What surprises one is the sudden spurt in the kind of permissiveness since the fourth year of the UPA1. The spreading scam pandemic simply reveals the feeling in power corridors that any thing can go if one can profess the right kind of loyalty and political commitment. Thus those sitting in Commissions, Authorities and even Raj Bhawans feel safe to do the worst things. In the sweep of liberalisation, some argue, minor aberrations may show up — like a little inflation in a developing economy. Such ethical theorizing may be okay for the reform writers, but not for the ruling parties that are answerable to the voters.
Before the Reliance gas price scandal broke out, the 2G spectrum allotment scam had the pride of place in the murky world of scams. Much has been revealed about the Rs. 60,000 crore fraud. The Left had exposed startling facts about the huge losses to the exchequer. The BJP had staged a walkout in protest against the government's efforts to protect the involved minister. The PM, who was busy mopping up support for his government, had thought it better to compromise on corruption rather than punishing the guilty.
True, in May last, the Congress tried to deny a second term for the involved minister. But the need to please the DMK boss forced it to put the same man in the same ministry. Clearly, it has been a shameless surrender. To be fair, this time the PM has introduced sufficient safeguards in the matter of allotting G3 spectrum. A. Raja is being forced to follow a set of strict guidelines. The trouble with such massive scams is that the ghosts have a tendency to haunt on every election eve. It will depend on the prevailing public mood.
Facts of the spectrum scandal are in black and white. Instead of seeking competitive bids, the minister had assigned the work to two firms - Swan Telecom and Unitech - at the old 2001 prices. It had ignored the vast expansion of spectrum demand since then. Swan, for instance, had brought the spectrum for 13 circles for Rs. 1537 crores. Almost immediately, they sold 45 per cent of their stake to another party for $ 900 million and earned a windfall profit, some thing that could have accrued to the state. The sale took place before the work started and without putting any additional infrastructure. Unitech also made a similar quick profit at the expense of the government.
Of the half dozen scandals haunting the UPA2, four belonged to the ministries under the PM's party. Among them, Defence Minister A.K. Antony comes out with flying colours. If you have any credible information about any kickback, just pass it on. Prompt probe will follow without revealing your name and quick action. The minister had the guts to stand up to the mighty Israeli lobby. Yet despite such obsessive war on corruption, the recent CBI swoop on the Ordnance Factory board chairman and his collaborators showed how deeply entrenched is the swindlers' network.
Next comes the Rs. 2500 crore non-basmati rice export scam involving Kamal Nath, a senior Congress minister. Some claim the PM shunted him from foreign trade to road transport as a punishment. If it is so, it is a light penalty for a fraud committed so blatantly, violating every possible rule with impunity. The fraud came to light when a new regime in Ghana launched an inquiry into the import corruption by the previous minister. Our opposition MPs demanded an inquiry by a joint parliamentary committee. But the PM has rejected the demand outright.
The rice export scam began with a request for exempting the exports to help some African counties on humanitarian grounds. But instead of PSUs, violating all norms, a cartel of private firms were assigned the exports. Records show that copies of important documents were also forwarded by the mysterious hands to the minister. The firms were allowed to procure rice in March 2008 at $280 and they sold at $ 470 in foreign counties. In one case, the letter of credit came not from the government, but Swiss firm Novel. We will know more about it soon.
After rice, it is sugar. The grapevine has lot of it but we have to wait for the details. Meanwhile, we have a rather juicy mid-sea story. After all the noise, we are now told that the mysterious North Korean ship was not transporting missile parts. It was actually waiting for a formal government announcement on free sugar import so that it could unload it in India. The sugar was originally headed for Africa.
And here comes a Rs. 6,000 crore coal import scam. The allegation is that the MMTC tampered with the Central Vigilance Commission's norms to favour a particular firm while inviting tender to import 12.5 million tonne coal for NTPC. The CVC is also probing the last-minute changes in the port of delivery to suit the same firm. After things burst into a public controversy, MMTC is now waiting for the ministry's directive on what to do. One question remains unanswered: At what level did the bungling take place?
Another disturbing trend has been the spread of the scam virus to institutions with essentially a watchdog role. CBI raids on Sarabjot Singh, son of Buta Singh, chairman of SC Commission, show the extent of the rot. The son, using his father's position, allegedly demanded Rs. 1 crore as bribe to save a fraudster. The chairman has refused to resign while the government watched the tandava of corruption helplessly. Another case of 'good governance' relates to Jharkhand Raj Bhawan.
CBI raids on its staff members indicated the involvement of the governor, a Congress man. He has since been shifted to Assam. Last month, CBI raided residences of senior officials of All-India Council for Technical Education (AICTE) and seized unaccounted wealth worth Rs. 2 crores, mostly FDRs, from its chairman. The trouble is that, when in South Bloc politicians and technocrats develop proclivity to ignore the gathering storm. The only entity that can still act without doctrinaire inhibition is the Congress establishment, the biggest stakeholder of the UPA. (IPA Service)
New Delhi Letter
THE 'RAGING' SCAM PANDEMIC!
WILL CONGRESS LEADERSHIP STEM THE ROT?
Political Correspondent - 2009-08-22 09:50
The ongoing corporate war between the two Ambani brothers has one salutary effect. It should alert the UPA government about the need for putting its own house in order. Petroleum Ministry may have the privilege of presiding over the biggest-till date scam in the country in terms of sheer volume. But the UPA2 is sitting over the volcano of half a dozen other scandals, big and small. This is not an overstatement. One only has to look at what has so far been put out in print with clearly actionable evidence.