Forum discusses flaws in political finance system
LAHORE: Reform proposals on better implementation of existing legal provisions regulating the role of money in politics and improving legal loopholes in the political finance system were discussed at the Consultative Forum organized on the theme of finance policy by PILDAT in collaboration with the UNDP here on Tuesday.
Speakers at the Consultative Forum included PILDAT Chair Ahmed Bilal Mehboob, UNDP Chief Technical Advisor Ali Al-Bayati, DG Political Finance Masood Akhtar Sherwanee, PILDAT Co-Director Ms Aasiya Riaz moderated the discussion. Representatives from different political parties who joined the forum included Punjab Finance Minister Mohsin Leghari (PTI), JUI Information Secretary Aslam Ghauri and Naib Ameer of JI Dr. Farid Ahmed Piracha.
In his welcoming remarks, Ali Al-Bayati said that UNDP helps political actors and stakeholders to develop common ground on political reforms by providing a platform such as this consultative forum. He said that the legal framework and the implementation of political finance are very important and sensitive issues not only for Pakistan but also for all democracies.
Providing background to the forum topic, Ahmed Bilal Mehboob said the August 2 ECP order regarding an 8-year-long “prohibited financing” case sparked debate and raised questions about the political financing system. in Pakistan. Similar cases are pending before the ECP concerning the financing of the PMLN and the PPP as well. He defined that all financial matters related to politics and the political system fall under the domain of political finance, such as political party funding and expenditure, candidate funding and expenditure, candidate nomination form, annual accounts of political parties, annual assets of legislators. and liabilities, the electoral accounts of political parties and the electoral accounts of candidates.
The legal framework for political finance is set out in Article 17(3) of the Constitution and Electoral Law, 2017, Chapter VIII and Chapter XI. However, he said that there were limitations to the effective application of the public finance system by the PCE, such as the prescribed expenditure limits, the lack of timely and sufficient review of the statements of accounts submitted by the candidates, legislators and political parties.
Other remaining key issues are the lack of spending limits for political parties, the dilution of the spending limit for candidates in the 2017 Elections Act, Sec. 132(5) versus ROPA Sec. 49(1), failure to post statements of account, assets and liabilities on ECP’s website.
Masood Akhtar Sherwanee said that every new party must be enlisted by the ECP on the basis of the constitution. The ECP enrolled 156 political parties based on these criteria and assigned 130 symbols. The PCE reviewed the asset and liability statements of all legislators from 2020-21 as well as political party forms from the same period. The examination of 99 parties has started on the basis of their annual declarations.
ECP has locally developed software to digitally cover the full spectrum of political finance information. This would create historical and current political finance data and enable online reporting to the EC and also integrate with other data repositories in the country. Artificial intelligence would also be used to process, understand and examine political finance data. The ECP has also started field monitoring of election expenditures to feed into this data. The global political finance system relies on disclosure, enforcement and sanction.
Masood added that there might be a requirement for a uniform system of accounting software to be used by parties as the law is silent on a standardized form for party and candidate accounts. The consultative session was well attended by members of academia, civil society and politics etc.
