AccountAid Capsules 2004 (145-164)

A Kolkata court has admitted a petition challenging the depiction of Shri Amartya Sen as a Nobel Prize winner. The petitioner, Shri Subidh Chandra Roy, has filed a case of cheating against the publisher of the translated book 'Unnayan O Swakhamata' (Development as Freedom).

Shri Roy has argued that Shri Amartya Sen did not win the Nobel Prize. He won a prize called 'The Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel'.

This prize is different from the Nobel Prizes and was started only in 1968. The publishers are allegedly depicting him as a Nobel Prize winner in order to increase sales.

What is the truth? Truth, presently, is sub-judice.

But you can visit the Nobel Prize site yourself and make up your own mind about it. The links are given below.

[References:

"Court admits Amartya's Nobel authenticity case", 25-Nov-04, p. 1. Hindustan Times - NEXT, New Delhi

http://nobelprize.org/

http://nobelprize.org/economics/]

163: Tax St. Peter, and pay to Marx...

(4-Nov-04)

Communist parties often criticise religious intolerance. But their own intolerance for all religious behavior is not so well known.

In a move that is designed to generate controversy, the Communist parties have now proposed taxing all religious institutions.

The tax is to take the form of a cess and will be used to fund rural development.

Once the precedent to tax religious charity is set, how long will it be before charity itself is taxed?

Also proposed is a tax on private schools, nursing homes and hospitals.

[References:

"Left wants cess on holy houses", 4-Nov-04, Hindustan Times, New Delhi]

162: Fake Franking Fraud

(11-Oct-04)

The Delhi Police has arrested one person from Delhi for swindling lakhs of rupees by using a fake franking machine. The person was working as a mailing contractor for several organisations, including a public limited company.

The fraud came to light accidentally. One of the Post Office staff became suspicious about a letter, which had been franked. On checking, it was found to be done with a fake machine. The Post Office staff then discovered about 42,000 letters franked in the same way.

On contacting the concerned company, they directed the police to their mailing contractor. He confessed to the fraud. The original machine issued by the Post Office was lying unused in one corner.

Moral of the story? Check carefully before you hand over your mass mailing to an outside contractor. Also, if you are using a franking machine in your office, make sure that your payment procedures are foolproof.

[References:

'Nakli daak tikat ghotala pakda', 11-Oct-04, Dainik Jagran, New Delhi]

161: Revenue Stamps

(6-Oct-04)

The Indian Stamp Act has been amended. The cut-off limit for revenue stamps on receipts has been revised.

You now need to fix a revenue stamp only where the amount received exceeds Rs.5,000.

The value of the stamp remains unchanged at Re.1.

This change has become effective from 10th September 2004.

[References:

Schedule 1, Article 53, The Indian Stamp Act, 1999.

Finance Act, 2004]

160: BCCI's Public Function and the NGOs

(6-Oct-04)

In February 2000, a writ was filed in Delhi High court. The writ prayed that CAG should probe how BCCI spends its money. Later the Central Government also became a party to the case.

BCCI argued that it was a private club. It was neither the state nor an instrument of the state. Therefore, the petition was not maintainable.

The Court has passed an order on this. It has said that BCCI's affairs can be scrutinised by the judiciary. That is so because BCCI has a public function also. It is these public functions that can be scrutinised.

Technically speaking, BCCI is an 'NGO'. Therefore, this ruling has significant implications for NGOs also. Most NGOs have a public function. If this precedent is followed, then people can bring writ petitions against NGOs they don't like. They can ask for judicial scrutiny or how an NGO spends its money.

[References:

BCCI: Board of Cricket Control in India

"BCCI's business is your business too", Hindustan Times, 5-Oct-04

"HC tells BCCI its affairs liable to judicial scrutiny", Pioneer, 5-Oct-04

See also AccountAid Capsule 157 and 159 at www.AccountAid.net]

159: BCCI and FCRA...

(27-Sep-04)

Does BCCI have FCRA? No.

Then how is it able to accept so much foreign funds?

Simple. BCCI has been formed for promotion of sports. Sports is not covered by section 6 of FCRA. This section applies only to NGOs with a cultural, economic, educational, religious or social program.

