Who Is Stealing Pharma CSR Funds

 

A Pharma Unit in Sikkim

The answer to this question can be found in the list of donors who have contributed large sums to the ruling party in the state. The list, prepared from the communication from the Ruling party to the Election Commission, has been circulated by the Association for Democratic Reforms, an election watch NGO.

According to the list Corporate entities in the state have contributed several crores to the Sikkim Democractic Front, mainly in the year 2014-15, an election year. It is obvious that the money was forced out of the company for favours granted and to be granted. It is not certain whether these funds have been given out of the company’s CSR funds or any other account.

 I had a few months ago written to HR Heads of the Pharma companies asking them to specify whether they had contributed CSR funds to the government or its various  agencies and party workers. I have still to receive a reply which prompts me to believe that my belief that CSR funds were passed on is true.

This belief is strengthened by the fact that almost all the CSR heads I met when I visited these units told me that they were not able to fulfill their CSR committments because of the constant demands from ruling party members for personal or government sponsored projects. Many of them told me that they are under pressure from government agencies to fulfill the demands of the party representatives.

That the companies were being forced to contribute to the ruling party coffers is evident from the fact that the opposition Sikkim Krantikari Morcha did not receive any contributions  from these companies

It a usual practice for Corporates to keep all parties happy and contribute to party funds for all parties working in their areas of influence. This is why ruling party representative bend over backward to defend these companies even against the interest of the people and their workers

According to the ADR List the following Pharmaceutical companies contributed amounts list against their name as seen below:

Ms Alkem Labrotary, Kumrek  Rs 35,00,000 cheque No 000148 drawn on HDFC Gangtok (2014-15)

Intas Pharmaceuticals Ltd, Mazitar, Rs 10,00,000 wide cheque No 006610 HDFC Gangtok(2014-14)

Intas Pharmaceuticals Ltd, Majitar Rs 5,00,000 wide cheque No 006611  HDFC Gangtok(2014-15)

Intas Pharmaceutials Lts, Majitar, Rs 5,00,000 wide cheque No 006612 HDFC Gangtok (2014-15)

Indchemie Health Specialists, Kumrek Rs 5,00,000 wide cheque No 092681 Axis Bank Mumbai (2014-15)

All  the above company, allegedly, belong to the same Corporate House The total amount they have donated to the SDF is Rs 60 lakhs

Zydus Wellness, Mamring Rs 25,00,000 wide cheque No 562915 drawn on Axis  Ahmedabad(2014-15)

Zydus Health Care, Majitar Rs 25,00,000 wide cheque No 004544 IDBI Singtam (2014-15)

Torrent Pharma Middle Camp Rs 30,00,000 wide Cheque No 930252 HDFC Navrangpura (2013-14)

Torrent Pharma  Rs 25,00,000 wide cheque No 045894 ICICI

Cipla Ltd, Rango Rs 11,00,000 Cheque No 054249 Axis Rangpo Branch ( 2009-10)

Total amounts to Rs 1,76 crores. Add to this Rs 1,87 crores donated  by the ailing government company Sikkim Distilleries and the total adds up to Rs 3.63 crore

The list above is only for Pharma companies. Other  companies in the state have also contributed to the SDF coffers.

Under the Companies Act 2013 Companies making a certain level of profit are required to set aside a small part of their net profits for community projects which benefit the poor and deprived. These funds are meant to compensate the community impacted by their presence. There are presently almost 40 Pharma units operating in the state. These companies have been provided liberal concessions and rebates to come to Sikkim under schemes to promote industrialisation in the North East.

The main attraction for these companies is the financial incentives they are offered. As a result they are raking in more profits from units in the state than even the mother unit where ever it is set up. The scheme was sold to the states with the understanding that they would generate investment and create job opportunities for the local people.

In reality the picture is far from rosy. It is a story of exploitation starting from the exploitation of the environment, the natural resources, the community and the people. The companies are overwhelmed by the desire to rake in profits without caring for the community, the people or the state. Almost none of the companies have undertaken any CSR project worth the name or visible to the eye.

Since these units are an integral part of major manufacturing units with large exports they need to undertake CSR projects for the benefit of the people. What is presently visible that their CSR is limited to serving the financial interests of those in power from the very top downwards. The donations some of these companies have made to the ruling party is a proof of their anti people activities.

Like funds provided by the Centre to the state which rightly belong to the people as a matter of right and not to those in power CSR funds are rightly meant for the people and their welfare. Companies are not doing charity but are strengthening their licence to operate. They are paying for the sacrifice the people and the community make to allow them to operate in their community.

It  is a matter of great shame that a government which claims to be a government working for he welfare of the community and people should steal funds which rightfully belongs to the people. Can there be a greater shame than this