Foreign funds for parliamentary research undesirable: Mullappally

Mullappally Ramachandran, Union Minister of State for Home, has ruffled quite a few high-flying feathers by refusing to give FCRA (Foreign Contribution Regulation Act) clearance to PRS Foundation, which runs the Legislative Assistants to MPs (LAMP) scheme.

In a conversation with Express he explains the reasons and also talks about the funding aspects of NGOs, who now plays a crucial role in our democracy.

Q: Is it true that the Home Ministry has refused to give FCRA clearance to Institute of Policy Research studies to get Ford Funding?

A: An NGO named Institute of Policy Research Studies had approached the MHA for prior permission to bring in some funds as donation from Ford Foundation.  The amount is supposed to provide research support to the MPs and MLAs. The government think that it is not desirable that our legislators accept foreign support channeled through an NGO for their Parliamentary research assistance. We are very clear on this. But it is incorrect to say that we declined Ford Foundation’s offer. In fact, we had no reference from Ford Foundation.

Q: But don’t you think quality research support from professional groups like Centre for Policy Research enable the legislatures to upgrade their performance?

A: It is not the issue. The FCRA, when originally enacted in 1976, was envisioned to keep Parliamentary institutions and individual working in the important areas of national life away from foreign influences. It is true that in today’s complex world, a legislator’s work involves research for the discharge of his Parliamentary duties. But getting it from agencies, how professional they may be, is not the answer. We should have an alternative mechanism.

Q: Foreign funds are already coming to India to NGOs and voluntary organisations. Why a denial mode only when it come from Ford Foundation?

A: It is not the case. There is no special favour or any hostile attitude to any organisation.

Q: Is there any mechanism now to monitor the functioning of the NGOs in respect of their contributions received from abroad?

A: There are regulations prescribed in FCRA 2010 and the Rules 2011. The MHA is bound to ensure that the foreign contribution received for a specific purpose is not misused or diverted.

Q: But what sort of mechanism is in position to ensure this ?

A: The Act stipulates certain obligations on the recipients and on banks for regulating foreign contributions. The MHA scrutinizes the audited accounts of the recipient organisations.

Q: Is auditing of all these NGOs feasible ? Are there instances of taking action against the erring NGOs ?

A: As per the FCR Act, the Associations have to file FC3 form annually, and their accounts to be duly audited by Chartered Accountants. But, I agree, it is practically not possible to scrutinize all these forms to find out discrepancies or violations of FCRA. The ministry undertakes detailed scrutiny and audit of accounts of the recipient associations that were reported to have violated the provisions of FCRA.

We have referred 24 cases to the CBI. Seven have been referred to state police. Seventy NGOs have been prohibited from receiving foreign contribution. Accounts of 30 NGOs have been frozen and 35 NGOs have been placed in prior permission category.

Q: Could you elaborate on the NGOs receiving the foreign funds and the quantum of funds they receive?

A: The number of NGOs registered under FCRA as on July 2012 is around 39,000. The foreign remittances received by the NGOs during 2010-11, if I remember correctly, was to the tune of `10,430 crore.

Q: Why is the government too hostile against some NGOs participated in the agitation against the Koodankulam nuclear power plant ? Has the ministry got any clear cut evidence on the foreign hands behind this agitation?

A: Nine out of the 12 NGOs involved in the protest are FCRA registered, and all these nine are primarily funded by Europe-based foreign donors. We have information to suggest that protests were spear-headed by these nine NGOs, who have violated FCRA provisions. They were involved in the political protests against project, which is in violation of the provisions of Section 5(1) of FCRA 2010.

 Q: What action has been taken against them ?

A: The inspection of their accounts has revealed violation of FCR Act. Criminal probe has already been initiated by the CBI state police.