[References:

Section 6(1)(a) of Foreign Contribution (Regulation) Act, 1976

www1.cricket.indiatimes.com/articleshow/851406.cms

See also AccountAid Capsule 157 at www.AccountAid.net]

158: Fraud Alert for Internet Banking

(23-Sep-04)

Do you operate your bank account on the internet? If yes, then you may be vulnerable to the following fraud:

You receive an e-mail message on your bank's stationery. It says that the bank is updating its customer database or revalidating its software. Or there may be some other similar excuse. It then asks you to log on to your bank account by clicking on a link contained in the message.

What should you do? Nothing. Just delete the message.

Because if you click on the link, it will take you to a dummy address and form. When you fill up the form with your log in information, the information will be stolen.

These people will then use the information to log on to your account. They will then very kindly relieve you of the money in your bank account.

They might later send you a thanks message, but well, don't bank on it.

157: The Richest 'NGO' in India...

(20-Sep-04)

Can you name the richest non-profit organisation in India? It has Rs. 181 crores in bank deposits, and earned Rs. 73 crores last year (2003-04)?

It is in the public eye most of the time. Its employees are some of the highest paid individuals in India. They also spend a lot of their time out of India. You also know most of them by name.

Got it? It is none other than Board of Cricket Control in India.

Surprised? Well, it is registered as a society under the Tamil Nadu Societies Registration Act, 1975.

[References:

www1.cricket.indiatimes.com/articleshow/851406.cms]

156: The War on Terror...

(7-Jun-04)

Saudi Arabia plans to dismantle all international charities operating in the kingdom. Their investments and other assets will be placed under a new commission. According to the Saudi and US authorities, this will stop the flow of their funds to terror groups.

The charities to be dissolved include Al Haramain Islamic Foundation, which was raising as much as 50 million US dollars at the peak of its operations.

Five of the Al Haramain offices (Afghanistan, Albania, Bangladesh, Ethiopia and Netherlands) have been designated as "terror financiers".

The new commission will be called "The Saudi National Commission for Relief and Charity Work Abroad". It will be responsible for disbursing about 100 million US Dollars () annually.

How much is that in Indian rupees: just 4.50 arab rupees or 10% of the annual flow of FCRA funds to India.

[References:

"Saudi Arabia plans to dissolve charities to block terror funding", p. 7, Indian Express, N. Delhi, 4-June-2004]

155: A Fodder Scam in Barmer?

(5-Mar-04)

Last year saw a severe drought in West Rajasthan. To prevent the villagers from selling off their cattle during the drought, the State Government helped arrange fodder for the cattle. This massive effort, which was much appreciated, was oragnised with the help of local NGOs and charitable organisations.

According to a newspaper report, clever truck owners and local middlemen may have siphoned off some of the money for the transportation grant. How? During verification of weighbridge slips, it was found that the fodder was not purchased from one place, and the supporting documents were obtained from another place.

The District Administration has rejected claims aggregating Rs.13 lakhs so far. The reporter fears that this may just be the tip of the iceberg.

The claims rejected include:

1. Prani Mitra Sansthan, Barmer: Rs.8 lakh

2. Manav Seva Sangh, Barmer: Rs.1.50 lakh

3. Bhansali Trust, Barmer: Rs.1.25 lakh

4. Zilla Gau Seva Samiti, Barmer: Rs.50,000

The concerned NGOs have stated that they purchased the fodder from truck drivers. They were in no position to verify where the truck owners were getting the fodder from.

[References:

"Barmer mein karodon ka parivahan anudan ghotala", P.9, Rajasthan Patrika, Jaipur, 6-Mar-04]

154: 60% FCRA funds for religious organisations?

(2-Mar-04)

According to the same report, 60% of the funds go to religious organisations, mainly Christian.

Is this true? It is difficult to say.

Our analysis of the top 25 receivers shows that:

· They received Rs.1,097 crores in 2001-02.

· Of this, as much as 79% of the funds were received by organisations with religious linkages.

· The balance 21% was received by organisations which do not have any religious linkages.

[References:

Please note that funds received by a religious organisation may be spent for secular purposes. - Ed.

"NGO ko videshi madad aage rajya sarkar ke niyantran mein", P.3, Rajasthan Patrika, Jaipur, 2-Mar-04]

153: FCRA Department on FCRA

(2-Mar-04)

According to Shri Praveen Shrivastava, Secretary, FCRA Department at Delhi, they receive many reports of cheating related to FCRA every year.

