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Stricter checks for MPs’ area funds

For long, members of Parliament have been asking for a raise in their MP Local Area Development Scheme (MPLADS) allocation from the present ...

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For long, members of Parliament have been asking for a raise in their MP Local Area Development Scheme (MPLADS) allocation from the present level of Rs 2 crore per year to Rs 5 crore. They are in for a not-so-pleasant surprise: a set of new guidelines that demand more accountability and more transparency in the manner in which they use their funds.

Under these new guidelines, framed by the Ministry of Programme Implementation in consultation with the Ministry of Parliamentary Affairs, it will be mandatory for all MPs to submit detailed Monthly Progress Reports along with annexures of Audit Certificates from recognised Chartered Accountants as well as physical verification from district authorities.

So far the MP’s virtually had themselves to certify the use of their MPLAD funds with utilisation certifications not going through any fool-proof mechanism with the kinds of checks incorporated now.

The key changes:

• Only 0.5 per cent of the MPLADS fund can be spent on ‘‘completed works and projects’’ for purchase of stationery, office equipment, including computer, telephone and fax charges and on expenses on audit certificates and project monitoring software.

• Banned for purchase from these funds are air-conditioners, refrigerators, vehicles, office furniture or maintenance of office buildings.

• The annual entitlement of Rs 2 crore will be released in two instalments of Rs 1 crore at the beginning of each financial year directly to the district authority.

 
WHAT THE MPs NEED TO DO NOW
   

• For the release of the second instalment, the bar will be raised higher.

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• No more releases unless the unspent balance of funds of each MP is less than Rs 1 crore.

• Utilisation and audit certificates for the previous years have been furnished by district authorities.

• District magistrates will need to fill detailed performas to be submitted to the centre every month. The details include funds received from the centre, interest accrued, total cost of sanctioned works, total funds available in the constituency and funds required to complete sanctioned work.

• Not only these details, district authorities will also have to submit at least five levels of checks before furnishing utilisation certificates.

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Each monthly report will have to carry the name and designations of officers certifying the use of funds at the district level.

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