In the recent financial bill, the cap on political funding has been removed and companies will also be able to keep the name of political parties they funded confidential in their accounts. Previously, companies were allowed to donate a maximum of 7.5 % of their net profit to political parties, now this has been removed, which will allow free flow of fund to political parties. Companies still have to disclose the full amount donated, however, they don’t have to disclose which political parties they donated to. Nevertheless, the limit to pay in cash is reduced significantly.
When it is unaccounted free flowing of money received by political parties, there are high chances of money laundering by politicians. This is completely opposite of what the present government was campaigning about. They told us they will bring back black money from offshore banks, but now they are making it easier for political parties to hide more black money.
Is it all hype when they talk about addressing corruption? Recently they said they have asked for account details of 10 companies in the Swiss bank. Is it actually possible to get account details from the Swiss bank, unless there is a reform in secrecy law in the Switzerland? Even if these banks disclose account details, by then the money would have moved to other offshore banks in the world. And you can actually keep chasing the money and never to get it. Besides, it is highly unlikely that Swiss government will want to open their books. If they do so the whole confidentiality matter will perish.
It is almost impossible to bring back black money from the off-shore banks. But the government can take a step towards controlling the money before it goes out or can try to combat tax evasion. But I really doubt the intention of the government in combatting corruption. They publicise of small anti-corruption moves but behind the scene gulp the whole county. The current amendment in the political funding is an example.
The effort is to deceive common people and half the work go into designing strategies to fool people. Ultimately, that’s what matters to them (all parties), the vote bank.