The Hindu : Kerala News : Need for strict enforcement and awareness creation Peoplespeak

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Wednesday, Sep 19, 2007
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Kerala

Kerala

Need for strict enforcement and awareness creation Peoplespeak

Hawala deals, a lot of it involving inflow from wage-earners from the Gulf countries, seem to be growing in Kerala. In addition to stringent enforcement measures, is there a case to launch an awareness programme among the common people about the threat such transactions pose to the legitimate economy and the boost they give the underworld? Our readers respond:

Intelligence failure

The presence of hawala elements in the State has disclosed the fact that this illegal form of money circulation is very much intact. Our intelligence agencies failed to detect it. The source of hawala money and the way it is used should be probed. It is a fact that hawala money is used to finance fundamentalist groups. It is a threat to national security. Our intelligence agencies fail to know of such things until it becomes too obvious. The police, excise and intelligence officials should do a better job. The public also has a role to play. Awareness should be created through the media.

Krishna K.

Kochi

Strict enforcement

The problem should be better tackled at the source. Enforcement should be strict. As there is seemingly inadvertent involvement of workers in the Middle East, the authorities should monitor transfer of funds. The Government should make arrangements with the host Governments for this. Only authorised banks should be allowed to operate such things.

Devraj Sambasivan

Alappuzha

Complete anonymity

The hawala system provides almost complete anonymity to those involved. It leaves no document to trace the source of money. Dubai, India and Pakistan form a ‘hawala triangle’ responsible for significant international money laundering activities. The vast majority of common workers who use this system are not aware of the damage they do. Very few know that the money is often used for subversive activities. By controlling hawala networks, terrorist operations can be curbed. It will deprive them of their cash supply. Good governance as well as awareness about the harmful effects of hawala on the socio-economic set-up of the country will definitely help.

Ms. Jogy

Thrissur

Awareness needed

The Government’s anti-hawala drive should also include awareness programmes. It should help the common man understand the designs of hawala operators. Many are aware of the dangers involved. Stringent should be taken against those involved in the deals.

V.P. Ramesan

Tripunithura

Welcome move

Hawala operators run a parallel economy in the country. It threatens the sovereignty of the country as hawala money is used to finance the operations of terrorist groups. A group of people are behind this and they are sure to have political patronage. The Government and the State exchequer incur heavy losses. There are no transaction charges. I do not think that awareness programmes can save the State. Strong action is necessary. Anyway, the steps being taken by the Government to curb hawala operators is welcome.

P. Sankaranarayanan

Petta

No distinction

Kerala’s economy is sustained to a large extent by remittances from those toiling in the Middle East. Many working there prefer to send money through hawala agents without knowing the dangers involved. There is no transaction fee. Over the years, the distinction between ‘white or social hawala’ and ‘black or criminal hawala’ has blurred considerably. Because of the nature of the transactions, criminals and terrorists use this medium to secure finance for carrying on their activities.

Merely educating the people about the dangers of the hawala system is not enough. The banks should extend their reach. They should start operations in more countries thereby creating legitimate channels for hassle-free money transfer. It should be economical and reliable. The representatives of banks should visit the work sites in these countries and do a canvassing exercise to ensure that their money does not fall into wrong hands. The Kerala Government seems to have woken up to the dangers hawala operations can cause. Better co-ordination between the State police and Central agencies is necessary to root out the evil. The Reserve Bank of India (RBI) should step up monitoring of money flow. It should seek the help of the Directorate of Revenue Intelligence, Intelligence Bureau etc for the purpose.

V.N. Mukundarajan

Thiruvananthapuram

Faster systems

Though news about hawala dealings in the State has been pouring in for quite some time, the issue only came to light with the Kerala High Court condemning the lackadaisical approach of the State police in dealing with the issue. Hawala, being a system of fast money transfer, is preferred by many immigrants. These dealings have become a serious issue as it has been found that hawala routes are also being used by anti-social elements like drug dealers and terrorists. An immediate solution would be to reduce the number of people relying on the system. For this, awareness creation is essential. The public should be told about the elements of illegality, consequences of the deals and how it is misused by anti-social elements. The government should put in place easy and reliable money transfer systems so that people do not resort to other means.

Archana V.

Kollam

Telling impact

Hawala transactions have a telling impact on the economy. Various commercial activities get influenced. In fact, the price of land has been spiralling due to the activities of this mafia.

The root of the problem can be traced to the policies of Government both at the Centre and the State. Free flow of money should be allowed. The State machinery should create a hassle-free mechanism for the same.

Thus our people working in the Middle-East can be saved from the unscrupulous hawala agents.

An average Indian or Keralite is afraid of investing for fear of losing his hard earned money. In such a scenario hawala agents thrive.

K.P. Karunakaran Nair

Thiruvananthapuram

Our responsibility

The common man should be aware of the economically important issue — hawala and its influence over the country’s development. This illegal exchange of money will create losses in the Government’s exchequer. People have a responsibility. They should send money only through proper channels. Inflation, rise in the land prices and circulation of black money are among the effect of hawala money circulating in the system

M.P. Madaswamy

Thiruvananthapuram

Campaign needed

It is shocking that the illegal flow of cash is a threat the economy of the State. Hawala transactions, if left uncontrolled, would lead to creation of a parallel economy which will destabilise our country. In addition to stringent enforcement of laws against illegal transactions awareness programmes should be conducted. If big money is used by hawala operators to buy up all available land, there would soon be a stage when the common man would not be able to buy land. The Government has to intervene immediately. Fundamentalist and extremist activities are often funded using hawala money. Activities of hawala operators makes life of the common man miserable. K.K. Kunhikannan

Koyilandy

Economy affected

Hawala money badly affects the economy. People opt to send money through such channels as it is easy. Most people do not know the ill-effects of the system. On the other hand, some engage in hawala deals with total disregard to all sorts of official channels in place. The Government should bring in laws to prevent hawala deals. The Government should be the regulatory authority and the presence should be felt. All money coming to the country should be screened. Emergence of mafia should also be checked as is connected with hawala deals. Land prices get escalated due to the presence of hawala black money. Also, the public has a responsibility. They should get the services of banks to transfer money. The Government cannot alone check the evil.

R.G. Nair

Palakkad

Banks should act

Many non-resident Indians find it difficult to send money home through banks. This is how their money starts circulating through hawala channels. Hassle-free transfer is an issue for most of them. The Government should ensure that a hassle-free mechanism is in place. Nationalised banks should come forward and take necessary steps in this regard.

A.K. Jayarajan

Kozhikode

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