Although they seal dozens of NGO accounts each year, it is difficult for them to monitor the work of all the NGOs with just 20-25 staff in the FCRA Department. The District Authorities will find it easier to monitor the work.

[References:

"NGO ko videshi madad aage rajya sarkar ke niyantran mein", P.3, Rajasthan Patrika, Jaipur, 2-Mar-04

AccountAid Capsules 10, 65, 151 at www.AccountAid.net]

152: Another Glimpse of the new FCRA law

(2-Mar-04)

According to a news report, the Central Government is planning to pass the new FCRA law, called Foreign Contribution Management Act, soon.

The final draft is awaiting cabinet approval. It has been finalised after several meetings between NGOs, the Home Minister and the Law Minister.

Under the new Act, the District Authorities will have a say in the kind of foreign assistance that is accepted.

[References:

"NGO ko videshi madad aage rajya sarkar ke niyantran mein", P.3, Rajasthan Patrika, Jaipur, 2-Mar-04

AccountAid Capsules 10, 65 at www.AccountAid.net]

151: FCRA required for multi-lateral funding?

(2-Mar-04)

The UN organisations and many other international agencies have been exempt from FCRA restrictions for quite some time.

This means that an NGO without FCRA may receive funds from one of these.

The new guidelines make a strange sideswipe at these exempt funds. Para 9 of the guidelines says:

"Bilateral and Multilateral Partners that are exempt under section 2(1)(e)(ii) of the FC(R) Act, 1976, may also restrict their assistance to organisations that are registered under the Act or are permitted to receive assistance under the Act."

Does this mean that UN funds are now being restricted to FCRA registered NGOs only?

[References:

See also AccountAid Capsule 135, 148, 149, 150 and AccountAble 40 at www.AccountAid.net

Ministry of Finance & Company Affairs Press release dated 2-Jun-03; Guidelines for Future Development Cooperation with Bilateral Partners, dated 12-Sep-03]

150: A guide to the guidelines...

(1-Mar-04)

· Do the guidelines apply to all grants coming out of an Embassy's office?

No. These apply only to grants made to NGOs out of the bilateral assistance. These do not apply to grants made by the Embassy out of other, non-bilateral funds.

· Do these guidelines apply to grants from international donor agencies?

No. These do not apply to non-bilateral agencies at all.

[References:

See also AccountAid Capsule 135, 148, 149 at www.AccountAid.net

Ministry of Finance & Company Affairs Press release dated 2-Jun-03; Guidelines for Future Development Cooperation with Bilateral Partners, dated 12-Sep-03]

149: Guidelines for the persistent bilaterals...

(1-Mar-04)

What do the guidelines say?

· Bilateral assistance from the other countries can now be transferred directly to Indian NGOs (para 7).

· However, autonomous bodies, which are largely funded by the Government of India, can not accept these funds.

· The donors will have to follow a procedure for transfer of bilateral assistance to NGOs.

· They should submit a list of the NGOs to be funded twice a year to the Department of Economic Affairs (DEA). A profroma has been given in the guidelines for this.

· These NGOs should have FCRA registration or get prior-permission.

· DEA may make suggestions for modifications. The concerned donor is expected to consider these and modify the list.

· Monitoring will be done directly by the concerned donor agency.

[References:

See also AccountAid Capsule 135, 148 at www.AccountAid.net

Ministry of Finance & Company Affairs Press release dated 2-Jun-03; Guidelines for Future Development Cooperation with Bilateral Partners, dated 12-Sep-03]

148: Say 'No' to ... Bilateral Assistance.

(1-Mar-04)

Last year in March 2003, the Government of India announced that it would no longer accept bilateral assistance from donor countries with 'smaller aid packages'.

In June 2003, it announced that only six bilateral donors could continue to work with Indian government. These are Japan, UK, Germany, USA, EC and the Russian Federation.

In September 2003, it announced some guidelines for bilateral assistance cooperation. These guidelines do not apply to bilateral assistance from the above six donors.

[References:

'Bilateral assistance' means aid or loan transfer from one nation's Government to another nation's Government.

