Wednesday, 17 October 2012

Financial accounting be mandatory for MPs, MLAs, MLCs, Corporators, Councilors etc


Financial accounting be mandatory for legislators. All major financial statements be made mandatory from all Members of Parliament, Members of State’s Assemblies (MLAs) and State’s Councils (MLCs), Corporators, Councilors and all elected/ nominated representatives in India. These statements be required un-audited quarterly every 3 month and audited annually.
Following financial statements be made mandatory from elected representatives in India:
1) Personal Balance Sheet
2) Family’s Balance Sheet
3) Personal Profit and Loss/ Income statement
4) Family’s Profit and Loss/ Income statement
5) Personal Cash flow statement
6) Family’s Cash flow statement

An elected or nominated representative before joining the office and assuming the role be required to inform about his direct family (Self, Parent, Spouse, Children, Sibling) who are living as one family and find a name in Ration card. This is really necessary because the politician in office may transfer his/ her illegal assets to account of family members and issue clean statements. Relatives no matter who they are if they live as separate family (different ration card with different family head) be made free from such legislation, else whole legislation appears absurd. It (leaving those who are a different family) may sound absurd at first but is very practical. Laws should be practical rather than everything dealt but remains impractical.
Corporations, business entities, trusts and NGOs are obliged by law to produce financial statements on regular basis to bring in transparency and minimize the misuse of money involved. Since such money is not personal property rather belongs to shareholders, partners, debtors, religious groups or general public in some or other sense.
Elected/ nominated representatives (MP, MLA, MLC etc) may and have been misusing public money illegally. Election commission requires asset’s declaration from them which is really shocking, 200 crore rupees, 150 crore rupees, 270 crore rupees, is this enough transperancy? In next term when they re-contest election their assets are merely double and triple in asset declaration, no one questions them, just to show the amount they legally own is that enough for us (Indians) to be satisfied, they don’t declare how they made it?
Most of politicians declare they came from farmer background, poor families in order to gather sympathy from voters, well and good but how come they acquired such gigantic amount of legal assets? They manipulate with hotels, factories ownership’s returns or donations etc, this is merely manipulation to cover scams. Politician’s financial growth with such backgrounds or with middle class background making such success when it comes to profit making through legal means of hotels, factories etc sounds absurd.
Thus, I demand legislation to make it abiding on all elected/ nominated representatives (MPs, MLAs, MLCs, Corporators, Councilors etc) throughout India to produce/ publish major financial statements (Balance Sheet, Profit and Loss/ Income Statement, Cash flow statement) both personal and family’s unaudited quarterly every 3 month and audited on annual basis to the house they represent or are nominated in, or and also publish in a newspaper or journal officially approved by Govt. of India for this very purpose and be available for sale at appropriate govt.’s outlet.
Such legislation will bridle scams, misuse and usurpation of public money by politicians. In near future if this legislation is made you won’t hear any politician with a legal asset of 200, 300, 350 crore rupees. Merely asset declaration before elections is not suited for current time also not good for bright future of India.
Summary
1) Three major financial statement (in total six) be made obligatory on all elected and nominated members in India, one personal and other politician’s family (sharing name in ration card living as one family)
2) Publish the statements in official govt.’s journal which be available for sale at appropriate Govt.’s outlet.



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