Let's clean political cesspool

Let's clean political cesspool

When parties take money in cash from `unidentified' donors, they work for tax evaders The recent demoneti sation decision may have its supporters and detractors, but no politi cal leader or political party can convincingly speak about the need to eliminate corruption without resolving to pass the comprehensive electoral reforms bill that has been pending before Parliament for the last two decades. This is so because the pernicious nexus between politicians and political parties on the one hand, and black money on the other, is the principal cause of all corruption in India. If those who are supposed to make laws against corruption are themselves the products of a corrupt system, how can the rest of society be clean? When parties take money in cash from `unidentified' donors, they work for tax evaders. When candidates illegally spend many times the prescribed limit on elections, their first priority is to milk the state to recoup their `investments'. India is among the lowest scoring countries on political finance regulation according to the Global Integrity Report. India scored zero out of hundred on implementation and disclosure of political party and candidate financing.It also scored a zero on the effectiveness of its party financing regulations. By contrast, if there is an international reward for lip service on the need to bring greater financial transparency to transactions of political parties, India would probably be at number one! Starting with the Goswami Committee on Electoral Reforms in 1990, the Vohra Committee in 1993, the Indrajit Gupta Committee in 1998, Law Commission Report on the Reform of Electoral Law 1999, Election Commission of India Report on Proposed Electoral Reforms 2004 and the 2nd Administrative Reforms Commission 2008, scores of committees have spewed out voluminous reports but all of them have largely remained confined to proposals, ideas and intentions. The truth quite bluntly is that most political parties and politicians have no reason to change the current system because they are the biggest beneficiaries of it. The time has thus come to turn the spotlight on politicians, who speak about eliminating corruption the most. Several immediate steps can be taken. Firstly, the current practice which allows parties not to identify donors contributing less than Rs 20,000 must be scrapped, as recommended by the Election Commission (EC).This is the principal channel for parties to collect vast amounts of undeclared funds. The EC has recommended that existing limits for cash donations should be lowered to Rs 2,000, but, frankly, there is no reason why every paisa given to a political party cannot be accounted for and transacted through auditable and transparent financial channels. Secondly, all payments made by political parties must be made digitally or through banking channels. This has been recommended by the Core Committee on Electoral Reforms sponsored by the EC, and the ministry of law and justice. The EC's order that all candidates must open separate bank accounts for cheque payments is the right step, but given the current digital emphasis, there is no reason why all payments, and not only those above Rs 20,000, should not be made by cheque or digitally. Thirdly, all political parties must compulsorily make public their audited accounts every year. Currently, candidates are required to disclose their assets and liabilities but not political parties. As far back as 2004 the EC recommen ded that, “Political parties should be required to publish their accounts annually for information and scrutiny of the general public for which purpose the maintenance of such accounts and their auditing to ensure their accuracy is a prerequisite. The audit may be done by any firm approved by the Comptroller and Auditor General (CAG). The audited accounts must be made public.” Further, once made public, the audited accounts should be brought under the RTI Act. Fourthly, the CEC and the CAG must be given powers to scrutinise and monitor a party's financial transactions. Currently, political parties merely obtain a certificate from the EC that they have submitted their annual audited statements of accounts. Fifthly, the EC should have powers to take action against parties that are found culpable of illicit financial transactions, including deregistering those that are repeat offenders. Similar powers should be available against politicians who verifiably flout regulations. Any judicial appeal from an action by the EC should be with a fast track court or special election tribunal. This too has been specifically recommended by the EC. Sixthly, all candidates for elections must show, as the EC has now directed, the source of their incomes, and not merely their assets and liabilities under Form 26 of the Conduct of Election Rules 1961. It is common knowledge that Form 26 declarations hide more than they reveal and are in fact a tribute to the ingenuity of chartered accountants. Effect should also be given to the EC's recommendation that Section 125 (A) of the Representation of the People Act be amended to provide for more stringent punishment of imprisonment for two years to those who conceal or provide wrong information. There is a Hindi saying: Diya tale andhera: darkness below the lamp. In the case of corruption and black money, the real darkness is below the glow of political rhetoric. It is time that our politicians stop pointing the finger at others and look at the cesspool in their own backyards.