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Foreign Donations: BJP, CONG CAUGHT RED HANDED, By Poonam I Kaushish, 29 March, 2014 Print E-mail

Political Diary

New Delhi, 29 March 2014

Foreign Donations

BJP, CONG CAUGHT RED HANDED

By Poonam I Kaushish

 

Money makes the clogged, polluted and corrupt electoral mare go around, and how! In the on-going Great Indian Political Circus small netas, two-timing jan sevak, big leaders along-with their respective Parties are busy ‘funding’ their vacuous promises. After all, what better time to hit the jackpot!

But this might be short-lived. In a landmark judgment the Delhi High Court last week ordered the Election Commission (EC) and the Home Ministry to look into the accounts of the Congress and BJP as both had flouted the norms of the Foreign Contribution (Regulation) Act (FCR) by accepting donations from UK-based Vedanta Resources and its subsidiary companies in India. The company had donated over Rs. 10.29 crores to the Congress and Rs 19.5 crores to the BJP between 20003-12. Topped by another Rs 28 crore over three years.

Notably, Section 29(B) of the RPA debars Parties from receiving contributions from a foreign source defined under clause (e) of Section 2 and 4 of the Foreign Contributions Regulation Act, 1976 which states: “Ensure that the foreign contribution and foreign hospitality is not utilized to affect or influence electoral politics, public servants, judges....”

 

Arguably why should anyone put his money on a politician or Party? Are the donations altruistic? Are the according to a preference for Parties and their ideologies? Certainly not, but purely a business proposition, a simple quid pro quo.

 

The person helps a Party with funds and, in return, gets his job done. It is not for nothing that businessmen are known as king-makers and the power behind the throne. Specially, a handful of top industrial houses which boast about their clout in the corridors of power – political insurance. And how does one explain the phenomenon of the donation cup over flowing whenever a Party is in power, at the Centre or in States?

 

Tragically, most politicians and candidates do not regard elections as merely a process that yields public office or governmental power. They use elections to amass wealth not only for their Parties and themselves but for future elections as well. Like politics, elections have become a business --- like businessmen politicians in the election business balk at the idea of controls and regulations. That is why no Party, however vocal about the matter while in opposition, has made a sincere attempt at standing the flow of black money into the electoral arena.

 

Interestingly, a cursory glance of affidavits filed with the Election Commission reveal the bizarre realities of politics. It showcases significant contributions from several business houses that have directly benefited from the party in power. Again, the Public and Political Awareness Trust of Vedanta paid of $121 million to the NDA Government and in lieu it took over public sector giant Bharat Aluminum Co Ltd, BALCO.

 

Perhaps taking a cue another steel magnate paid Rs 50 crores and rewarded with highway construction contracts.  Yet, one more industrialist paid Rs 50 lakhs to the Congress in 2003 and within months was inducted into the Party. However, in the 2004 Lok Sabha poll he was one of the highest donors to the BJP even though he contested on Congress ticket and won. Truly, playing both ends against the middle.

 

This is not all. For last couple of months, investigating agencies, including the Enforcement Directorate and Directorate of Revenue Intelligence are closely monitoring a sudden spike in inward remittance to Parties through sham foreign investments. In West Bengal foreign fund inflow has increased to around $1,788 million during 2013 as against $1,499 in 2012. Donations for 2003-04 show how the fortunes of the ruling party differ from the one out of power. While the Congress ‘officially’ received just Rs 2.81 crore, the BJP managed over Rs 11.69 crore. Money was paid through little-known trusts, or in some cases, directly by the business groups.

Most scandalously, presently Parties only report contributions above Rs 20,000 to the EC under law. No one knows where almost Rs 3675 crores came from. Think, between 2004-05 and 2011-12 a whopping total of Rs 4899 crores was the income of six national Parties. But less than a quarter of this money is accounted for.

Believe it or not, only 11.89 per cent of Congress’s total funding of Rs 774 crore and 22.76 per cent of BJP income in the 2009-10 and 2010-11 of Rs 426 crore came from donations above Rs 20,000, according to reports submitted to the EC. The BSP which got donations of Rs. 99 crore between 2009- 2011, stated that it received zero donations over Rs.20,000. Even the CPI (M) which claims to be morally on a higher plank than these parties claimed that just 1.29 percent of the money it made in donations in 2009-10 was in excess of Rs 20,000 each.

Clearly, underscoring the symbiotic and partly antagonistic relationship between industry and politics. Notwithstanding, over the years the Government has tried to bring in legislation to regulate Party funds -- distribution and spending of Party funds during non-elections and elections. Getting them to maintain regular accounts and make audited accounts available for inspection. It even held out threats of de-recognition if parties filed false and incorrect election returns. But nothing worked. Even as poll costs continue to increase.

 

In a milieu where are netagan have much to lose and the public everything to gain by a transparent funding system, unless one determines the sources that should be legally tapped for campaign expenses there is little hope of minimizing the evil influence of unaccounted money power and vested interests. Company donations will at best add up to a few drops in the electoral bucket. 

 

What is the way out? One, donations should be evenly spread out, not necessarily equally, but perhaps in some proportion to seats in Parliament. Two, State funding of elections. Three, the fund to be apportioned on the basis of votes secured by candidates in the election. Four, the amount be released to individual candidates, and not to political parties. Five, 50 per cent of the fund to be released as an advance before an election, on the basis of previous performance.

 

Undeniably, Parties will continue to stonewall all efforts to clean up the electoral system. Hence irrespective of whether a Party is in power, donations must be made public as the aam janata has the right to know whether a Party’s stand on a policy is influenced by the source of its funding. Towards that end, there must be compulsory social audit of political funding by the EC or by a group of auditors shortlisted by the CAG.

In sum, given that Parties function as private limited companies, each with its own secret war chests, the time has come for all Parties to be publicly transparent about their financing.  Else Messers Modi, Rahul and Kejriwal’s tall talk of eradicating corruption is just empty talk, which will vanish into thin air once the ballot boxes are sealed! With our leaders laughing all the way to the bank. What gives?  ---- INFA

(Copyright, India News and Feature Alliance)

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