Home arrow Archives arrow Political Diary arrow Political Diary 2010 arrow MPLADS: Open Licence To Loot: VOTERS PAISA DOWN POLITICAL DRAIN!, by Poonam I Kaushish,8 May 2010
 
Home
News and Features
INFA Digest
Parliament Spotlight
Dossiers
Publications
Journalism Awards
Archives
RSS
 
 
 
 
 
 
MPLADS: Open Licence To Loot: VOTERS PAISA DOWN POLITICAL DRAIN!, by Poonam I Kaushish,8 May 2010 Print E-mail

Political Diary

New Delhi, 8 May 2010

MPLADS: Open Licence To Loot


VOTERS PAISA DOWN POLITICAL DRAIN!

 

By Poonam I Kaushish

 

When gold speaks all tongues are silent. This maxim held sway as the curtain rang down on the second half of Parliament’s Budget session on Friday last. Clearly, happy days are here again for our jan sevaks after the double whammy bonanza of a five-fold pay hike and the Supreme Court’s seal of approval for the MP Local Area Development Scheme (MPLADS). No matter, that it’s the aam aadmi’s hard-earned money going down the political drain!

The break-neck speed with which our netagan collectively agreed to the massive increase in their pay to Re1 more than a Government secretary, read Rs 80,001 plus unlimited freebies was simply breathtaking. Buried in the euphoria was the vocal velocity our Right Honourables had unleashed to force adjournments in both Houses and bring Parliament to a grinding halt times out of number. Be it the IPL googly, phone-tapping scandal, DMK’s Raja 2G spectrum award scam, women’s reservation Bill et al.

The MPs glee knew no bounds when the Supreme Court served the icing on their cake: A five-judge Bench upheld the Constitutional validity of MPLADS under which MPs are allocated Rs 2 crore annually for development of their constituencies. Recall, the scheme had come under judicial scrutiny after a sting operation in 2005 showed some MPs, later expelled, allegedly demanding money from contractors to award work for projects under MPLADS. It gained currency following then Speaker Somnath Chatterjee assertion that the scheme was devised to "sabotage the emergence of panchayats, which were autonomous of the weight-throwing MPs and MLAs".

Sadly, by putting its weight behind MPLADS, the Supreme Court has simply given legitimacy to a scheme that is fundamentally unconstitutional. True, the Court is correct when it asserts that mere allegations of misuse of funds cannot be a ground for scrapping it given that both Houses have standing committees to monitor the scheme along with various levels of accountability for its implementation.

But at the same time it cannot ignore the harsh truth that funds meant for public good are siphoned-off to greedy private pockets. In a country which breathes bribe no work is done without palms being greased and ‘cuts’ incorporated into the cost and commission paid to those who matter. To the tune of mind boggling crores. Year after year for over a decade since the scheme’s inception by Congress’s Narasimha Rao’s Government in 1993.

Epitomised by BSP supremo Mayawati’s  directing her MPs in 2003 to part with a part of the “commissions” they made from their MPLADS funds for party coffers. She told them: “Arre bhai sub miljul kar khao”.  Adding, that even the most honest MP makes Rs 5 lakh annually by sitting at home. Last year, singer-turn-novice Trinamool MP Kabir Suman in a tell-all revealed, “Local leaders who already control Rs 400 crore of the panchayat samiti and zilla parishad monies, want the funds and won’t let me spend Rs 1 crore of the Rs 2 crore I receive annually on installing 44 deep tube-wells in my constituency.”

Think. An MP in connivance with the DM ensures a cut out of every scheme recommended by inflating the cost and taking kickbacks from the contractors. The babu is happy and he makes the MP happier. A smart duo nets up to a maximum of Rs one crore of Rs 2 crore and an honest duo a minimum of Rs 50 lakhs. Asserted one, it is a "kind of financial rehabilitation package for the political cadre." For their “protection”, or for other “services”. Demonstrating the urgent need to scrap the MPLADS.

