AG proposes review of policy for financing political parties

Auditor General Niyaz Ibrahim has made recommendations to the People’s Majlis, for the second time, to review the policy of providing financial grants to political parties from the government budget.

The Auditor General made similar recommendations last year as well. However, those recommendations were not accepted by the People’s Majlis, which is currently under heavy criticism for working for the some benefit of capitalist MPs and the political parties to which most of the MPs belong.

AG’s recommendations about the MVR 16.9 billion budget proposed for the next year were sent to the Majlis last week.

In his recommendations, the AG stated that it is not advisable to continue a policy of allocating 0.1 per cent of the annual budget for political parties at a time budget deficit has become a serious economic problem for the country. AG noted that this policy would add to budget deficit.

“Allocating a portion of the total budget for political parties is in reality a process whereby the government borrows and then finances parties out of the borrowed money which it must repay, and this policy is going to add to budget deficit”, read the paper of recommendations sent by the AG.

The Auditor General also advised the Majlis to provide any financial assistance to political parties out of government income.

MVR 15.2 million has been included in the budget as grants for political parties for the upcoming year. This is an increase from 11 million set for the last year.

According to a newly proposed bill on political parties which is currently to be considered by the Majlis, government financial grant out of the budget allocations would only be provided to parties with membership over 10,000.

Fuvad Taufeeq, President of the Elections Commission, said that financial grants to political parties would be granted, as per the policy of the Commission, only upon submission of the audit report of the party, and that 40 per cent of the total amount allocated for parties in the budget would be divided among the parties equally, and that the remaining 60 per cent of the funds would be distributed based on the size of party membership.

There are 16 registered political parties in the Maldives, while 10 of them do not have 3000 members, which is the number required by law for a party to be registered.