Local Area ‘Diversion’ funds
Source: The Free Press Journal
PVNarasimha Rao stumbled upon this idea of aRs 1cr dole per MP, to develop in them a vested interest in perpetuating the Lok Sabha’s continuance for the full term
With successive reports of the Comptroller and Auditor- General of India ( CAG) pointing fingers at the way a part of the funds allocated under the Member of Parliament Local Area Development ( MPLAD) scheme are siphoned off by some unscrupulous MPs into private pockets, many are thinking aloud why shouldn’t such a scheme be scrapped in the interests of some semblance of morality in public life.
The attacks over dishonesty in public life are bound to intensify at least until the relatively honest leaders of the catalyst for change, the Aam Aadmi Party, are not discredited by vested interests or by their own power obsession. It is a cold reality that in the atmosphere of corruption and misuse of office that prevails today across the country, even well- meaning schemes are subverted to serve private interests by some unprincipled recipients of public money. There is no denying that there are MPs who utilise the scheme to genuinely benefit thousands of people in their constituencies and create infrastructure that is put to genuine good use. But it is equally true that there are enough black sheep to make the MPLAD scheme, which was first rolled out in December 1993, look like a means for MPs to enrich themselves at the cost of the public exchequer.
When former Prime Minister Narasimha Rao conceived the scheme, he was shrewd enough to realise that if his minority government was to run its term of five full years, it needed something innovative to develop in the MPs a vested interest in perpetuating the Lok Sabha’s continuance for the full term. He then stumbled upon this idea for the central government to dole out Rs 1 crore per annum to each MP so that they could spend this to create worthy infrastructure in their constituencies.
In 1998- 99, the amount was doubled to Rs 2 crore and in 2011the allocation per MP per annum was hiked to Rs 5 crore. Narasimha Rao knew only too well that with the propensity for a large number of MPs to look for easy money to line their own pockets, the scheme would be misused. But he was prepared to let that be so as to lure the MPs to keep his government going.
A monitoring mechanism was put in place, but there is no lack of ingenuity in this country to circumvent established procedures. There are myriad cases of gross violation of the guidelines of the scheme by many members. These include MPs investing these funds in private trusts and societies created by them; recommending projects that are prohibited; insisting on choosing the implementing agencies and handing over the cheques to them; wanting to control payments to contractors; and constantly resisting transparency and accountability. The CAG has been unfavourably disposed towards the scheme and with good reasons. It has pointed out time and again that these funds are misused, are not monitored effectively, and in most cases, keep piling up without being spent.
Indeed, there is a strong basis for abolishing MPLAD as it breeds leakage of public funds and inferior work. Damning evidence has been found of misuse and diversion of funds and many CAG reports have spoken of it, but the scheme goes on, since the lobby for its retention is very strong within the MP community. et, it would be in public interest to review the scheme and inject a greater measure of transparency and accountability, if the scheme is to be retained at all. However, if MPs lack the discipline to conform to the guidelines, there are no two ways -- MPLADS must be scrapped.
The latest data released by the ministry of statistics and programme implementation reveals that a whopping portion of the MPLAD funds will lapse, as the 15th Lok Sabha comes to an end in May this year. No MP has been able to utilise the full MPLAD fund which is allocated for infrastructural development in his/ her respective constituency.
The NABARD Consultancy Services, or NABCONS, has found crores of tax- payers' money diverted by our MPs to promote interests of private trusts and societies, and even NGOs, while disbursing MPLAD funds, in gross violation of the guidelines that make it mandatory for them to invest in constituency development through government agencies.
These violations include ‘ assets’ created under schemes, which ‘ could not be traced’ by the surveyors; construction of community halls, etc, within religious places; funding private business establishments; diversion of computers bought for schools to commercial enterprises; renting or selling community centres built with MPLADS to private players; and repeat expenditures on roads already repaired under MPLADS. Congress vice president Rahul Gandhi recently made a statement that he would like to see the end of MPLADS. He said: “ I want to tell you a reality. If you ask MPs, at least 50 per cent will tell you that put an end to this MPLAD scheme because one has to face problems in the Lok Sabha seats as the scheme does not give so much money that development work can be carried out in the entire Parliamentary seat.
This is something to think about.” While seeking the scrapping of MPLADS because the money allocated is insufficient may be Rahul’s way of looking at it, many impartial observers are in favour of scrapping it because of its widespread misuse and the corruption it has bred. The CAG has examined this scheme thrice and the government has sponsored independent surveys to assess the scheme. On each of these occasions, the auditors and surveyors have expressed concern over lack of supervision at the district level and gross violation of guidelines by MPs.
So low is the credibility of politicians as a class today that skepticism marks the public response to anything that they do even if it is well- intentioned. While there is no harm in principle to funds being allocated to development work in constituencies, the monitoring mechanism needs to be tightened and accountability tightened, so that there is a strong deterrent against misuse of public funds. The unscrupulous among the MPs cannot be allowed to drown out the good intentions of a few.
Hawk Eye WHILE seeking the scrapping of MPLADS because the money allocated is insufficient may be Rahul’s way of looking at it, many impartial observers are in favour of scrapping it because of its widespread misuse and the corruption it has bred. The CAG has examined this scheme thrice and the government has sponsored independent surveys to assess the scheme. On each of these occasions, the auditors and surveyors have expressed concern over lack of supervision at the district level and gross violation of guidelines by MPs.
