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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