6. Political Party Financing and Reporting in Ghana: Practitioner Perspectives

The issue of political party financing is probably one of the most discussed political issue among political parties in Ghana. Over the years, weaknesses and poor performance of political parties has been largely blamed on the inadequate funding of political parties. The chapter seeks to increase awareness and promote informed national discourse on the issue of political party financing in Ghana. The study was as a result a critical review of literature pertaining to the political party financing across the world. The review was also spiced with expert consultations and interviews on political party financing in Ghana. The study revealed that to date, political parties in Ghana have resorted to four principal sources funding their operations. Major political parties in Ghana are funded privately either through donations made by institutions, kickbacks and corruption, fund-raising or membership dues, and nomination fees paid by aspirants of executive positions in political parties as well as parliamentary and presidential aspirants during party primaries and congress. The lack of state funding of political parties accounts for the lack of political party dynamism and encourages the abuse of incumbency, political support and corruption that, in turn, undermine political party competitiveness, thereby undermining the entire system of multiparty democracy in Ghana. The paper recommends for the establishment of a number of schemes to support political parties in Ghana including a regulated fund, common fund and matching funds for political parties.