Good Party Fined R90,000 In 2026 Ruling Over Undeclared R900,000 2021 Election Donation

The Good party and its secretary-general, Brett Herron, have been fined R90,000 in a 2026 Electoral Court ruling over an undeclared R900,000 donation linked to the 2021 local government elections. The court found that the party and Herron contravened the Political Party Funding Act after the payment was not disclosed to the Electoral Commission of South Africa (IEC).

The case relates to T-shirts and marketing materials ordered by Good ahead of the 2021 municipal elections, with Electrox Properties paying R900,000 towards the total cost of R1,972,365. The Electoral Court found that the payment amounted to a donation in kind and criticised what it described as a “deliberate attempt to conceal the donation”.

The ruling was made in chambers based on the court papers, without oral argument or evidence being heard. Good has rejected the judgment and confirmed that it intends to appeal the decision.

Good Party R900,000 Donation Case Linked To 2021 Elections

The Good party donation case came before the Electoral Court after former party member Shaun August reported details of the transaction to the IEC in 2023. August had been expelled from Good in May 2023 before later rejoining the Democratic Alliance (DA).

Judge Leicester Adams said August had been responsible for negotiating the procurement of the T-shirts and securing the sponsorship at the time. “Mr August was also the official at the Good party who, at the relevant time, was the person responsible for negotiating the procurement of the T-shirts and who was directly responsible for securing the donation.”

Adams said August’s assertion that Good had not paid the R900,000, and that it had instead come from a sponsor, was not seriously challenged by the party in its answering affidavit. The IEC subsequently investigated the matter and corroborated August’s initial report.

The investigation found that Good had ordered the T-shirts and marketing material from Kairos Communications. Electrox Properties subsequently paid R900,000 to Incorp Trade and Investment CC, a company linked to Kairos.

“Moreover, the payment of the R900,000 is confirmed by the invoice from Kairos Communications. In that regard, the evidence indicates that Electrox Properties paid R900,000 to Incorp Trade and Investment, but the paperwork recorded that the said sum was received by Kairos Communications.”

The judge said the evidence supported the conclusion that Electrox Properties had paid the money to Kairos on behalf of Good. “This, in my view, can safely be interpreted as Electrox Properties having made payment to Kairos Communications of R900,000 on behalf of the Good party,” the judgment said.

Electoral Court Criticises Good Party’s Explanation Of 2021 Payment

The Electoral Court also rejected the explanation given by Good and Electrox Properties for the R900,000 payment. Adams described the party’s response as an explanation that “should be rejected out of hand”.

“What is more, the denial by Electrox Properties of this payment to Kairos on behalf of the Good party rings hollow. The explanation by Electrox Properties that the payment was in respect of ‘a commercial transaction’, the nature of which it has chosen not to disclose, is so far-fetched that it can be rejected out of hand if regard is had to the evidence as a whole.”

Adams pointed to correspondence between August and Govender, the owner of Kairos and Incorp, concerning payment for the T-shirts. The judge said the communications showed that Govender had asked August when the money would be paid.

“Importantly, the payment of the R900,000 followed enquiries by Mr Govender (the owner of Kairos and Incorp) to Mr August, during their written communications, as to when the payment would be made for the T-shirts.” The judge also noted that Govender acknowledged receiving the payment and confirmed this with August.

“That, for me, puts paid to the version of the Good party,” Adams said. The judgment further noted that Herron, who was the party’s accounting officer, had been copied into most of the correspondence concerning the R900,000 payment and donated T-shirts.

The court considered the definition of a donation under the Electoral Act, which includes a “donation in kind”. This covers certain payments made on behalf of a political party, as well as assets, services, facilities and sponsorships provided to a party outside commercial terms.

Good Party Fined R90,000 As Brett Herron Plans Appeal

In deciding on the appropriate penalty, the court said the matter was more serious than an accidental failure to comply with political funding requirements. Adams said the evidence pointed to an intentional effort to keep the donation from being disclosed.

“This is not a minor case where respondents may have overlooked their obligations and unwittingly contravened the Act.” Adams added: “According to the investigation report, it appears that there was a deliberate attempt to conceal the donation. I agree that this is material.”

The judge said the penalties needed to reinforce the importance of transparency within South Africa’s electoral system. “In my view, after weighing up all the relevant factors in the matter, including the requirement that a strong message must be sent out to role players in the electoral justice system that there should be transparency, the penalties to be imposed should range between R40,000 and R50,000,” he concluded.

The court fined Good and Herron R90,000, while Electrox Properties was fined R40,000 for contravening sections 9 and 12 of the Political Party Funding Act. Acting Judge Steyn and Professor Moses Phooko concurred with Adams’s judgment.

Good has rejected the ruling and said it will appeal. “The party operates on a very modest budget and scrupulously adheres to requirements of the Act. The Electoral Court reached its judgment without hearing argument or evidence.”

“The judgment reflects the court’s reliance on the fabrications of a ‘whistleblower’ – who happens to be a disgruntled former party official who was expelled for pocketing party donations. Our legal advice is that the court erred in several respects, directly impacting the outcome,” Herron said in a statement issued on behalf of the party.

The DA and August have welcomed the 2026 judgment. August said the case demonstrated the seriousness of failing to disclose political funding.

“There is no credibility left in that party, and now the Electoral Court has finally ruled that it is actively falling foul of the law,” August said.

The ruling comes as Herron is campaigning for the Cape Town mayoral position in a joint bid with Rise Mzansi. The 2026 judgment, however, concerns funding and transactions dating back to the 2021 local government elections.