Balancing the Lokpal Act

The Central Government on Wednesday put off indefinitely the deadline for the disclosing of assets by its employees and senior managements of NGOs receiving government or foreign aid. The Lok Sabha has passed an amendment to the Lokpal and Lokayukta Act, 2013, which had earlier required such disclosures to be made by July 31. The amendment passed in a hurry without any discussion came about after a delegation of MPs conveyed to the Prime Minister the civil society’s concerns over “disclosures”. The opinion among the MPs of various parties, however, is not unanimous. Some suspect a dilution of the anti-corruption Act, while others feel a legitimate relief has been given to NGOs, many of which are doing good work. The government itself is not clear what exactly it is aiming for, and the relevant section of the Act is now to be taken up by a Parliamentary Standing Committee.

The civil society had felt particularly agitated and saw in the new rules a devise to keep the NGOs in their place. The government has acted against several organisations citing violation of rules or misappropriation of funds. Many of the NGOs were seen to be politically motivated. As NGOs often work among disadvantaged groups and sections, including religious or tribal minorities, all rules pertaining to the oversight of their finances are liable to be exploited for political goals. The exemption to senior office-bearers of NGOs is, therefore, welcome. Many trustees of NGOs who bring vast experience to the table were liable to withdraw for fear of unwarranted scrutiny. Funds of NGOs, however, must continue to be audited; and there are other laws already in place for that.

Unfortunately, government servants have also been granted the leeway in filing declaration of their and their family’s assets. This will be a dilution that may defeat the very core purpose of the Act, i.e., cover loopholes in the system that departments such as the Income Tax are unable to pin. A simple mismatch between income and assets in itself may not provide clinching evidence of corruption, but it does raise a flag, and becomes a deterrent. In combination with the Benami Transactions Amendment Bill passed the same day, the Lokpal Act should be used to build a foolproof net against corruption.