This may encourage corruption / bribery instances. For example, companies/individuals paying bribes to a particular political party in favour of getting government contracts or letting them off the hook from compliance violations.
This happened in India, where government had introduced electoral bonds. The information of donation would not be made public, and as a result donors of such bonds were observed making substantial amount of donations. Supreme Court of India stuck down this mechanism citing violation of right to information and likelihood of corruption instances.
The Court also forced a release of some documents which provided information about donations and donors. See this report. Very interestingly, most of the donations come around allotment of some very big government contracts, mentioned here.
This may encourage corruption / bribery instances. For example, companies/individuals paying bribes to a particular political party in favour of getting government contracts or letting them off the hook from compliance violations.
This happened in India, where government had introduced electoral bonds. The information of donation would not be made public, and as a result donors of such bonds were observed making substantial amount of donations. Supreme Court of India stuck down this mechanism citing violation of right to information and likelihood of corruption instances.
The Court also forced a release of some documents which provided information about donations and donors. See this report. Very interestingly, most of the donations come around allotment of some very big government contracts, mentioned here.