When might is law, accountability takes a back seat

Political parties have several reasons and means to raise funds from the public, though they seldom take the responsibility to ensure the money raised is not misused or swindled. When the party has the last word, those cheated have no alternatives other than to bear the loss, fearing the organisation's might and influence, even as the offenders enjoy impunity, and continue holding the party positions. This is the concluding part of a Malayala Manorama series on 'Missing Party Funds.'
Read Part 1 here: Where do funds raised by CPM, Congress vanish? Parties need no answer
Read Part 2 here: Curious case of vanishing 'memorial' funds

Launching chit schemes is one of the many avenues for raising funds for political parties, including the CPM. The party's local committees to cooperative societies float such schemes citing several reasons: raise funds for constructing a hospital or to finance the wedding of a member of a CPM worker's family.

Chit schemes involving smaller amounts will go smooth, while those for larger sums often go bust, leaving the investors in a lurch.

Doubts have been raised over the manner by which some schemes have gone bust. The party will get involved before cases are filed, and announce a probe against local leaders who have launched the scheme. The probes are mostly eyewash.

To pacify the investors, the party will also promise to repay them the amount that has been invested. The promise, however, mostly remains unkept. Most of the investors will not take up the case fearing the influence and power and influence of the party.

Why police?

The Peravoor chit fund scam is one such example. The chit fund fraud case, however, is a closed chapter, only for the CPM. The CPM-controlled Peravoor House Building Cooperative Society launched a chit scheme, which went bust in 2021.

An investigation into the case found financial irregularities to the tune of Rs 1.05 crore. Soon after the case had become a controversy, the CPM swung into action, demoted some of its leaders and censured others. It also promised to sell off the society's assets to repay the investors.

A year after the irregularities were found, the investors are yet to get their money back. Neither the cooperative society nor the Cooperative Department approached the police with a complaint. The investors, however, lodged complaints, but the police did not register a case. The party intervened and blocked any possible action against those involved.

Incidentally, the culprits, if found guilty, could get up to seven years' in jail. They are still walking free. The CPM managed to shut all possible legal means to punish the offenders.

Some may question the CPM's involvement in a chit fraud case involving a few individuals. The Cooperative Department had asked to stop the scheme, suspecting fraud. P V Haridas, the secretary of cooperative society, who was placed under suspension, later told the media that the scheme continued with the approval of the CPM leadership.

Fund disappears, foundation stone blooms

A foundation stone stands at the site where the BJP had decided to construct a building for its district committee office in Kollam. The decision to construct the office was made in 2020, and a massive fund collection drive was organised in the district. The construction work, however, started and ended with the laying of the foundation stone.

A section of party workers have now approached the party's national leadership with a complaint. They have also submitted the accounts to leadership. Incidentally, the central leadership had promised the lion's share of the Rs 2.5 required for constructing the office. The collection drive by the district leadership was just to kickstart the works.

Realty check

A stauch Congress follower donated 4.5 cents by the National Highway to the party to construct its mandalam committee office at Puthussery in Malampuzha Assembly constituency. The land was donated on condition that it would not be used for any other purpose other than constructing the office.

Years later, the construction work started, not of the office building, but of a private shopping complex. Further inquiry revealed that two office-bearers of the mandalam committee had sold the property. The construction work has now been stalled after the district committee secretary received a favourable court order.

The mandalam leaders justified their act saying the property was sold to raise funds for constructing the office at another place. The ownership of the new property is with a few leaders. Ordinary party workers have been left wondering how a building could be constructed at a site belonging to the leaders, with the money raised through the sale of a donated property.

Lost in transition

Lok Sabha polls, 2009. The All India Congress Committee dispatched Rs 50 lakh through a Youth Congress leader to fund the campaign of its candidate in Vadakara. When the youth leader reached Kerala, the Congress became the butt of a joke after half of the amount was found missing.

The party, even after 13 years, could not provide a plausible explanation for the missing Rs 25 lakh. The youth leader, meanwhile, left the party and cobbled up a new organisation and is now heading it.

The leader had then explained that he lost the money while travelling to Kerala from Mangalore airport. He, however, did not explain how exactly half of the amount was lost. The party did not initiate any action against him, but was later awarded a new post and nominated him as a candidate in a local body election.

