Political Diary
New
Delhi, 2 April 2019
Election
Funding
SSHH….
ABOUT POLL SLUSH!
By
Poonam I Kaushish
Money makes the clogged, polluted and corrupt
political mare go around, and how! In the on-going Great Indian Dance of
Democracy Parties have opened their secret war chests and are busy ‘funding’
their vacuous promises. After all, what better time to hit the jackpot!
Think. In 2017-18, the income of six national
Parties stood at Rs 1293.05 crores, but nearly Rs 700 crores of this came from
unknown sources as the Election Commission doesn’t require Parties to declare the
source of earning below Rs 20,000. Scandalously, since 2004-05 national Parties
have collected Rs 9000 crores from ‘nameless’ entities.
Unsurprisingly, the ruling BJP got a total of
Rs 1,027.3 crores of which Rs 553.4 crores came from mysterious sources.
Naturally, Opposition Parties fared poorly. The Congress netted Rs 199.2 crores
of which 119.9 crores were unknown, CPM ‘earned’ Rs 104.9 crores, Mayawati’s
BSP Rs 51.7 crores, Pawar’s NCP Rs 8.2
crores, Mamata’s Trinimool Rs 5.2 crores and CPI Rs 1.6 crores.
Undeniably, donations are not altruistic. It
is a business proposition and political insurance, a quid pro quo as a Party is
not a bank or mutual fund which offers interest and good returns yet
businessmen put their money on it. Also it has nothing to do with preference
for Parties or their ideologies but all about power.
Any wonder the donation cup overflows whenever
a Party is in power at the Centre or States. The modus operandi is simple. A
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, specially, a handful of
top industrial houses which boast about their clout in the corridors of power.
Donations for 2011 and 2004-5 showed how the
fortunes of the ruling Party differed from the one out of power. While the then
ruling Congress garnered Rs 1,951 crores from unidentified sources, the BJP
received Rs 952.5 crores. In 2003-04, the ‘collection’ was opposite. While the
BJP managed over Rs 11.69 crores, the
Congress ‘officially’ received just Rs 2.81 crores.
A cursory glance of affidavits filed with the
EC over the years revealed the bizarre realities of politics. It showcased
significant contributions from several business houses that directly benefited
from the Party in power. A metal and mineral baron who had funded the BJP in
2000, became the proud owner of 51% of Bharat Aluminum Co Ltd (BALCO). By
paying $121 million sparking off protests that it was under-valuated.
A steel magnate paid Rs 50 crores and got highway
construction contracts. Another industrialist
paid Rs 50 lakhs to Congress in 2003 and was inducted into the Party. However,
in the 2004 Lok Sabha poll he was one of BJP’s highest donors even though he
contested on Congress ticket and won. Truly, playing both ends against the
middle.
Underscoring the symbiotic and partly
antagonistic relations between industry and politics various Governments have
tried bringing legislation to regulate Party funds, their distribution and
spending during polls by getting them to maintain regular accounts and make these
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.
Parties spend huge amounts for elections but
the economics of running a poll campaign remain a hush-hush affair. Primarily,
because elections are used to amass wealth for Parties, themselves and future polls.
Like politics, polls have become a business --- like businessmen, politicians
too balk at the idea of controls and regulations. That is why no Party, however
vocal about the matter in opposition, has made an attempt at stanching the flow
of black money into the electoral arena.
Sadly, there is brazen hypocrisy and humbug
in what transpires under framed rules. Today, a candidate spends over Rs 15
crores per election instead of Rs 70 lakhs allowed by the Law. Hypothetically,
the minimum amount needed by each Party for the 545 Lok Sabha seats would be Rs
8175 crores. Multiplied by 10 candidates per constituency, it adds up to a
mind-boggling Rs 81,750 crores. Are we expected to believe that this amount is collected
by cheques?
To end this scourge the Government has mooted
electoral bonds to pay for elections and help cleanse political funding. This allows
anonymous donations through bonds which can be bought at a bank in
denominations ranging from Rs 1,000 to Rs 1 crore and given to a Party, which
can exchange them for cash. But the donor is faceless.
However, the EC opposes this as it would have
a “serious impact” and reduce
transparency in political funding by legalizing large unknown contributions
which can potentially lead to businesses and foreign companies gaining
influence over elections. Also, it would
be impossible to determine whether donations to Parties came from companies
breaking the law, State-owned public sector units or foreign sources.
But, the Government’s explanation that bonds
have to be bought at the State Bank and would be
“white” does not hold good as anonymity makes it impossible to keep a check on
who is funding a Party. The Government for reasons best known to it has taken
away checks that ensured only profitable companies which existed over three
years could donate. This prevented shell companies being set up to help
“round-trip” money or whitewash it by giving it to Parties, while also bribing
them in the process.
Questionably, however does it fulfil its
objectives --- stop generation and use of black money, besides getting Parties
to submit their audited accounts regularly? No. Will it stop the use of money
power which has become the bane of India’s electoral polities? No way. Will it
decrease corruption? Not at all. Bring about the much-hyped and promised
transparency? Are you kidding?
More. The proposal lacks vision in respect of
who would buy bonds and whether disclosure of the source of money was
obligatory on those who buy them. Asserted a former Election Commissioner, “Bonds
and donations are welcome but they could be an easy way to launder black money
if disclosure of the source is not made mandatory. Transparency on political
funding, as in the West, is a must before exemption is allowed.”
The way out? In a milieu where netas have much to lose and public
everything to gain by a transparent funding system, unless one determines the
sources which should be legally tapped for Party expenses there is little hope
of minimizing the evil influence of vested interests. Two, donations should be evenly spread out, not
necessarily equally, but perhaps in some proportion to seats in Parliament.
Three, State funding of elections and funds be apportioned on vote basis
secured by candidates. Four, amount be released to candidates, not Parties.
Five, 50% given as advance, pre-election on past performance basis.
In sum, we still have a long way to go before
we can make elections free and fair as Parties will continue to stonewall all
efforts to come clean on funding. Thus, irrespective of whether a Party is in
power, donations must be made public as people have the right to know whether a
Party’s stand on a policy is influenced by the source of its funding. Time to
end bhrashtachaar. Else our netagan’s tall talk of eradicating corruption will
remain empty blabber! ------ INFA
(Copyright, India
News & Feature Alliance)
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