Monday, September 5, 2011

India's corruption scandals


India's ruling Congress party has been hit by a series of damaging corruption scandals over the past year. The opposition has made regular calls for Prime Minister Manmohan Singh to resign, only adding to the difficulties of a politician once seen as India's most honest.
BBC news considers the major corruption controversies to have beset the government in its second term of office.


WIKILEAKS: 'CASH FOR VOTES'

Anti-corruption protest in Jammu in February 2011There have been protests against the perceived rising tide of sleaze
There was uproar in India's parliament on 17 March after a leaked cable from the whistle-blowing Wikileaks website described how a senior Congress aide showed a US embassy official "chests of cash" allegedly used to bribe MPs to support the government in a crucial vote of confidence in 2008.
The vote was over a controversial deal between India and the US which paved the way for India to massively expand its nuclear power capability. The government's left-wing allies withdrew support, but Congress narrowly survived the vote. Opposition parties at the time accused the government of offering cash for votes.
The Congress party and all of those named in the cable deny the allegations.
The leak came just days after a new report by consultancy KPMG said that corruption threatened India's growth. It said that it wasn't simply the daily diet of petty bribes that hold back the economy, but the huge scams where billions of dollars are allegedly siphoned off by government and industry.
In July, two people - an aide of a politician and a political activist - were arrested in connection with the scandal. The Supreme Court criticised the police for carrying out a "shoddy probe".
A senior MP, Amar Singh, was also questioned after he was accused of offering to bribe opposition MPs to abstain from the vote. He denies the allegation.

ANTI-CORRUPTION CHIEF FORCED OUT

In early March the head of India's anti-corruption watchdog, PJ Thomas, was forced to resign by the Supreme Court on the grounds that he himself faces corruption charges.
The decision was an embarrassment for Manmohan Singh because he chaired the committee that cleared his appointment and publicly supported him.
Mr Thomas says the charges - which are 20 years old - are baseless. He has never been arrested and the charges have also never been tested by a judge in court.

TELECOMS LICENCES

A RajaMr Raja denies having undersold licences to mobile phone firms
In February, Telecommunications Minister Andimuthu Raja was arrested and accused of selling mobile phone frequency licences for a fraction of their value, in what some analysts are calling India's biggest ever scandal.
His colleague in the southern DMK party, MP Kanimozhi, was arrested in connection with the scandal in May and is in jail. She is the daughter of M Karunanidhi, one of India's most powerful regional politicians and an important ally of the Congress-led federal government.
In July, the scandal claimed a third politician - India's Textile Minister Dayanidhi Maran resigned following allegations that he coerced the founder of the mobile phone firm Aircel to sell off his stake to a firm favoured by the minister. He denies the allegation.
Auditors estimate the alleged mis-selling of the licences cost the exchequer nearly $40bn (£24.5bn) in lost revenue. Mr Raja is accused of issuing the frequency licences on a "first-come, first-served" basis instead of auctioning them.
He denies all the charges.
The net of police investigators has been cast wide and they have questioned business leaders, TV bosses and political figures in connection with the alleged scam.
In February the government was forced to cave in to opposition demands to hold a cross-party probe into the telecoms scandal.
In March, a former aide of Mr Raja, who owned a real estate company,committed suicide.

MAHARASHTRA WIDOWS

In November 2010 Ashok Chavan, the chief minister of Maharashtra, one of India's most prosperous states, was forced to quit over his alleged role in a scam involving homes for war widows.
Retired senior army officers and relatives of senior politicians are accused of helping themselves to apartments meant for war widows in Mumbai.
Mr Chavan denies any wrongdoing. He was ordered to resign by Congress leaders while the matter is investigated.

COMMONWEALTH GAMES

Delhi Commonwealth Games opening ceremony in October 2010Suresh Kalmadi and another chief were booed during the Games's opening and closing ceremonies
The 2010 Commonwealth Games in Delhi were beset by more than poor organisation: police arrested various Games officials for alleged financial irregularities.
The build-up to the event was overshadowed by revelations of sleaze, incompetence and missed construction deadlines.
And in January, yet another Congress party head rolled when Suresh Kalmadi, the Games organising committee chief, was removed from this post.
He has been under investigation over claims of corruption and denies any wrongdoing.
In August, a report by India's state auditor tabled in parliament said preparations for the Games were deeply flawed, riddled with favouritism and vastly over budget.
It said there were serious irregularities with bidding and contracts, and that the seven years organisers had to prepare were wasted.
The games cost $4.1bn (£2.5bn) instead of the $270m (£166m) first estimated, while revenue was only $38m (£23m).
The government said parliament would reflect on the report and "decide what needs to be done".

MINING SCANDAL

Chromite mines in IndiaMining has become a source of corruption
BS Yeddyurappa of India's main opposition Bharatiya Janata Party (BJP) quit as chief minister of the southern state of Karnataka in July after he was indicted in a mining scandal.
An anti-corruption report alleges the scam cost the exchequer more than $3bn (£1.8bn) between 2006 and 2010. Mr Yeddyurappa denies any wrongdoing.
Correspondents say illegal mining has been rife for years in Karnataka. The state produces about 45 million tonnes of iron ore a year and exports more than half of it to China.
The anti-corruption report on mining in Karnataka found that the promoters of privately owned mining companies in the Bellary region - where most of the mines are located - paid off politicians, and then joined politics themselves, rising to positions in the state government.
These mining businessmen-turned-politicians exerted so much influence over the local officials that the Indian media began describing Bellary as a "new republic".

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