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In India, one of the common threads that run through many of the corruption scandals is the issue of conflict of interest i.e. public officials taking policy decisions based on their personal interest. For example, Shashi Tharoor in the IPL controversy or Ashok Chavan in the Adarsh Housing Society scam. Many countries take measures to minimize conflict of interest of its MPs by regulating membership of parliamentarians in Committees, making it mandatory for them to declare pecuniary interest, and restricting employment both during and after completion of tenure. For example, the US Senate has a detailed Code of Official Conduct that provides guidelines on conflict of interest. India also has some measures in place to minimize conflict of interest. These are codified in the Code of Conduct for Ministers, Code of Conduct for Members of the Rajya Sabha, Rules of Procedure and Conduct of Business in the Lok Sabha and Rajya Sabha and Handbook for Members of Lok Sabha and Rajya Sabha. Every Rajya Sabha MP has to declare his or her interest (along with assets and liabilities). He has to declare five pecuniary interests: remunerative directorship, remunerated activity, majority shareholding, paid consultancy and professional engagement. Lok Sabha MPs can object to another MP joining a parliamentary committee on grounds that he has personal, pecuniary or direct interest. (For more details, see PRS note on Conflict of Interest Issues in Parliament). On December 1, 2010, PRS held its annual Conference on Effective Legislatures. One of the topics discussed was MPs and Conflict of Interest: Issues and Resolution. Panelists included D Raja, Prakash Javdekar and Supriya Sule. Issues such as requirement for transparency, expertise of legislators, election of honest legislators, and ethical media were discussed. The issues that were raised during the discussion are summarised in the PRS Summary of Proceedings from the Conference.
In the recently concluded Congress plenary, Congress President Sonia Gandhi suggested state financing of elections as a measure against corruption in the electoral process. State funding of elections has been suggested in the past in response to the high cost of elections. A few government reports have looked at state funding of elections in the past, including:
Here is what they had to say: The Indrajit Gupta Committee (1998) endorsed state funding of elections, seeing “full justification constitutional, legal as well as on ground of public interest” in order to establish a fair playing field for parties with less money. The Committee recommended two limitations to state funding. Firstly, that state funds should be given only to national and state parties allotted a symbol and not to independent candidates. Secondly, that in the short-term state funding should only be given in kind, in the form of certain facilities to the recognised political parties and their candidates. The Committee noted that at the time of the report the economic situation of the country only suited partial and not full state funding of elections. The 1999 Law Commission of India report concluded that total state funding of elections is “desirable” so long as political parties are prohibited from taking funds from other sources. The Commission concurred with the Indrajit Gupta Committee that only partial state funding was possible given the economic conditions of the country at that time. Additionally, it strongly recommended that the appropriate regulatory framework be put in place with regard to political parties (provisions ensuring internal democracy, internal structures and maintenance of accounts, their auditing and submission to Election Commission) before state funding of elections is attempted. “Ethics in Governance”, a report of the Second Administrative Reforms Commission (2008) also recommended partial state funding of elections for the purpose of reducing “illegitimate and unnecessary funding” of elections expenses. The National Commission to Review the Working of the Constitution, 2001, did not endorse state funding of elections but concurred with the 1999 Law Commission report that the appropriate framework for regulation of political parties would need to be implemented before state funding is considered.
