The Hindu Business Line : ICWAI bid to stall Govt move to increase its hold

SECTIONS of the cost accounting fraternity, members of Institute of Cost and Works Accountants of India, have started approaching select Members of Parliament in their bid to stall the Government's plan to increase its hold on the institute. The Government has proposed to amend the CWA Act and have more representation on the ICWAI central council.

While ICWAI office-bearers are ensuring that names of these MPs are not being made public, they admit that Parliamentarians' support will be crucial in view of the stand taken by the institute with respect to the amendment. Mr B. Majumder, Vice-President, maintains that ICWAI's approach is purely based on the need to "uphold professional independence and prevent interference by bureaucrats."

The Government, which has four nominees in the 16-member central council, plans to increase this number to five - a step that may well turn decisions in its favour. It is felt that five will provide the Government the critical strength needed to take advantage of possible divisions within the council.

It may be mentioned here that the proposed revision of the Act has already been formally criticised by Dr K.L. Jaisingh, President, whose latest communiqué to members points out that the "desirability" of the move is a debatable issue.

The institute has instead urged the Government to actively consider two other proposals, both of which have been discussed for a long time at various levels. The first relates to the change of ICWAI's name to ICMAI — `Institute of Cost and Management Accountants of India.' The second pertains to the inclusion of cost accountants in the definition of `accountant' in the Income-Tax Act, 1961.

"In the era of free market economy, the Government should minimise its control over professional organisations such as ours," Mr Majumder states, adding that bureaucratic influence should be eliminated especially in light of the reforms recently introduced by ICWAI. Such reforms mainly relate to syllabus, which has been strengthened with the help of IT.

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