PAC draft report indicts Raja, slams PMO

File Photo: DMK MP M.K. Kanimozhi addresses the media after the high level committee meeting of the party in Chennai on Wednesday.
 
New Delhi, April 27 (PTI): The Public Accounts Committee has, in a draft report on 2G scam, indicted former Telecom Minister A. Raja and came down heavily on the Prime Minister’s Office and the Cabinet Secretariat for not taking “corrective action” while not sparing even the Prime Minister for “some unfortunate omissions”. The report circulated by PAC chairman Murli Manohar Joshi, which is most likely to be contested by members of the ruling United Progressive Alliance, is also understood to have attacked the then Finance Minister P. Chidambaram for recommending to the Prime Minister to “treat the matter as closed” instead of taking against those responsible for loss to the exchequer.
It reportedly had some unpleasant words for Prime Minister Manmohan Singh, who had kept his office at “arm’s length” in 2G spectrum issue which helped Raja “to execute his unfair, arbitrary and dubious designs”. The report says the Prime Minister on January 3, 2008 wanting to keep the PMO at “arm’s length” seemed to have given an “indirect green signal” to Mr. Raja to go ahead and “execute his unfair, arbitrary and dubious designs”. The controversial distribution of licences and spectrum was taken by the DMK representative in the Cabinet on January 10, 2008, which, according to the CAG, had resulted in a presumptive revenue loss of over Rs 1.76 lakh crore. The report, which will come up for consideration at Thursday’s meeting, said the PMO certainly either failed to see the “forebodings or was rendered a mute spectator”.
The committee said it was highly perturbed to note that the considered and imperative advise given by the Prime Minister and genuine concerns expressed by him on the developments in the telecom sector in his November 2007 letter to Mr. Raja was “just disregarded” by him.  “The Prime Minister was in fact misled when he was informed by the minister (Raja) that the issue of auction of spectrum was considered but not recommended by the Telecom Commission and also not recommended by TRAI. The minister was saying half truth, concealing the other half, concealing his ulterior design,” the report said. In its criticism of the PMO, the report said the PMO’s reply that no suggestion of the Law Minister to set up an Empowered Group of Ministers was received by them does not convince the committee.
”...the PMO was very much aware of Law Minister’s suggestions but the counter view of the Communication Minister got overriding preference to the Law Minister’s view for some unknown reasons and thus no effort was made by the PMO to initiate the process of constitution of the EGoM.  “The PMO certainly either failed to see the forebodings or was rendered a mute spectator,” the report said. However, the report had a word of praise for the then External Affairs Minister Pranab Mukherjee who had in a note to the Prime Minister revealed that he had underlined the responsibility of the government to frame, revise and change the policy in a transparent manner and then follow it in letter and spirit.
Mukherjee had also remarked that while keeping on issuing new licences, the criteria for grant of the licences may be strengthened and put in public domain at the earliest. Thus, it is evident that he did not give any wrong advice to Mr. Raja who in turn “distorted the facts while writing to the Prime Minister”. Not only that, Mr. Raja “arrogantly” termed the suggestions of the Law Minister to refer the spectrum related matter to EGoM as “out of context”. He informed the Prime Minister that the cut-off date has been fixed at 25th September, 2007 on the plea of shortage of spectrum whereas on another occasion he had said that there was enough scope for allotment of spectrum to few new operators.  “His (Raja) assurance to the Prime Minister that he was not deviating from the established and existing procedures was a blatant lie as he deformed and distorted the first-come, first-serve (FCFS) policy,” the draft report said.
In its comments on Mr. Chidambaram, the report said “the committee are shocked and dismayed to note that the Finance Minister, in his note dated February 15, 2008, acknowledged that spectrum is a scarce resource and the price of spectrum should be based on its scarcity value and efficiency of usage but made unique and condescending suggestion that the matter be treated as closed.  “The committee believed that ends of accountability demand that any wrongful loss caused to the government is made good and the guilty brought to justice.  “The committee view it most unfortunate that since the Finance Minister, the guardian of the public exchequer and entrusted with the principle task of mobilisation of resources for public welfare, instead of initiating stringent and swift action against all those responsible for the whopping loss to the exchequer, pleaded with the Prime Minister to treat the matter as closed,” it said.
The committee found the Secretary of Department of Economic Affairs deficient and wanting as he failed to bring the matter to the notice of Cabinet secretary or even in writing to the Finance Minister even after irregularities became public and there was public outcry for the huge loss to the public exchequer. It sought explanation from the then Secretary, DEA and all those who chose to be silent and pleaded for forgetting the loss and treating the chapter as closed
 
