Why would a public sector undertaking (PSU) like Coal India or National Thermal Power Corporation (NTPC) place advertisements in a Marathi magazine called Brahman Manas (which roughly translates to Brahmin Mindset)?

Why would a PSU, for that matter, fund boat races in Kerala or sponsor events for a certain animal rights organisation?A four-month-long investigation using the Right to Information (RTI) Act reveals how Members of Parliament (MPs), ministers and leaders across parties use their official positions to cull favours in the form of advertisements or funds from PSUs for organisations, publications and events with which they are directly or indirectly associated.

PSUs are independent companies under the central or state governments: they have the financial and operational autonomy to decide where they want to spend their money under corporate social responsibility (CSR) or corporate communications (CC). The decision on both these expenditures must be taken independently by the designated PSU officials on whether an ad or sponsorship will bring profitability, growth or any other benefit to the PSU. But it appears that PSUs in fact have little autonomy in deciding its CSR and CC spend.

Over a five-part series, Newslaundry will detail the contents of over 2,000 letters obtained under the RTI from 12 PSUs – including well-known PSUs like NTPC, National Highway Authority of India (NHAI), Gas Authority of India Limited (GAIL) and Oil and Nation Gas Corporation (ONGC). Many of these letters point to a clear conflict of interest.

These are letters written by MPs and ministers – including the ones in the Modi Cabinet – between January 2011 and April 2015 to PSU chiefs asking for funds anywhere between Rs 10,000 and Rs 70 lakh. The letters are written on the official letterheads and form part of official communication by these elected representatives.

The RTI enquiry shows that the otherwise beleaguered PSUs have wasted several crores of public money every year by humouring requests for funds by politicians: ONGC, for instance, spent over Rs 4.3 crore between 2012 and January 2015 following requests made by MPs; Power Grid Corporation of India (PGCIL) spent Rs 90 lakh from January 2011 to April 2015; GAIL spent around Rs 80 lakh between January 2012 and March 2015.

Indian Oil Corporation spent Rs 71.4 lakh from January 2012 to February 2015.The money was spent on contributions and sponsorships, advertisements in newspapers and magazines, souvenirs and display of banners during the sponsored events.The first part of the series will look at MPs and their letters to PSU chiefs.