Get Even More Visitors To Your Blog, Upgrade To A Business Listing >>

Why government’s new tool to bring more transparency to political funding will just increase opacity instead

By Tamanna Inamdar

Tamanna Inamdar is the Senior Editor/Lead Anchor, Bloomberg Quint.

The government has pitched Electoral Bonds as a transparent tool for Political funding, but there is growing apprehension that the bonds will instead bring in more opacity.

“As citizens, we need to know who is contributing to whom,” Congress Leader and Member of Parliament in the Rajya Sabha, Rajeev Gowda told BloombergQuint. Knowing who is making the donations “is the only way you can understand who is influencing policy,” he said. His Party, though, has not made any real protests over the bonds apart from a letter written by Congress treasurer Motilal Vohra.

The government today finalized the terms of issuance of electoral bonds as interest-free banking instruments that can be encashed by an eligible political party through a designated bank account, Finance Minister Arun Jaitley said in the Lok Sabha today. The idea was mooted by the Narendra Modi-led administration in Budget 2017-18.

“It was a money bill should have been challenged in Parliament,” according to Jagdeep Chhokar, a founding member of the Association of Democratic Reforms, a non-governmental organization that works in the area of electoral and political reforms. “All political parties seem to be in it together because the hope is they will gain,” said Chhokar who has been tracking Indian politics for more than two decades.

The Companies Act, the Representation of People Act and the RBI Act has been amended to just facilitate hoodwinking of people in a large way.

Jagdeep Chhokar, Founder, Association of Democratic Reforms 

(Source: Bloomberg)
Image Credits: Bloomberg (As provided by author)

The other big concern among opposition parties is that the government can access information on who is buying these bonds. “This fails the fairness test because this information is with somebody,” Gowda said.

The banker knows, the RBI knows , the IT department knows. This information is accessible surely to the government of the day.

Rajeev Gowda, Rajya Sabha MP and Congress Leader

Chhokar agrees that this is yet another “big danger”. “There is an apprehension that as soon as a corporate buy an electoral bond; the party in power will be alerted”.

But Sheshadri Chari of the Bharatiya Janata Party finds these apprehensions misplaced. “Tomorrow it could be the Congress in power and the BJP can raise the same issue,” said the senior BJP leader. He urged parties and citizens to have “faith in the system” and said the anonymity that electoral bonds can provide a political donor “is a big advantage”.

The political party doesn’t know who the donor is so it is protecting the donor also. In case the party to whom the donation has been made doesn’t win, the element of vendetta does not appear.

Sheshadri Chari, National Executive Member, BJP 

The article was originally published on Bloomberg Quint.

Featured Image: Flickr

This post first appeared on The Indian Economist | For The Curious Mind, please read the originial post: here

Share the post

Why government’s new tool to bring more transparency to political funding will just increase opacity instead


Subscribe to The Indian Economist | For The Curious Mind

Get updates delivered right to your inbox!

Thank you for your subscription