PVNarasimha Rao stumbled upon this idea of aRs 1cr dole per MP, to develop in them a vested interest in perpetuating the Lok Sabha’s continuance for the full term
With successive reports of the Comptroller and Auditor- General of India ( CAG) pointing fingers at the way a part of the funds allocated under the Member of Parliament Local Area Development ( MPLAD) scheme are siphoned off by some unscrupulous MPs into private pockets, many are thinking aloud why shouldn’t such a scheme be scrapped in the interests of some semblance of morality in public life.
The attacks over dishonesty in public life are bound to intensify at least until the relatively honest leaders of the catalyst for change, the Aam Aadmi Party, are not discredited by vested interests or by their own power obsession. It is a cold reality that in the atmosphere of corruption and misuse of office that prevails today across the country, even well- meaning schemes are subverted to serve private interests by some unprincipled recipients of public money. There is no denying that there are MPs who utilise the scheme to genuinely benefit thousands of people in their constituencies and create infrastructure that is put to genuine good use. But it is equally true that there are enough black sheep to make the MPLAD scheme, which was first rolled out in December 1993, look like a means for MPs to enrich themselves at the cost of the public exchequer.
When former Prime Minister Narasimha Rao conceived the scheme, he was shrewd enough to realise that if his minority government was to run its term of five full years, it needed something innovative to develop in the MPs a vested interest in perpetuating the Lok Sabha’s continuance for the full term. He then stumbled upon this idea for the central government to dole out Rs 1 crore per annum to each MP so that they could spend this to create worthy infrastructure in their constituencies.
In 1998- 99, the amount was doubled to Rs 2 crore and in 2011the allocation per MP per annum was hiked to Rs 5 crore. Narasimha Rao knew only too well that with the propensity for a large number of MPs to look for easy money to line their own pockets, the scheme would be misused. But he was prepared to let that be so as to lure the MPs to keep his government going.
A monitoring mechanism was put in place, but there is no lack of ingenuity in this country to circumvent established procedures. There are myriad cases of gross violation of the guidelines of the scheme by many members. These include MPs investing these funds in private trusts and societies created by them; recommending projects that are prohibited; insisting on choosing the implementing agencies and handing over the cheques to them; wanting to control payments to contractors; and constantly resisting transparency and accountability. The CAG has been unfavourably disposed towards the scheme and with good reasons. It has pointed out time and again that these funds are misused, are not monitored effectively, and in most cases, keep piling up without being spent.
Indeed, there is a strong basis for abolishing MPLAD as it breeds leakage of public funds and inferior work. Damning evidence has been found of misuse and diversion of funds and many CAG reports have spoken of it, but the scheme goes on, since the lobby for its retention is very strong within the MP community. et, it would be in public interest to review the scheme and inject a greater measure of transparency and accountability, if the scheme is to be retained at all. However, if MPs lack the discipline to conform to the guidelines, there are no two ways -- MPLADS must be scrapped.
The latest data released by the ministry of statistics and programme implementation reveals that a whopping portion of the MPLAD funds will lapse, as the 15th Lok Sabha comes to an end in May this year. No MP has been able to utilise the full MPLAD fund which is allocated for infrastructural development in his/ her respective constituency.
The NABARD Consultancy Services, or NABCONS, has found crores of tax- payers' money diverted by our MPs to promote interests of private trusts and societies, and even NGOs, while disbursing MPLAD funds, in gross violation of the guidelines that make it mandatory for them to invest in constituency development through government agencies.
These violations include ‘ assets’ created under schemes, which ‘ could not be traced’ by the surveyors; construction of community halls, etc, within religious places; funding private business establishments; diversion of computers bought for schools to commercial enterprises; renting or selling community centres built with MPLADS to private players; and repeat expenditures on roads already repaired under MPLADS. Congress vice president Rahul Gandhi recently made a statement that he would like to see the end of MPLADS. He said: “ I want to tell you a reality. If you ask MPs, at least 50 per cent will tell you that put an end to this MPLAD scheme because one has to face problems in the Lok Sabha seats as the scheme does not give so much money that development work can be carried out in the entire Parliamentary seat.
This is something to think about.” While seeking the scrapping of MPLADS because the money allocated is insufficient may be Rahul’s way of looking at it, many impartial observers are in favour of scrapping it because of its widespread misuse and the corruption it has bred. The CAG has examined this scheme thrice and the government has sponsored independent surveys to assess the scheme. On each of these occasions, the auditors and surveyors have expressed concern over lack of supervision at the district level and gross violation of guidelines by MPs.
So low is the credibility of politicians as a class today that skepticism marks the public response to anything that they do even if it is well- intentioned. While there is no harm in principle to funds being allocated to development work in constituencies, the monitoring mechanism needs to be tightened and accountability tightened, so that there is a strong deterrent against misuse of public funds. The unscrupulous among the MPs cannot be allowed to drown out the good intentions of a few.
Hawk Eye WHILE seeking the scrapping of MPLADS because the money allocated is insufficient may be Rahul’s way of looking at it, many impartial observers are in favour of scrapping it because of its widespread misuse and the corruption it has bred. The CAG has examined this scheme thrice and the government has sponsored independent surveys to assess the scheme. On each of these occasions, the auditors and surveyors have expressed concern over lack of supervision at the district level and gross violation of guidelines by MPs.
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