Several eyebrows frowned when the Vadakara Lok Sabha candidate, who had lost part of his campaign fund, attended the inauguration of the youth leader's cooperative society.

Early-bird incentive

The Kannur District Congress Committee took six years to construct its office building. The delay was due to "lack of funds," the party explained.

The party, however, did not explicitly explain the "delay." The DCC found itself late while approaching industrialists in the district seeking donations for the office. They got the same reply from the potential donors: a State-level leader from the district had collected donations citing various reasons from the industrialist just before the DCC approached them.

Pushed to the back foot, the then DCC president declared that he would donate the proceeds from the sale of his house to construct the party office.

The president's 'largesse' left the party workers in awe. But not all were impressed. A leader who had raised funds from various sources and handed it over to the DCC president was left fuming. Another leader, who arranged flooding tiles for the office's three floors, went public against the president.

The party workers later came to know that the president had lent some money for the construction. And when the party got enough funds, he took his money back. But his announcement gained him much political mileage.

Double whammy

The BJP launched a strong campaign for the Malappuram Lok Sabha segment, though it did not have much expectations. A week into the campaign, it lost its steam. The candidate realised that lack of funds was the reason for the campaign to fizzle out.

According to the information the candidate received, the party leadership had pumped in a significant amount to fund the campaign, but not even one-fourth of it was utilised. A prominent leader in the district was responsible for handling the fund. Though a complaint was lodged with the party's central leadership, no action was initiated.

The lament of Dharmajan

Congress candidate actor Dharmajan Bolgatty launched his campaign for Balussery Assembly segment with much confidence, but was left lamenting once the result was out.

"Only the funds from the AICC and KPCC, and from my own pocket was utilised for the campaign. Funds raised from the constituency for the campaign were not utilised. Even the money I had provided did not reach the beach committees," he said after his defeat.

He initially lodged an oral complaint saying a KPCC secretary and two Congress leaders collected lakhs for his campaign. The fund thus raised was used for the campaign, he lamented.

When the party leadership discarded his oral complaint, Dharmajan lodged a written complaint in May 2021. After K Sudhakaran took charge as the KPCC president, Dharmajan was summoned and his complaint was recorded a year ago. No follow-up action was initiated.

Recovery notice, new collection drive

A CPM local committee secretary in Thrissur district received a recovery notice from a party-ruled cooperative society two months ago. The notice stated that Rs 5 lakh borrowed from the society was not repaid. The loan was for constructing an office for the local committee.

Though the secretary remained unperturbed, the party cadre was shocked on learning about the notice. The local committee had held a massive collection drive to raise funds for constructing the office. Besides, fund-raising drives were held every month to repay the loan installment. No one knows where the money has gone.

The area committee intervened in the issue, and one installment was repaid after holding yet another collection drive.

No dearth of reasons

Political parties have shortage of reasons to launch a fund-raising drive:

CPM: Fund for routine activities, poll campaign fund, building fund, fund for financing legal cases, fund for supporting protests, bucket collection for special needs, various challenges, collections for foundations/trusts, funds for the welfare of martyrs' families.

Congress: Fund for routine activities, poll campaign fund, president's Kerala Yatra fund, DCC presidents' district yatra fund, garlands of currency notes, building funds, and rarely funds for the welfare of martyrs' families.

BJP: Fund for routine activities, funds for local events, funds for the welfare of balidanis' (martyr) families.

Reasons for collecting funds for individual CPM member:

• If s/he is an accused: Collection to fund legal procedures
• If sentenced to jail: Pension for his/her family
• If injured: Treatment fund
• If killed: Aid for martyr's family, for memorial
• Homeless: Aid for constructing a house
• Unwed daughters: Aid to hold weddings/chit fund scheme
• Debts: Aid for clearing debts

According to a study by The Association for Democratic Research, the CPM collected Rs 12.9 crore from the 226 donors in 2020-21 alone. The figure is excluding donations below Rs 20,000.

In Kannur, where political violence is frequent, each violent incident is an excuse to launch a collection drive. Though CPM collects funds to help the victims of violence, the excess amount is used for other purposes as decided by the party.

The recent controversy was over the misappropriation of excess funds collected to provide aid to the family of the slain worker, Dhanraj, in Payyannur.

(Concluded)
Coordination: Joji Simon