Accountants in high demand this election season

[Barun Mitra, New Delhi]

CAs in hot demand this polls
TNN | Mar 21, 2011
http://timesofindia.indiatimes.com/city/kolkata-/CAs-in-hot-demand-this-polls/articleshow/7749871.cms

KOLKATA: Expenditure agents are among Bengal's most-wanted
professionals in the summer of 2011.

The unprecedented expenditure rules for the assembly election is
giving candidates sleepless nights. Parties and candidates are hiring
chartered accountants, chartered accountancy firms and book-keeping
experts to stay on the right side of the law. Even former bank
employees are being sought.

The Election Commission has approached the Institute of Chartered
Accountants of India (ICAI) to prepare a guideline for political
parties. "A core committee of ICAI is working on the guidelines of
expenditure. The EC wants to make a proper accounting framework for
this," a member of the committee said.

From getting a PAN card to opening a separate bank account for
election expenses, the accounting professionals can help candidates
(especially first-timers and those in rural constituencies) with every
nitty-gritty.

State housing minister and CPM candidate from Dum Dum, Gautam Deb,
said: "Such professionals will be hired both at the party level as
well as in individual capacities. And they will be appointed for all
the 294 constituencies."

Deb, a veteran who has headed the high-profile Housing and
Infrastructure Development Corporation (Hidco) from its infancy, is
nonetheless jittery on how best to abide by the Election Commission's
expenditure norms. "It's not enough to have election agents this time.
The process of expenditure accounting looks lengthy and complex. It's
impossible for us to do it on our own. We are especially concerned
about the candidate in a remote village who might not even know what a
PAN card was all about. Hence, professional help is the need of the
hour."

Trinamool candidate Tapas Roy said: "Being an advocate myself, I
shouldn't be over-awed by the recent poll diktats. On second thoughts,
since the norms are stringent, I, too, might get an expenditure agent.
In fact, there is my personal auditor who could help out."

BJP state president Rahul Sinha said, "We have told the Election
Commission how difficult it will be for candidates to do their own
book-keeping. So, we have sought permission for hiring expenditure
agents. The moment the commission gives its nod, we shall start
getting the expenditure agents." Has his party found them already?
Sinha preferred not to give away the names, saying, "They will be
there soon after the EC gives the permission."

But it's true that several mid-sized audit firms have already been
approached by all major political parties. They will be assigned to
keep books, maintain accounts and help candidates with asset
disclosures. Chartered accountant Arijit Chakraborty said as much:
"Some mainstream parties have started approaching, if not appointing
CAs at the party or personal levels. I think it's a great idea to hire
professionals for the job. CAs can help render valuable service and
making this mammoth job of electioneering transparent."

The separate bank account norm, aimed at curbing the use of black
money, is a radical new step but chartered accountants feel there are
still many grey areas, and candidates could cheat the EC if they want
to hide or manipulate facts. Again, this is where "an accountant's
expertise comes in".

A Left Front candidate said: "The norms have only increased the
workload of candidates without any guarantee that infusion of black
money will be checked. The bulk of expenditure by candidates is done
through payments in cash and kind. Where will all the vouchers come
from?" Sumit Basu, chartered accountant, thought as much: "There are
various types of expenditure. Local travelling, for instance, is one
area where vouchers won't be available. Or what about petty cash
spending, like on tea and snacks?"

He added: "The job for the CA won't be easy as there will be grey
areas where expenditure cannot be substantiated. A registered CA must
authenticate all the spending. I think people will hire unregistered
accountants instead for maintaining the log book, or creating vouchers
for hired cars etc."

It'll be a matter of choice whether to get a CA or simply a bank
official who knows accounting like the back of his hand. One thing is
clear, though. Another valuable poll expense will be entered in the
candidate's expenditure account: the accountant's fees.