Introducing last minute changes in the Finance Bill, 2017, during the Budget Session, the government had brought in amendments to the Companies Act, allowing companies to donate more than 7.5 per cent of its average net profit in the three preceding financial years to a political party
The Election Commission has asked the government to review the changes it made in the Companies Act removing the cap barring a company from donating more than 7.5 per cent of its average net profit. It has also flagged concerns on the issue of electoral bonds saying it is going to be big challenge as it would make the politically funding totally opaque.
In an interview to DNA, outgoing Chief Election Commissioner Nasim Zaidi said, "Because of changes in the Companies Act, even loss-making companies can be set up to contribute to political funding. The changes in Companies Act, in our view, are going to be a big challenge. The Commission has taken up this issue, asking the government to review it in the interest of transparency. Hopefully, the government will consider it."
Introducing last minute changes in the Finance Bill, 2017, during the Budget Session, the government had brought in amendments to the Companies Act, allowing companies to donate more than 7.5 per cent of its average net profit in the three preceding financial years to a political party. Besides, the government had also removed a requirement that made it obligatory for a company to disclose in its profit and loss statement the name of the party to which the donation has been made.
"Our problem is that If parties resort to major funding by electoral bonds and if it does not show up in the contribution report and we are not able to display it on our website, people won't get to know. This is our challenge and major concern. It introduces a lot of opaqueness."
He said the election commission is very soon going to prescribe procedures where a definite percentage of paper slips will also be counted along with the results of the EVMs.
"At least in one round they will be counted first and then tallied with the result of the EVMs. I am sure this step will settle the controversy about EVMs for once and all. Though we removed all misgivings during the EVM Challenge where only two political parties showed up and returned satisfied after learning about the robust voting system," Zaidi said.
Zaidi, who will hand over the charge to his junior colleague Achal Kumar Joti on July 5 was unequivocal in keeping the sanctity of the post of Chief Election Commissioner.
"Personally, I am totally opposed to CEC accepting any post retirement government job. Nobody should accept it. As I understand there is an unwritten ethos in the Commission. It should be maintained," he said.
Sad the way certain political leaders behaved during recently held elections in five states, Zaidi was firm on Commission to be given contempt powers.
"We are a constitutional authority, we cannot fight it out on streets with political leaders. Another alternative is to file defamation case and stand as a complainant - Election Commission Hazir Ho! We do not want that too. Contempt is the only answer."
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