Accra, April 4, GNA - The Institute of Economic Affairs (IEA) on Friday said adopting the proposed public funding for political parties was necessary to curb corruption and enhance internal party democracy.

"Without Public Funding, a few financially endowed members who contribute to the parties would hijack and treat parties as personal property", the IEA said in a statement in Accra.

It said preventing individuals from being the sole financiers, would provide registered party members the opportunity to demand accountability and transparency on dealings within their parties. The IEA said the current support given to parties in a form of tax exemption, vehicles for campaigning and free airtime on the Ghana Broadcasting Corporation were not enough considering that running political parties was capital-intensive.

Sources of Funding, it said, included two and half percent of total VAT Revenue or such percentage as Parliament might decide, in addition to other monies accruing to the Fund.

It said that would not increase the tax burden of Ghanaians, adding that the bill would provide an extra 10 per cent of the Fund to parties whose women make up 10 per cent of their elected representatives in Parliament.

It said public funding of political parties would not necessarily lead to the formation of mushroom political parties since the package would be based on requirements such as number of votes obtained in the last general elections.

The Electoral Commission (EC) would control and manage the Fund, adding that political parties would submit quarterly and annual audited reports to account for monies disbursed.

The IEA said the bill would also advance the course of women in Ghanaian politics, saying, "Additional 10 per cent of monies from the Fund would be given to parties that would field 30 per cent of women Parliamentary Candidates

It said the fund would further strengthen parties to be independent to put out strong and effective leaders who would tackle the country's problems effectively.

The bill, when adopted will be operational in 2009. The first allocation under the bill would be made at the end of the 2009 financial year and would be based on each party's performance in the December elections.