See also AccountAid Capsule 135 at www.AccountAid.net

Ministry of Finance & Company Affairs Press release dated 2-Jun-03; Guidelines for Future Development Cooperation with Bilateral Partners, dated 12-Sep-03]

147: Faith-based fund-raising

(25-Feb-04)

According to a news report in Pioneer:

· A senior Catholic priest wanted funds for an awareness campaign in Palamau district, near Ranchi. He asked for money from the Jesuit Society and other sister concerns of missionaries. However, they refused as accounts for an earlier installment of Rs.14 lakhs were still pending.

· So he turned to his followers in the church. After church prayers, they were asked to invest money in a Mumbai-based organisation called Trust India Concept. Some 20,000 persons found the scheme attractive enough to invest Rs.20 crores!

· Initially the investors got the monthly installments regularly. Later the scheme started floundering. The investors then started raising a hue and cry.

· Currently, Father Dharamsheel Kujur and two of his assistants are confined to the Manresa House office of the Jesuit Society. The police are investigating.

[References:

For more details see, 'Ranchi priest lured followers to invest money', The Pioneer, Delhi, 25-Feb-04, P.8; also at http://www.dailypioneer.com

'India news: Priest charged with swindling public money', Keralanext; http://www.keralanext.com/news/index.asp?id=27510]

146: New dimensions of religious charity

(13-Feb-04)

Tehelka is back as a weekly newspaper. The inaugural issue carries a cover story alleging that the US government is collaborating with missionaries and church groups to promote religious conversion in India.

The story, spanning across two issues of Tehelka, describes the methodology, the sources of funding and names some of the organisations that are allegedly involved in the evangelisation drive.

One of the key ideas of the story is that funds for religious activities are being brought into India by church-based organisations under the cover of HIV/ Aids work.

The newspaper goes on to allege that the Indian Government is not doing much to prevent this drive, which may lead to more rifts in the Indian society.

The news-story is likely to have major implications in the long run for the proposed FCMA bill, and the way foreign contributions are accounted and managed.

Bush Administration's move to fund religious organisations has also met with some criticism in USA itself.

[References:

1. Tehelka, New Delhi, 7-Feb-2004: "Preparing for the harvest...", p.6; "Jesus comes to Karla", p.10; "Those that shall deliver", p.13; "A private faith made dangerously public", p. 18

2. Tehelka, New Delhi, 14-Feb-2004: "Saving lives, harvesting souls", p.32

3. www.tehelka.com

4. www.constitutionparty.com/ Bushs_faith_based_fascism.htm

5. christianity.about.com/library/weekly/aa013001.htm

6. www.mcjonline.com/news/01a/20010202a.shtml

145: Global Development Currency

(12-Feb-04)

An organisation in Netherlands has come up with a novel idea on fund-raising. It has launched 'currency' notes called Raam NL. NL stands for Netherlands. Raam stands for Shri Ram Chandra who is worshipped by Hindus as an avatar of Shri Vishnu ji.

The organisation is a part of Maharishi Mahesh Yogi's group. The currency is fully backed by equivalent Euro deposits in the Fortis bank. Each Raam NL is worth 10 Euro or about Rs.580.

About 167 shops in 45 Dutch cities and villages have started accepting the currency. The Dutch Central Bank has clarified that there is no violation of Dutch laws so long as the 'currency' is not presented as legal tender.

According to BBC, the Raam is also circulating as a currency in Maharishi Vedic City, Iowa, USA.

[References:

"[Shri] Raam goes Dutch", P.54, India Today, New Delhi, 6-Oct-03

"Maharishi's 'raam' wins" The Telegraph, Calcutta, 5-Feb-2003

"Dutch give nod to 'guru currency'", BBC News. 5-Feb-2003 at http://news.bbc.co.uk/1/hi/business/2730121.stm

Raam - The Global Development Currency at http://www.globalcountry.org/EasyWeb.asp?pcpid=1521

Prospectus dated 16-Oct-2003 at www.poverty-removal.org/images/Prospectus_2003-3.pdf

The notes also carry an image of Shri Ram, with a European complexion. According to established Hindu tradition, both Shri Ram and Shri Krishna (as well as Arjun) are known as being dark-skinned. An innocent mistake, or natural racial bias? - Ed. ]

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