing data, raising questions and flagging issues as necessary.

Commitment Planning

Milestones | Expected Outputs | Expected Completion Date

Publish political party financing and audited accounts | Periodic public declarations of political party finances and publication of annually audited reports | December 2028

Full disclosure of political party donors and financing structures | — | December 2028

Enhance and enforce the regulatory framework to regulate public and private funding for political parties | Regulations to operationalize the Political Parties Act, 2018 enacted and gazetted; Regulations and application of the law on political party financing enforced | October 2025; December 2028

Increased capacity of the ORPP to regulate political parties | Government funding for the ORPP increased; Political Party Registry digitized | July 2028; December 2027

Enhance the role of CSOs and citizens on political party funding | CSOs and citizens’ capacity to hold political parties accountable on political party funding enhanced; CSO engagement on political party funding increased; CSOs and citizens play an active role in fostering political party funding transparency | December 2026; December 2028; December 2028

Enhance collaboration and coordination with relevant MDAs | Collaborative and coordination meetings with stakeholders and oversight actors (National Assembly, ACB, FIA, AGD, MEC, OoO, MoJ and CSOs) held regularly | December 2028