Political Diary
New Delhi, 19 November 2011
Surrogate MPs Crorepatis Club
CONFLICT OF
INTEREST, TOH KYA?
By Poonam I Kaushish
Till yesterday, it was India’s best known political
secret. Today, it is out in the open: Debut of ‘surrogate’ MPs in the Rajya
Sabha. Epitomising as never before that politics is all about contaminated
smog, toxic waste and sleazy fumes!
Underscored by the eye-popping Register of Interest, made
public by a RTI application whereby 92 of Rajya Sabha’s 232 MPs have pecuniary interests
including remunerative directorship, regular remunerated activity, shareholding
of controlling nature, paid consultancy and professional engagement.
Scandalously, MPs are members of Standing Committees in
which they have business interests. Take Maharashtra’s
newspaper baron Vijay Darda and Reliance Petroleum’s director YP Trivedi both are
part of the Standing Committee on Finance and the Consultative Committee of
Commerce and Industry Ministry.
Ditto the cases of Bihar’s
pharmaceutical tycoon Mahendra Prasad aka
'King Mahendra', Andhra Pradesh’s tobacco exporter and liquor distributor
Sambasiva Rao and industrialist MP Srinivasulu Reddy. Jharkhand’s Essar man Nishikant
Dubey and Ahmedabad-based Reliance’s Industries Corporate Affairs Chief Parimal
Nathwani. Karnataka’s mining magnate Anil Lad is member of the Standing
Committee on Science and Technology, Environment and Forests.
Indeed, the Standing Committees on Finance, Commerce and
Industry, Public Accounts Committee and Public Undertakings Committee are
highly sought after. Primarily because these committees enable them to work
directly with the Minister or Ministry, summon officers generating a lot of
clout and being in an advantageous position to influence decisions.
Worse, the trend of surrogate MPs in the Council of States
has become more pronounced thanks to the Office of Profit Bill. The Bill bars a
MP from occupying any Government positions but does not restrict him from
holding a position in a corporate. Plainly there is a need to plug this lacuna
and include the private sector as well in the Office of Profit Bill.
Think: A majority of Rajya Sabha MPs state they have no paid
work yet 58% are crorepatis worth
over Rs1 crore, how? Thirty three MPs have declared shareholding of controlling
nature including King of Bad Debts Vijay Mallya Rs 39.45 crores, 28 remunerative
directorship of companies, 28 others regular remunerated activity,
7 enjoy paid consultancy and 43 MPs are professionally engaged, senior lawyer
Abhishek Singhvi Rs 50 crores!
Big deal, if this smacks of conflict of interest.
Pertinently, to put a lid on this in 1999 the Rajya Sabha’s Ethics Committee recommended
a Register of Interest but this was enforced only in May 2005. Under Rule 293 of the Rules of Procedure and
Conduct of Business Rajya Sabha MPs have to declare their financial and
business interest in the Register of Interest, a critical document to ascertain
conflict of interest.
According to the rules, MPs are expected to submit their
financial interests and professional consultancies within 90 days of taking
oath. Additionally, it is mandatory for MPs with interests to declare them
before speaking on the floor of the House alas, it has never been
followed.
Importantly, although rules specifically allow this information
to be made public, this is the first time. Ethically speaking, an MP who has
interests in a particular sector should not ask a question or be part of a
discussion, either in the House or Committee, but this too has been trashed in
the Parliamentary dustbin.
Unfortunately, the Rajya Sabha is not what it was intended
to be. Recall, our Constitution-makers wanted the House to consist of persons
of experience and eminence than those in the Lok Sabha. They therefore, opted
for three things. One, indirect elections from the State legislatures. Two,
minimum age of 30 years as against 25 for the Lok Sabha. Three, President to
nominate 12 persons “having special knowledge or practical experience in
literatures, science, art and social service.”
The original concept was spelt out by Sir Gopalaswamy
Ayangar, the second chamber, he said, was intended to “give an opportunity to
seasoned people, who may not be in the thickest of political fray, but who
might be willing to participate in the debate with an amount of learning and
importance which we do not ordinarily associate with the House of the People”.
What he advocated was implemented by Nehru and Maulana Azad,
both in letter and in spirit. Politicians defeated at the polls were firmly
kept out and efforts made to bring in “seasoned” persons.
Alas, today, the quality of MPs and complexion of the House
has undergone a sea change --- for the worse. Personal loyalty to the leader,
monetary considerations and political connections has largely got precedence
over competence and experience. Whereby, the House is functioning more as a
parallel (and competing) political chamber to the Lok Sabha.
Clearly, it is high time that our Right Honourables realize people
placed in positions of judgment or power must take extra steps to insure that
their private interests do not compete with their professional duties leading
to a conflict of interest. Whereby, a company in which a MP has financial
interest benefit financially from his position of power.
Moreover, those with a conflict of interest are expected to
rescue themselves from (i.e., abstain from) decisions where such a conflict
exists. The imperative for recusal varies depending upon the circumstance and
profession, either as common sense ethics, codified ethics, or by statute.
The best way to handle conflicts of interests is to avoid
them entirely. For example, an elected MP might sell all corporate stocks that he
owns before taking office, and resign from all corporate boards. Or he moves
his corporate stocks to a special “blind” trust, which would be authorized to
buy and sell without disclosure to him. Since the MP would not know the
companies the trust has invested in there would be no temptation to act to his advantage.
Alongside, our netagan
need to cry a halt to crony capitalism wherein political cronyism spills
over into the business world; self-serving friendships and family ties between
businessmen and the Government influence the economy and society to the extent
that it corrupts public-serving economic and political ideals.
In fact, when the Standing Committees are constituted, care
should be taken to exclude MPs who have a conflict of interest. It is time our
MPs set their House in order. They need to heed former British Prime Minister
Margaret Thatcher warning in her autobiography “the Downing Street Years”. Said
she: “If individuals behave irresponsibly, it is impossible for them to
establish a responsible society. Without a responsible society, there cannot be
a responsible State”.
As Parliament’s winter session begins, the coming months
will decide whether the Rajya Sabha will make Indian politics more messy and
unworkable! ---- INFA
(Copyright India News & Features
Alliance)
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