Funds for polls financing

In the process of reasoning she said, infrastructure financing should be made harder for the corrupt politicians and the parties that support them, so that such projects were not used as 'cash cow' for the party or the candidates. She also said, 'Unfortunately, once political parties become dependent on funding from routine corruption in the sector, the systemic corruption that pervades the system is self-reinforcing.'

Not Wallich alone, the US Assistant Secretary of State for South and Central Asia Richard Boucher has also said, corruption and factional feud are challenges to Bangladesh's general elections in 2007. He made this remark before the House Committee on International Relations in Washington on May 17, while reflecting his overall observations on the country.

According to the electoral laws, no political party is allowed to spend more than a fixed amount of money for election campaign including the expenses for its candidates. There are three different ceilings depending on the number of candidates that a party nominates. The highest ceiling is Tk. 1.5 crore where the number of candidates is more than 200, it is Tk. 1.00 crore where the number of candidates is more than 100 and if the number of candidates is not more than 100, the limit is Tk 75 lakh.

But all the major political parties, in particular the BNP and the AL, spend crores of taka in election defying this ineffectual electoral law. The result is a preponderance of black money and the dedicated political leaders with no ill gotten money in their possession are at such clear disadvantage that clean politics may no longer be an option. Though there is a mandatory regulation, as per section 44 CCC (1) of the Representation of the People's Order 1972, none of the 55 political parties that contested in the 2001 parliamentary election, has submitted the return of their polls expenses to the Election Commission.

There are tight legal limits on the amount of money a candidate can spend during the election campaign in India. Since December 1997, in most of the Lok Sabha constituencies the limit was Rs 15,00,000, although in some states the limit is Rs 6,00,000 (for Vidhan Sabha elections the highest limit is Rs 6,00,000 and the lowest Rs 3,00,000). Recent amendment in October 2003 has increased these limits. For Lok Sabha seats in bigger states, it is now Rs 25, 00,000. In other states and Union Territories, it varies from Rs 10, 00,000 to Rs 25, 00,000. Similarly, for Assembly seats, in bigger states, it is now Rs 10, 00,000, while in other states and Union Territories; it varies from Rs 5, 00,000 to Rs 10, 00,000.

Though the supporters of a candidate can spend as much as they like to help out with a campaign, they have to get written permission of the candidate, and whilst parties are allowed to spend as much money on campaigns as they want, recent Supreme Court judgments have said that, unless a political party can specifically account for money spent during the campaign, it will consider any activities as being funded by the candidates and counting towards their election expenses. The accountability imposed on the candidates and parties has curtailed some of the more extravagant campaigning that was previously a part of Indian elections.

The political parties in Pakistan are required to submit annual statements of their polls fund to the Election Commission in accordance with the Political Parties Order (PPO) 2002. Those for the year 2003-04 show that Muttahida Qaumi Movement (MQM) made slightly more and spent slightly less than Rs. 4 million. PML (Q) made Rs 3.25 million and spent Rs. 5.95 million presumably drawing upon the balance from the previous year. PML (N) made and spent a little less than two million. Jamaat-e-Islami received Rs. 2.95 million and spent Rs. 2.86 million.

The sources of funds in most cases are said to be membership fees and voluntary contribution from members and supporters. It is more than likely that, beyond the Islamic parties, the bulk of a party's expenses are met out of the purse of its top leaders.

Those who organise political parties in Pakistan would appear to be independently very rich. Benazir Bhutto and Makhdoom Amin Fahim are landlords. Chowdhury Shujaat Hussain is a landlord and an industrialist.

In Britain, the Political Parties Election and Referendums Act-2000 was enacted to regulate funds of the political parties for polls financing. According to the Act, a registered political party may raise funds for polls financing through collecting membership fees and donations from their supporters.

The Labour party in Britain used to get most of its funds from the workers' unions. But their contribution like their membership has been declining since 1980s. Membership of the parties has also declined with the gradual erosion of their ideological differences. The Labour party borrowed 14 million pounds and Tories 21 million with low interest from the rich supporters to finance their 2005 polls. The British prime minister Tony Blair and the Tory leader David Cameron met recently to discuss the option of public funding of political parties but could not reach an agreement.

The public funding of political parties in Italy was first introduced in 1974 and has gone through vicissitudes as a result of some subsequent acts. The latest legislation adopted in 1997, allows individuals to designate 0.4 percent of their income tax liability as a contribution to political parties. The proceeds go into a fund which is distributed among political parties, having at least one seat in the chamber of deputies of the Senate. Additional contributions by individuals and corporations within prescribed limits can be tax deductible.

Certainly there is no denying that polls financing is a major source of corruption in Bangladesh and it is the weight of black money that will make the big difference in the 2007 parliamentary election. The ruling coalition is reported to be making a mess of public funds in their firm belief of winning the voters by distributing largesse. The opposition parties are also found of choosing candidates capable of making a fat contribution to party funds, no matter money is black or white. Such money power is now vitiating the country's politics.

It is almost an axiomatic truth that politics in Bangladesh has become a profitable business. When the election investment is enormous, there is sure to be a strong corresponding compulsion to recover the huge investment and there lies the roots of all evil. The electoral laws need to be tightened as it has failed to thwart over financing in polls. The 'Nagorik Committee-2006' formed as part of the civil society initiative for clean candidate may play a vital role to safeguard against over financing in the polls which is a major source of corruption.

ANM Nurul Haque is a banker.