Political Diary

New Delhi, 15 April 2020

COVID19 Silver Lining

GOVT HALTS MPLADS LOOT

By Poonam I Kaushish

As the lockdown continues, the corona virus infested season has a silver lining. Wherein Prime Minister Modi turned the maxim: Government money is nobody’s money, on its head by underscoring all to tighten their belt. Hardest hit were our Right Honourables who stared bleakly at a 30% cut in salaries for a year and the discontinuation of their infamous MPLADS (MP Local Area Development Scheme).  Surely, life for our Oliver syndrome afflicted Jan Sevaks will never be the same again.

Predictably, the Opposition cried foul and lamented the lack of funds, ‘how will we look after our constituencies they wailed.’ But their pleas fell on deaf ears. Kudos to the Government for biting the bullet! Would usher in a new bahaar in governance?

In the last 27 years since its inception in 1993, the MPLADS and MLALAD are synonymous with an open licence to loot of the aam aadmi’s hard earned money. So deep is the malaise that India’s dalit messiah Mayawati brazenly directed her MPs in 2003 to part with a part of the “commissions” they made from their MPLADS for Party coffers. She said, “Arre bhai sub miljul kar khao”.  Adding, that even the most honest MP makes Rs one crore annually by sitting at home. 

Even a ‘sting’ recently whereby some MPs were caught seeking bribes for doling out contracts under the MPLADS made not an iota of difference.  In a tell-all an MP 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 5 crore I receive annually on items which are important to showcase I am an MP.” Sic.

Most scandalously, data analysis of the Ministry of Statistics on MPLADS utilisation show that MPs elected in 2014 unspent money has risen by 214.63% (Rs 551.25 crores) between the 15th and 16th Lok Sabha and have not utilised their funds as effectively as MPs who were elected in 2004 and 2009.When compared with the 14th Lok Sabha, this rise is even greater i.e. 885.47%.

In the 16th Lok Sabha, this amount further rose to Rs 1,734.42 crores. This exponential rise in the unspent amount is despite the fact that funds released by the Government dipped from Rs 14,023.35 crores in the 14th Lok Sabha to Rs 11,232.50 crores in the 16th Lok Sabha. Bluntly, even though the funds available to the MPs saw a marginal decrease the money left unspent grew exponentially.

When it comes to a State-wise comparison of utilisation of MPLADS only four of 37 States and Union territories fully utilised their funds. With 81.63% utilisation, Assam is the worst performing, followed by Rajasthan 82.12%, Lakshadweep 82.2% and Tripura 82.39%. On the other hand, MPs of Delhi had the best utilisation 115.13%, Chandigarh, Telangana, Puducherry and Sikkim all of which achieved more than 100%  use of their funds.

Pertinently, Modi lead by example by spending  97.33% funds. The unutilised amount in his Lok Sabha constituency Varanasi is Rs 2.27 crores. Congress’s Rahul Gandhi 80.52% and Samajwadi founder Mulayam Singh 88.54% funds.

More.  Various CAG reports have pointed out that these funds meant for public good are siphoned off to greedy private pockets. Utilisation of the fund ranged from 37% to 52% during 2009-2014. In 23 States works under the scheme had not been inspected, 90% of district magistrates did not maintain an assets or works register.

In 6 States, 12 districts showed advance released as ‘utilised’ in ‘utilisation certificate’, thus inflating expenditure figure which peaked during elections. In a sample audit of 106 constituencies, it was found that of a total expenditure of Rs 265 crores reported by the collectors, Rs 82 crores, (31%) was not incurred at all.

The modus operandi is simple. An MP/MLA 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 2.5 crore of Rs 5 crore and an honest duo a minimum of Rs 1 crore. Asserted one, it is a "kind of financial rehabilitation package for the political cadre." For their “protection”, or for other “services”.

Indeed, if you think this is damning, think again. 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.

Sadly, there is no agency which can stop public funds from being wasted. Notwithstanding, expert views expressed by various committees. In 2002, the National Commission to Review the Working of Constitution sought “immediate discontinuance of the MPLAD Scheme”, saying it was “inconsistent with the spirit of the Constitution in many ways”. In 2007 the Second Administrative Reforms Commission said “schemes such as MPLADS and MLALADS should be abolished”.

Former Chief Justice of India Justice. Venkataramiah, called it an “assault on the Constitution”. Said he, “The scheme not only interferes with the federal scheme but also with the healthy Constitutional principle of separation of powers. There is no provision in the Constitution, conferring power on individual MPs for spending public money or giving directions to any officer, particularly an officer belonging to a State public service, on any matter.

In fact, India is the only country where legislators have the powers to dispense money and favours. In the US, the State imposes penalties for Government finance officers who mismanage public funds. Not only are they removed but barred from holding public office for four years and thereafter until restitution is paid. “When somebody’s got the cheque-book with taxpayer money in it, they’re armed and dangerous and it’s important that people have the way to correct the situation ... before another election comes around”, said a Senator.

Sadly, our leaders act like modern-day feudal maharajas. Whereby they expect the aam janata to prostrate before them. Thus, in this leech infested environment of the uundata takes it all, our carpet baggars refuse to let up. Time for citizens to stop the loot.

What next? Modi has shown the way, even if it’s thanks to corona. It is time to have a serious rethink on continuing the MPLADS. 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. It is time to apply the brakes. Cry a halt to the open licence to loot and scoot! ---- INFA

(Copyright India News & Feature Alliance)

New Delhi,

11 April 2020