2 July, 2009 - DPT ministers and MPs made an impassioned appeal in favour of party funding in Parliament yesterday, saying that both parties were on the verge of collapse, which would harm the cause of democracy in Bhutan.

The discussion surfaced after the public accounts committee (PAC) presented audit reports showing the financial weaknesses of the two political parties – DPT and PDP.

Both parties are in dire shape.

DPT currently has a total debt of Nu 29m, while PDP, after paying off a Nu 20m loan through the auction of former party president Sangay Ngedup’s land, has around Nu 3.5m in administrative debts. These do not include the additional costs that will be incurred to maintain the two parties.

Acting Prime Minister Lyonpo Yeshey Zimba, putting forth his points for state funding, said: “In many other countries, ruling parties resort to raising funds through corruption, but in Bhutan the DPT government is committed against corruption.”

He said that, in case the two parties failed because of financial troubles, then the new ones would only be moneyed people, who could manipulate the system and use it for their own benefit. “With such financial implications and lack of funds, no ordinary or poor person can take part in the future elections,” he added. This, he said, would leave the door open for people, who may just want power and also resort to corruption, and then democracy itself would be in danger.

Lyonpo Khandu Wangchuk said that both parties had already failed financially with big loans and little donations. He said DPT was finding it difficult to even meet basic expenses of rents and utility bills of party offices in 20 dzongkhags, which is a requirement under Election Commission rules. “We’re being chased around by our creditors,” he said.

“It’s very important that democracy, which is a gift from the fourth King, must spread its roots to 20 dzongkhags and 205 gewogs, otherwise we’ll only be having elections every five years,” said Lyonpo Khandu.

He also said that both parties would have to pay their loans by 2011 and 2012, which would not be possible as of now. He said every legal strategy by the party to raise funds to meet basic expenditure, including cutting 10 percent of MPs salaries, had not worked.

He also said that, earlier, it was perceived that state party funding was unconstitutional but, on closer look and consultation, there was no clause prohibiting state funding explicitly in the Constitution.

Lhuentse MP Karma Rangdol stated that financial support was needed for the political parties to prevent corruption and have a world-class democracy.

Punakha MP Tshering Penjor said that the MP’s mandate was to make and amend laws and, if certain laws were not practical, then they should be changed for the greater good.

Trashiyangtse MP Dupthob said, “It won’t effect the rise of new parties since the money will only be given after elections for administrative expenses.”

Opposition Leader Tshering Tobgay acknowledged that both parties were having financial difficulties, but said that, even if the two parties failed, democracy need not necessarily fail, as other parties could come up.

“The real danger to democracy will be if we don’t follow the Constitution and laws on this issue,” he said. Opposition MP Damcho Dorji said that the PAC presentation was on the poor financial position of the two parties and not a discussion on party funding.

The house did not come to any decision on the issue.