The ubiquitous party fund

By K. K. Katyal

JUST UTTER the two magic words ``party funds'' and get away with murder. This had been the case with our political elite for decades - they sought to cover, blatantly and shamelessly, their sins in collecting huge sums by invoking the name of their party. In most cases, it was ill-gotten money that was passed on to the party functionaries, including those who were not authorised, there being no check on how the recipient made use of it. No receipts, no accountability, no record of whether and, if so, how much of it found its way into the party coffers. The politicians concerned were obliged to the donor and, in case of their assuming office, did not hesitate in bending rules to serve his interests. The pernicious influence of money power was particularly evident in electoral politics - at the very start of the processes employed for choosing the rulers - and was reflected in the quality of administration provided. As had been often stated, ``the Ganga could not remain clean, if Gangotri is polluted''.

All this was disturbing but equally disconcerting was the failure of the system to counter these practices and to root out the malignity. And also the manner in which the people came to accept these trends and actions as an essential part of the functioning of democratic institutions. Their conscience had been blunted: it did not evoke a sense of revolt.

Had that not been the case, those caught in dubious roles by the Tehelka tapes would not have sought to use the escape route of ``party funds''. By linking their conduct with the party and its monetary needs, they counted on the people's understanding and tolerance. It was not the first time that this issue came to light though never before had the camera caught the president of a party accepting wads of currency notes and the head of another openly talking of party funds at the residence of the Minister holding the sensitive portfolio of defence with the ``representatives'' of an enterprise supplying arms. The defence of the political bosses was disgusting, indeed.

The issue of regulating collection of party funds did engage the attention, perfunctorily though, of the Government and politicians from time to time but was not pursued, obviously because of the compulsions of party politics. In the past, the leaders of the Jana Sangh, some of whom are in power now in a changed incarnation, the BJP, had taken the lead in calling for reform of the election process. It is one of the cruellest ironies, therefore, that top persons of this very party and that of its allies should have figured in dubious roles - caught red- handed as it were. As in many other cases so in the matter of party funds, a regulatory mechanism could not be devised because those required to take decisions had themselves been the guilty elements.

Though not caught by camera, there had been abominable instances in the past of politicians seeking shelter behind party funds when found in possession of large sums of money, the acquisition of which could not be explained. There was the case of a former Central Minister (of the Congress(I) Government), the search of whose residence yielded a fantastically large amount. His explanation: ``party funds''. In another case, two MPs deposited several lakhs of rupees in a small branch of a bank in New Delhi and, when asked to explain, said it was the money given to them by their grateful followers for the use of the party.

Initially, the amounts involved were modest. The techniques for collections were simple too. There was, for instance, the trick of political worthies possessing large unaccounted sums distributing the money to their trusted followers and confidants who, in turn, would offer garlands of currency notes to their beloved leaders at specially-organised meetings. The black money was, thus, converted into white in full public view. And the leaders were not required to pay income tax because it was meant for use by the party.

There used to be a lively debate in the past on the modalities of company donations by the corporate sector and business houses to political parties. What should be the percentage of the income that could be given? Whether the payment had to be by cheque or other means? Some time in the second half of the 1970s, the political parties stopped looking to domestic business houses. The money available from kickbacks and commissions in the deals of the Government with enterprises abroad put vast sums at the disposal of the ruling elite. Particularly lucrative were the procurement of equipment for the armed forces. Never mind if there had to be a compromise on the quality of the military hardware or the public exchequer was required to part with avoidably large sums. The arrangement had the merit of meeting party needs. The domestic business houses were dismayed because of their irrelevance.

With the passage of time, the permissiveness acquired newer proportions. It was, therefore, not difficult for the Tehelka correspondents, posing as arms dealers, to pierce the tight security cordon of sensitive areas and engage top politicians, army officers and bureaucrats in conversations over the mechanics of decision-taking for the procurement of arms and offer money - accepted by the politicians concerned as ``party fund''. Had some steps been taken in the past to stem the rot, the country could have been spared the plunder and the ugly spectacle of the type, witnessed last week.

Instead of initiating the process for the review of the working of the Constitution, the NDA Government should have concentrated on electoral reforms and on steps to streamline the functioning of political parties, in particular regulation of fund collection by them. The Constitution review commission does plan to address this issue. But the consultation paper it has circulated does not indicate any seriousness of purpose. It is clumsily-drafted and seeks to bury the inadequately-framed substantive points in a mass of verbosity.

The need for comprehensive legislation for regulating contributions to political parties is recognised and a case is made for legislation for 1) compulsory auditing of the accounts of the political parties,registered with the Election Commission by an independent authority (audited accounts to be published and made available for public inspection); 2) making accountable both donors and recipients of political funds; 3) permitting individual and corporate agencies to make contributions to political parties within a prescribed ceiling (which could be higher than the present limit of five per cent of the profit); and 4) encouraging corporate bodies to establish an electoral trust to finance political parties on an equitable basis at the time of elections.

The country's interest would have been served if the Constitution review commission had been asked to confine itself to such core issues instead of spreading itself thin - and mooting proposals for the Ayub Khan-type indirect election, which had deservedly invited severe reprimand from the President, Mr. K. R. Narayanan.

The permissiveness in regard to the finances of political parties led to bigger evils - the stranglehold of money power over the electoral process and democratic institutions. What else was the meaning of the sensational disclosures of the Vohra Committee - an official panel set up by the Government, with the then Home Secretary, Mr. N. N. Vohra, as its head? The committee's findings were not pursued and as such there was no attempt to deal with the situation arising from the ``nexus between criminals, mafias and anti-national elements, on the one hand, and bureaucrats, politicians and other sensitively located individuals, on the other''. The report mentioned the growth of criminal gangs with specific reference to the patronage of local level politicians, cutting across party lines, and the protection of Government functionaries: ``Some political leaders become the leaders of these gangs, armed senas and, over the years, get themselves elected to local bodies, State Assemblies and the national Parliament. Resultantly such elements have acquired considerable political clout, seriously jeopardising the smooth functioning of the administration and the safety of life and property of the common man.'' Then there was another disturbing dimension - the linkages between these organisations and foreign intelligence agencies and other elements.Will the present episode serve as a trigger for rooting out the ``party fund'' malaise? And will those found guilty be awarded exemplary punishment?

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