THE PPP AND THE PNCR ARE NOT SHORT OF MONEY

May 22, 2014, By KNews, Filed Under Features/Columnists, Peeping Tom, Source

Mass-based political parties such as the PPP and the PNCR do not go broke. As such, speculation about the PNCR being cash-strapped should be dismissed.

The mass-based political parties in Guyana cannot go bust because they raise massive amounts of funds during election time. In the run-up to the last election, one person from APNU said that the partnership hoped to raise $1.2 billion. They may not have been able to raise that much money but they must have raised hundreds of millions of dollars. Not all of that money is going to be spent in the campaign and so the surplus is likely to have gone into the party’s coffers.

During election campaign, political parties receive donations from local and overseas supporters. There was a time when the bulk of campaign financing came from overseas. But that particular source of financing cannot compare with what is now raised locally.

Today, the bulk of the campaign financing comes from local businesses. During election time, many businessmen set aside two sets of envelopes, one for the ruling party and one for the opposition party. They grease both sides as a form of political insurance.

Some businessmen even set aside two sets of envelopes for each party that they will donate to. When the party activist who is soliciting the donation comes around he gets two envelopes. He is told that the first one is for the party and the second one is for him since the businessman really likes him and wants to give him something. This is a way in which some businessmen ensure that they have an inside contact within each political party. In the event that they get into some problem or need a favour, they have someone in the political establishment that they can turn to.

The second reason why mass-based parties cannot go bust is because they have substantial real estate assets and investments. Both the PPP and the PNCR have always owned a large number of properties. The PNC when it was in power was able to acquire a great many properties, while the PPP at one stage had its own commercial arm. The headquarters of the PNC was acquired while it was in power and it is a massive piece of real estate.

Mass-based parties would also have investments. It is unthinkable for these parties not to consider investing so as to ensure financial security. The parties most likely have investments and some of these investments may even be in the media.

Thirdly, mass-based political parties have acquired a reputation for being able to gain lucrative prices for their real estate assets. After the 1992 elections, the PNC was said to have sold one of its properties for in excess of fifty million dollars which at the time was an obscene sum since even properties in the heart of Georgetown’s commercial district were not fetching a price tag of in excess of ten million dollars.

It is now being rumored that the PNCR is being offered close to seventy five million dollars for land on the site where its headquarters is located. That is an excellent price, if it is true. And if such an offer is made the PNCR should take it because it may never get a better offer.

Both the PNCR and the PPPC cannot conceivably become cash strapped. They have a wealth of resources to call on in the event of financial difficulties. They have both local and overseas supporters; they have party groups that can raise funds. There used to be a time when the CIA gave covert financial support to the PNC. During the shortage of newsprint in the 1980’s, the Russians gave the Guyana Government newsprint on condition that some of it be sold to the Mirror newspaper which is a pro-PPP publication. Then there are always businessmen who are prepared to give monies to these political parties as a forward investment. These investors give money in the hope that if and when the party gets into power, the businessmen would enjoy favours.

The idea therefore that the PNCR or even for that matter the PPP is cash strapped should be dismissed as old story. These parties may need more money for election campaigning. But you can be certain that the accounts of these parties are far from being in the red. Never have been; never will be!