Walking the walk on campaign financing

Earlier this week, Cabinet granted approval for provisions aimed at regulating campaign finance. The move is one that is long overdue, though its effectiveness can only be gauged in time to come.

On the face of it, the proposals aimed at placing a ceiling on campaign-related expenditure, as well as putting in mandates for each candidate to reveal details of their campaign financing, makes a lot of sense. This is commonplace in most Western democracies, while even in Sri Lanka’s own past post-Independence this was the norm.

However, questionable Government policies that promote use of public finance for political gain are sometimes rolled out from the highest levels of Government. In previous elections, Cabinet decisions were made that benefit the party in power. 

Top Government leaders have also been present to hand out everything from houses and motorcycles to clocks and construction material, some of which were embossed with party colours and symbols. Therefore, it is essential to keep ministers and top political leaders in line more than the public sector.  In 2018, there were allegations that a Chinese State-owned company provided campaign finance to former President Mahinda Rajapaksa ahead of the 2015 Presidential Election and there were also similar allegations that controversial primary dealer Perpetual Treasuries had funded the campaigns of politicians. 

For several years, election watchdogs have urged lawmakers to be mindful of the importance of publicly disclosing sources of campaign funding as a minimum requirement. The unregulated use of finances could have an adverse impact on the conduct of free and fair elections.  The disclosure of campaign contributions, both monetary and in kind, including payments by a contributor to a third-party supplier, will significantly reduce avenues for election campaigns to facilitate illegal activity, principally money laundering and undue influence in the electoral process.

In other countries there are provisions for political parties to declare their finances within a certain time period once they are received. Even though the level of transparency varies, there is a strong need for this element of elections to be addressed as well. As a process that spends public money to elect public representatives, who in turn direct public money, it is essential that the entire system is given a legal overhaul to be more efficient.

Sri Lanka already has some laws that call for asset declaration by candidates but these do not cover the heftier party finances. There is also little attention paid by the media to demanding greater transparency on how candidates fund their campaigns or how funds flow between candidates and parties. Foundations established by various politicians or that have political links also campaign on behalf of certain candidates or parties and accept donations for the same.

Laws requiring the disclosure of political donations are intended to secure and uphold the integrity of the electoral system and, in turn, the integrity of the decision-making of the Government. The goal is to prevent corruption by exposing those who might seek to wheedle their particular causes to the forefront of policymaking or, indeed, buy influence. Knowledge about who has financed politicians’ campaigns helps to expose potential conflicts of interest. It assists in keeping leaders accountable.Many countries have also evolved other systems to tackle fundraising by other means, especially the internet, where policing by conventional laws can be difficult. There are patent concerns that politicians might be persuaded to generate favourable decisions and, thus, appease those who have financed their campaigns. But adverse perceptions can be damaging too. The community’s confidence in the integrity of the democratic process, in the Government itself, might be destabilised on the basis of a perception of a conflict of interest.

In that sense, the recent Cabinet decision is heartening, though in reality talking the talk and walking the walk are two very different things.