Besides, the scheme is violative of Article 14 of the Constitution (Right to Equality) as it gives a sitting MP an unfair political advantage against their political rivals. As also, arbitrary powers to an MP without there being proper checks and balances, monitoring and accountability regarding the money being spent under it. In fact, arm-twisting by powerful constituents to distribute the work among favoured contractors was the norm.

Importantly, the Administrative Reforms Commission, headed by Veerappa Moily now Union Law Minister wanted the scheme scrapped as it “"seriously erode the notion of separation of powers.” Whereby it gave legislators a direct role in disbursing funds for capital projects and infringed on the rights of the local Government leading to a “conflict of interest” and serious accountability consequences.

In the present system, MPs decide how to spend the money and funds are disbursed through the district administration. Local bodies are neither consulted nor involved in the details of execution despite Articles 243G and 243W entrusting local bodies with the powers to prepare and implement plans for economic development and social justice. Questionably, should MP’s be administering funds and determining their specific resource allocation? Doesn’t it compromise the oversight function that legislators ought to play? Who should the voter hold accountable?

More. The Comptroller and Auditor-General was the first to expose the failure of MPLADS and the drain it is on the Exchequer in its two reports pertaining to 1993-97 and 1997-2000. Its 2001 report lucidly pointed out that funds were released without any correlation with their end use. The DC failed to obtain the utilisation certificate and inflated expenditure to the Ministry, based on the amount released to the implementing agencies without checking the UCs.

 

Many cases were found where money was sanctioned for maintenance of roads where none existed. There was underpayment of wages, fake muster rolls and bogus expenditure to the tune of 30%. All one needed was to pay a price and the money was yours for the asking. Anything was game. Shockingly, funds were used for projects prohibited under the scheme: memorials, office or residential buildings, commercial organizations, private or cooperative institutions, places of religious worship and purchase of inventory or stocks. Sadly, there is evidence of Parliament itself sanctifying violations.

In fact, the loot system has been perfected to such an extent that the CAG could detect only 13 cases of suspected fraud and misappropriation of funds in 7 States involving Rs 118.36 crore. It recommended scrapping MPLADS and wanted the funds  transferred to local Governments, as suggested by the National Advisory Council.

The most dangerous implication of MPLADS is that it offends the letter and spirit of the 73rd and 74th Constitutional Amendments which sought to create a third stratum of local Government in the country; Panchayats. State legislatures are now required to endow panchayats and municipalities ‘‘with such powers and authority as may be necessary to enable them to function as institutions of self-Government”

Look at the dichotomy. While we recognize that local Governments (Panchayats and Municipalities) are best suited to assess local needs and are better placed to respond to them than the State or Centre, they are starved for funds to perform their constitutionally assigned roles. While MPs, thanks to MPLADS enjoy the privilege of an uninterrupted yearly flow of funds to do the job of the panchayats.  Underscoring the need to devolve funds directly to panchayats rather than to the MPs.

This is not to suggest that the MP is not responsible or accountable for the development of his or her constituency. Rather, it suggests that the MP should do what he or she is best equipped to do. Instead of directly spending money on civic services an MP ought to be lobbying for funds from the Central Government to reach local bodies and pushing for appropriate policy decisions. To ensure that services reach their constituents, the MP should monitor the functioning of the local bodies and leave them to provide the civic services demanded by their constituents. Alternately, allowed to have a say in locating projects under official schemes for health centres and schools.

What next? It is time to have a serious rethink on continuing the scandalous MPLADS. Notwithstanding, the Supreme Court verdict. Morally, Parliament has to come clean on MPLADS. The public need to know how it has been (mis)used all these years and what is being planned to correct it. In sum, even as our Right Honourables rejoice over their hefty pay packets and Rs 2 crore per year to boot, it is time to apply the brakes. Cry a halt to the open licence to loot and scoot of Rs 1590 crore annually! --- INFA

(Copyright, India News and Feature Alliance)

< Previous   Next >
 
   
     
 
 
  Mambo powered by Best-IT