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)
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