DMK backs Kanimozhi, to fight chargesheet battle legally
 
Chennai, April 27 (Agencies): Expressing surprise over the inclusion of the party’s Rajya Sabha MP M.K. Kanimozhi in the supplementary charge sheet in the 2G spectrum allocation case, the Dravida Munnetra Kazhagam’s high level committee declared on Wednesday that it would face the situation legally. A resolution passed at its 90-minute long meeting at the party headquarters, chaired by its president and Tamil Nadu Chief Minister M. Karunanidhi, alleged that ever since the Comptroller and Auditor General of India had observed that the exchequer had suffered a loss to the tune of several crores of rupees in the allocation of 2G spectrum, there had been attempts by a dominant section to use the issue as a “political chess board”.
Based on this, an investigation had been launched by the Central Bureau of Investigation and former Telecom Minister A. Raja and directors of various companies had been arrested and lodged in the Tihar Jail. It was surprising to note that the names of Ms. Kanimozhi, a stakeholder in Kalaignar TV, and Sharad Kumar, director in the company, figured in the charge sheet even though the channel had explained that it had only taken a loan of Rs. 200 crore from another company and that it had repaid the amount with interest and submitted the relevant details to the Income Tax Department. The resolution also charged the media with blowing this issue out of proportion, seizing it as an excellent opportunity to tarnish the DMK leadership’s image. Attempts were being made to make it a political issue and cause loss of trust among constituents of the Democratic Progressive Alliance in the State in a bid to break the alliance.
It alleged that “certain political leaders whose culture and way of life is corruption” and sections of the media bent upon toppling the DMK and Mr. Karunanidhi, were trying to exploit this (2G spectrum issue) in order to rattle the party.  “The DMK will not wilt under this propagand a blitz. As it was confident that justice would be ultimately established, the party decided to handle this issue through legal means,” the resolution added. Later speaking to the media, Mr. Karunanidhi refused to say anything regarding the 2G spectrum issue and also how the CBI was acting in this regard except reiterating that everything would be handled legally. To a question on whether Ms. Kanimozhi and Mr. Sharad Kumar would seek anticipatory bail, Mr. Karunanidhi said it was for the lawyers to decide on this. Will she respond to the summons issued by a Delhi court to appear before that on May 6? “She is not like Jayalalithaa (former Chief Minister and All India Anna Dravida Munnetra Kazhagam general secretary) to avoid court appearances,” he retorted.
 
Govt. dismissive of PAC draft report

New Delhi, April 27 (PTI):
Incensed by the leak of a draft report of Public Accounts Committee prepared by Chairman M.M. Joshi, the government on Wednesday was dismissive about it and targeted him, saying he was acting as a BJP member rather than the chief of the Parliamentary panel.  “This is not a report of PAC but that of Joshi...One should understand the difference. The PAC is meeting tomorrow,” a senior minister said when asked to react to the report which has raised questions on Prime Minister Manmohan Singh and criticised P. Chidambaram in his previous portfolio as Finance Minister. Another minister said Joshi “has been acting like a BJP member rather than the Chairman of PAC.” Noting that the PAC Chairman is “one among equals” who is appointed by Lok Sabha Speaker, the minister said “the members of the PAC have been routinely complaining that they have never been given the agenda of the PAC meetings.” Even the information coming from the Telecom Ministry was never shared with the members, the minister said citing the refrain of PAC members. The PAC is meeting on Thursday with an intention of adopting the report, two days ahead of the end of the Committee’s term.