Fund-raising of political parties
In the absence of any law in Bangladesh regulating the fund-raising of the political parties in a transparent way, they are raising funds in a dubious way. Raising of funds for political parties continues to be a secret affair and the political parties are not required to submit to the Election Commission(EC) the audited annual statements of their income and expenses. So, there is lack of transparency in the whole issue.
Let us now look into the legal provisions existing in some countries regarding fund-raising of political parties.
For all latest news, follow The Daily Star's Google News channel. In the UK, the Political Parties, Elections and Referendums Act 2000 (PPERA) introduced a regulatory framework governing the registration and finances of political parties. The salient points relating to financing of a registered political party are as follows:
--A registered political party may receive donation which will include: (a) any gift to the party of money or other property; (b) any sponsorship provided in relation to the party; (c) any subscription or other fee paid for affiliation to, or membership of, the party; (d) any money spent in paying any expenses incurred directly or indirectly by the party; (e) any money lent to the party otherwise than on commercial considerations; and (f) the provision otherwise than on commercial terms of any property, services or facilities for the use or benefit of the party.
--A registered political party shall receive donation from permissible donors that include (a) an individual registered in an electoral register; (b) a company registered under the Companies Act of 1985 within the UK or another member state that carries on business in the UK; (c) a registered party; (d) a trade union entered in the list kept under the Trade Union and Labour Relations (Consolidation) Act, 1992; (e) a building society (within the meaning of the Building Societies Act, 1986); (f) a limited liability partnership registered under the Limited Liability Partnership Act, 2000; (g) a friendly society registered under the Friendly Societies Act, 1974.
Under the Political Parties Order (PPO) 2002 of Pakistan, the sources of a political party's funds include: (a) membership fee and voluntary contribution made by the members of the party towards the party's funds; (b) contribution made by the supporters of the party.
Under the law, receipt of any contribution from any foreign government, multi-national or domestically incorporated public or private company, firm, trade or professional association stands prohibited. Political parties may accept donations and contributions only from individuals.
Any donation or contribution which is prohibited under the PPO shall be confiscated in favour of the state.
The Political Parties Rules 2002, which have been made to carry out the purposes of the PPO 2002 provide that every political party shall maintain its accounts indicating its income and expenditure, sources of funds, assets and liabilities and shall, within sixty days from the close of each financial year (July-June), submit to the Election Commission a consolidated statement of accounts of the party audited by a chartered accountant, accompanied by a certificate, duly signed by the party leader to the effect that no funds from any source prohibited under the PPO 2000 were received by the party and that the statement contains an accurate financial position of the party.
Traditionally, political parties in India financed themselves through private donations. Company contributions to political parties were legal, subject to certain restrictions, and had to be declared in the company's accounts. There were limits on election expenditure since the Representation of the People Act (RPA) 1951. Company donations to political parties were banned with effect from 1969.
The political parties are one of the three main actors in the high corruption drama of Bangladesh, the other two being the public offices and private corporate sector. Public Administration Reforms Commission in its report (June, 2000) had observed: "Unless the funding process of political parties is transparent and they are required to disclose the sources and use of funds, the election process degenerates into auctioning of nominations. Governance also degenerates into corrupt patronage." So, time has come for framing laws to govern the fund-raising of the political parties and take account of their income and expenses annually. Prior to the framing of laws, the issue may be discussed thoroughly by the politicians, jurists, civil society leaders and the media.