http://www.observerbd.com/2014/11/22/56106.

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Disclosure of income and expenditure of political

parties
M S Siddiqui
Publish Date : 2014-11-22,
Bangladesh is one of the most corrupt countries as per corruption
index. The political parties are no exception and their funding
mechanisms are not accountable and transparent. Political parties
in some countries like Sweden, Turkey, the USA, the UK,
Belgium, Canada, Australia, New Zealand, and South Africa
voluntarily disclose their records to their people. Parties in some
of these countries depend solely on state funding while in most
other countries they receive both public and private contributions
for running the party and election campaign etc.
The Joint Agreement adopted by the Swedish Parliament requires
all political parties to publicize contributions from legal persons
mentioning names and the amounts received. Contributions
received from individuals are disclosed as a total amount and the
total number of contributors only. Any person may inspect the
audited statement of accounts and expenditure of such political
parties at their offices.
The Turkish political parties voluntarily publish a summary of
their financial statements on their websites although there is no
statutory requirement to do so.
Austrian Political Parties Act requires all registered political
parties to publish their annual statement of accounts in the Official
Gazette. Parties receive both public and unlimited private
funding.
In Italy political parties are required to publish their financial
statements along with attached notes, and a summary of their operations in two newspapers every year. One of these newspapers
must have national circulation. Political parties receive public and private funding subject to limitations.
Kenyan political parties receive state and private funding subject to limitations and their Political Parties Act, 2011 requires all
political parties to publish their sources of funding including amounts received, income and expenditure and assets and liabilities
every year in two newspapers having nation-wide circulation. Failure to publish may invite a fine of up to one million shillings
and or imprisonment for a period not less than two years.
The Political Fund Control Act, 1948 requires Japanese political parties to submit statement of accounts to the Ministry of
General Affairs and Local Elections Management Council (depending on whether elections are to Parliament or local bodies).
These organizations permit free inspection of these records for any person. The information is also made publicized through the
Official Gazette and the websites of these organizations.
Our neighbouring Bhutan also enacted Public Election Fund Act, 2008 which requires political parties to make available details
of their bank accounts and campaign finance records for public inspection in the manner and at a place specified by the Election
Commission. Nepalese Political Party Act, 2002 requires political parties to publish their annual reports and statement of
accounts and expenditure. The identity of donors contributing more than NRs 25,000 must be disclosed. The Election
Commission may impose a penalty of NRs 100 on a political party that fails to publish this information. Political parties are also
covered by the Right to Information Act.

In Bangladesh the law regarding this matter is 'The Representation of Peoples Order-1972' which has been amended time to time
and has finally taken shape as 'The Representative Act-2009'. According to the Law, no registered political party shall receive
any gift, donation, grant or money from any other country, or non-government organization assisted by foreign aid or from any
person who is not a Bangladeshi by birth or any organization established or maintained by such person (90F-2 of People's
Representative Order). The Representation of the People (Amendment) Ordinance, 2001 has allowed the private and corporate
donation to any political party. One can donate up to Tk1, 000 without keeping any records, but to donate more than that the
donor must leave his/her name and address and the donation must be made by cheque. Under the latest amendment an individual
is allowed to donate up to Tk 5 lakh while an organization can donate Tk10 lakh at most.
According to the RPO-2008, the registered political parties must keep their accounts books as per prescribed legal format which
must be audited by a certified auditor. The parties have to submit their annual income and expenditure statements to the EC
within 31 July after the end of the previous fiscal year. Any public access to the information on regular party financing is not
ensured in the law.
The amount of electoral expenses by both candidates and parties has been limited by the law. The upper limit of electoral
expenditure by candidates depends on the number of voters (Tk 5 per voter), or a maximum Tk 15 lakh in a constituency. In case
of parties the highest permissible amount to be spent by a party depends on the number of its candidates, or a maximum Tk 15
lakh per candidate. Both the candidates and the parties are bound to submit electoral expenditure reports to the EC within a
stipulated time. However, individual candidates are not bound to disclose information to the common citizen. Media and donors
are also not legally bound to disclose such information.
Indian Information Commission has given a ruling that the political parties are public authorities as they are substantially funded
indirectly by the Union Government and perform public functions. In its order the Commission said that any written records can
now be sought from any entity in a political party. Parties will have to appoint, within six weeks, officials to file RTI replies.
They have also been ordered to share mandatory details under a voluntary disclosure section of the Act on their websites. Most
parties are vehemently opposed to such a move denying the claim by the Commission that political parties are 'public authorities'
and 'government funded'. But the bench said that income tax exemptions granted to the parties and free air time on All India
Radio and Doordarshan at the time of elections, also amount to indirect financing from the government. It has argued, "Political
parties affect the lives of the citizens, directly or indirectly in every conceivable way and are continuously engaged in performing
public duty. It is, therefore, important that they become accountable to public".
Political parties in Bangladesh get free publicity in electronic media and Members of the Parliament (MPs) get duty free import
of cars. They are also entitled to subsidized accommodation in government circuit houses and other VIP privileges. The political
parties must come under the RTI Act and their party accounts should be available to all public ensuring transparency of their
income and expenditures.
Sushashoner Jonno Nagorik (SUJAN) General Secretary Dr Badiul Alam Majumder filed a case to the Information Commission
(IC) for a direction to Election commission (EC) for disclosure of books of accounts of registered political parties. The IC
directed the EC to write to political parties for their 'opinion' regarding disclosure of their accounts to public and also 'requested'
the EC to publish the audited accounts of political parties. According to media reports, the quasi judicial commission has not
directed the EC to take necessary actions yet.
Bangladesh needs decision whether parties should disclose their financial affairs under the RTI Act or the Representative of
Peoples Act-2009 requires further amendment to resolve the issue once for all.

Author is a legal economist. He can be reached at shah@banglachemical.com