KOLKATA: Members of Parliament no longer need to take the official route for spending their annual Rs 5 crore local area development scheme fund allotment for setting up community infrastructure or public utility buildings. The Narendra Modi government has allowed MPs to get the work done through NGOs.
On their part, these NGOs have to be registered with the NGO Darpan portal http://ngodarpan.gov.in maintained by NITI Aayog and obtain a Unique Identification Number. The ministry of statistics and programme implementation, in a recent circular, has amended guidelines for Members of Parliament Local Area Development Scheme (MPLADS) funds utilisation to include such registered trusts and societies. The circular comes with a rider though. An MP can spend a maximum Rs 50 lakh through a single trust or NGO.
The new norm, which marks a sharp departure from the prevailing system in which MPs were required to process their proposals through the district magistrate/commissioner and get the work done only through government agencies, has evoked mixed response in the administration.
Jai Prakash Institute of Social Change director Joydev Majumdar welcomed the move and hoped that MPs will come forward to release funds for social development.
While a section of state officials welcomed the move saying this will lighten the burden on state agencies entrusted with a lot of project work, some feared that these trusts/NGOs may open the doors for money laundering. "It throws open the scope for an MP to allot the money to the NGO he patronises and plough back a portion of the funds back to him. Nodal authorities need to step up scrutiny and assessment of the construction work at stages to plug leakages," a Nabanna official said.
The observation gains significance given the way MPLADS fund allotments have been raised from the annual Rs 5 lakh in 1993-94 to Rs 5 crore in 2011-12, a 10-time increase over two decades.
Former Trinamool MP and retired IAS Bikram Sarkar feared that the new system will make way for corruption. "I have reasons to believe that family members of many MPs run NGOs. This has become the standard operating procedure for a section of MPs. Several studies have shown how MPLADS funds are being misused," Sarkar said.
CPM MP Mohammad Salim, however, won't give all NGOs a bad name. "Like in all other spheres, there are good and bad NGOs. I agree that some trusts are being set up with the aim of money laundering. It is also a fact that many MPs and their families have their own private trusts and NGOs that can create a clash of interests. The nodal officers should therefore check the credentials of NGOs, before release of funds," Salim said.
The CPM MP also highlighted another problem he claimed was unique to Bengal. "I am not always satisfied with the quality of work done by government agencies. In fact, I mentioned this in my letter to the DM in regard to one such shoddy work under my MPLAD. This is happening because of the syndicate raj. This can affect the work of NGOs as well," Salim said.
Trinamool Rajya Sabha MP Sukhendu Sekhar Roy, however, saw nothing wrong in granting funds to NGOs. "No system in India is fool-proof. It always leaves scope for some people to take advantage of the faulty process. Nodal officers can stop sanction if the NGOs are not registered with NITI Aayog or they are not of good repute. Many MPs run NGOs and trusts, but they cannot provide funds to their own NGOs as it amounts to conflict of interest. Even after knowing it if MPs release funds for their own NGOs, then they should face consequences for such favouritism," he said.
Source: http://timesofindia.indiatimes.com/city/kolkata/now-mps-can-allot-ngos-funds-for-devpt-projects/articleshow/58523778.cms
On their part, these NGOs have to be registered with the NGO Darpan portal http://ngodarpan.gov.in maintained by NITI Aayog and obtain a Unique Identification Number. The ministry of statistics and programme implementation, in a recent circular, has amended guidelines for Members of Parliament Local Area Development Scheme (MPLADS) funds utilisation to include such registered trusts and societies. The circular comes with a rider though. An MP can spend a maximum Rs 50 lakh through a single trust or NGO.
The new norm, which marks a sharp departure from the prevailing system in which MPs were required to process their proposals through the district magistrate/commissioner and get the work done only through government agencies, has evoked mixed response in the administration.
Jai Prakash Institute of Social Change director Joydev Majumdar welcomed the move and hoped that MPs will come forward to release funds for social development.
While a section of state officials welcomed the move saying this will lighten the burden on state agencies entrusted with a lot of project work, some feared that these trusts/NGOs may open the doors for money laundering. "It throws open the scope for an MP to allot the money to the NGO he patronises and plough back a portion of the funds back to him. Nodal authorities need to step up scrutiny and assessment of the construction work at stages to plug leakages," a Nabanna official said.
The observation gains significance given the way MPLADS fund allotments have been raised from the annual Rs 5 lakh in 1993-94 to Rs 5 crore in 2011-12, a 10-time increase over two decades.
Former Trinamool MP and retired IAS Bikram Sarkar feared that the new system will make way for corruption. "I have reasons to believe that family members of many MPs run NGOs. This has become the standard operating procedure for a section of MPs. Several studies have shown how MPLADS funds are being misused," Sarkar said.
CPM MP Mohammad Salim, however, won't give all NGOs a bad name. "Like in all other spheres, there are good and bad NGOs. I agree that some trusts are being set up with the aim of money laundering. It is also a fact that many MPs and their families have their own private trusts and NGOs that can create a clash of interests. The nodal officers should therefore check the credentials of NGOs, before release of funds," Salim said.
The CPM MP also highlighted another problem he claimed was unique to Bengal. "I am not always satisfied with the quality of work done by government agencies. In fact, I mentioned this in my letter to the DM in regard to one such shoddy work under my MPLAD. This is happening because of the syndicate raj. This can affect the work of NGOs as well," Salim said.
Trinamool Rajya Sabha MP Sukhendu Sekhar Roy, however, saw nothing wrong in granting funds to NGOs. "No system in India is fool-proof. It always leaves scope for some people to take advantage of the faulty process. Nodal officers can stop sanction if the NGOs are not registered with NITI Aayog or they are not of good repute. Many MPs run NGOs and trusts, but they cannot provide funds to their own NGOs as it amounts to conflict of interest. Even after knowing it if MPs release funds for their own NGOs, then they should face consequences for such favouritism," he said.
Source: http://timesofindia.indiatimes.com/city/kolkata/now-mps-can-allot-ngos-funds-for-devpt-projects/articleshow/58523778.cms
