Political parties still in financial quagmire

30 January 2009

The ruling party has now decided to extend the Nu 15 million overdraft period for another year.

“Our overdraft period ended on December 31 last year and, within this month, we will have to renew the overdraft period till the end of December 31 this year,” said Tshewang Rinzin, the head of Administration and Finance Division of the DPT.

He said that the Election Commission (ECB) should review the ceiling amount for voluntary contribution from party members which, presently, is set at Nu 100,000. “We made a proposal and the parliament has asked the ECB to look into it,” he said, adding that the last time they had asked about it, the ECB had said it was under process.

According to Tshewang, out of 581 registered members, only 28 members have made voluntarily contributions worth Nu 2.417 million.

However, the Opposition Leader, Tshering Tobgay said, “If it is increased, we’re allowing money to influence politics. Nu 100,000 is already a big amount for most Bhutanese and increasing the ceiling amount would allow the few people who can afford it to contribute more to influence party politics.” He added that it went against the whole idea of separating money from politics.

The Opposition Leader also said that the increase would favour DPT more, it being the ruling party with more supporters.

He said that it was the responsibility of the parties themselves to address their own financial difficulties. He argued that the idea of preventing parties from ‘failing’ at all cost to support democracy was wrong. “If one or the other party fails, there are Bhutanese who can form parties,” he said.

Dr Saamdu Chetri of the Cabinet Secretariat said, “Although the parties have requested the ECB to look into the ceiling amount, I feel it will empower influential groups who can make higher contributions, who could then influence the political parties.” But he added that state funding was appropriate to make democracy unique and vibrant as envisaged by Their Majesties the Kings.

Pem Bidha, the Fund Manager of the ECB, said the commission was reviewing the ceiling amount. “We have reviewed it based on the parties’ first accounts and their liabilities and financial performance,” she said, adding that it will be through shortly.

Regarding money influencing politics, she said it would not depend on the ceiling amount but on how the parties deal with it. “We don’t have any other way of helping the parties financially as state funding has been discarded,” she said.

The PDP has now surrendered Sangay Ngedup’s 67- decimal land to the Bank of Bhutan to clear its Nu 20 million debt. Having accepted the land, the party will soon receive a clearance from the bank, according to party Secretary Lam Kezang.

Lam Kezang said paying Sangay Ngedup for his land would not be a problem if the party members made voluntary contributions. Presently, the party has 200 registered members at the headquarters. Reports of membership renewal are yet to arrive from the dzongkhags. “We have already distributed the forms,” said Lam Kezang.

“Although the pressure from the bank will be reduced, the party will still be in debt as we will have to repay the owner of the land,” said Lam Kezang. He said that the term for repayment of debt for the party was over by November last year due to which the land had to be surrendered.

Lam Kezang expressed concern over the party’s liabilities nearing Nu 5.0 million. “We still have to pay the three print media firms and other suppliers for advertisements and printing materials used during the campaigns and supplies of stationeries and office equipment,” he said.

The party owes about Nu 4.0 million to the media firms and one million to other suppliers. “As the party Secretary, I am handicapped,” he said.

Meanwhile, as of January 31, the DPT will have an outstanding figure of Nu 6.418 million to be paid to the gewog and dzongkhag party workers. According to Tshewang Rinzin, the party also owes approximately Nu 2.996 million to creditors.

By Pushkar Chhetri

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