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PM rules out resignation of Natwar Singh
by Sunil Sharma

    Chandigarh: Prime Minister Manmohan Singh on Wednesday ruled out the resignation of Minister without Portfolio K Natwar Singh from the Union Cabinet, saying that any further action would be taken after completion of the two probes into the Volcker Committee report that had named the Congress and Singh as non-contractual beneficiaries of Iraqi oil-for food pay-offs. "Whatever action could have been done (at this stage) has been taken," Singh told reporters after delivering the P N Haksar Memorial Lecture here. The Prime Minister assured that the enquiry into the issue would be conducted in a "fair" manner and the terms of reference and other details of the probe would be announced soon. Asked if he saw a hidden hand behind the naming of Natwar Singh, who was divested of the External Affairs portfolio on Monday, and the Congress, Singh said, "I will not like to say anything that may prejudice the probe." He also rejected a suggestion that there had been a delay in the action taken by the government in the matter. "At the very first opportunity we had said that action will be taken in the matter", the Prime Minister said. The Government has ordered two probes into the matter -- one by former diplomat Virender Dayal, who has been named special envoy to collect relevant material in the Volcker report from the United Nations and other countries and a judicial probe by for Chief Justice of India R S Pathak.

    Meanwhile, Paul Volcker, the Chairman of the UN oil-for-food programme Inquiry Committee, has assured India that his panel would fully cooperate and share information with the country's investigating agencies within the "legal constraints." The assurance came during a 45-minute meeting with India's Ambassador to the UN, Nirupam Sen on Tuesday. After the meeting, Sen said his impression from the discussions was that Natwar Singh was not sent any notice by the Committee prior to publication of his name as a "non-contractual beneficiary" of the Iraqi oil-for-food programme. He, however, said the Committee is still examining documents to reach a final conclusion on that. Asked what exactly is meant by "legal constraints," Sen said the evidence had been collected from several witnesses and some of them might have given it on the understanding that they should not be identified. In those cases, the Committee would need to get waiver from them before releasing the documents. Asked about the remarks of Volcker that responses were sought from all those who had been mentioned in the report, Sen said the report contained those who were thoroughly investigated and those who were just mentioned on the basis of documents which the Committee considered authentic. Apparently, Natwar Singh's case was not thoroughly investigated by the Committee, Sen said. But he cautioned that final judgment would have to await the examination of all relevant documents by the Committee. Those who were thoroughly investigated were given the chance to respond. Sen said the Committee, as a policy, would share information and documents only with the investigating agencies after they inform it exactly what they are looking for. But it would be necessary to move quickly as the Committee's mandate ends in just over a month. India has already sent a letter to the Committee on the information it is seeking but that would need to be fine-tuned, he added. Asked whether the investigations would stall if some witnesses refuse to give waiver, Sen said there are other ways also to get the information. For example, it could be asked bilaterally. "We shall cross the bridge when we reach there," he remarked. Sen conveyed to Volcker the Government of India's decision to hold inquiry.

     Replying to a question, he said the Committee is aware of the political storm the report has created in India. Sen said Indian investigators would have to look into allegations that the names were not given by the Iraqis but by other "vested interests." That is why India is asking for documents and other information. To a question whether the fact that response from some of the Indian commercial and non-commercial entities was not sought constituted discrimination, Sen said that is one way of looking at it. But the Committee investigated only the cases where the wrongdoing was extensive. So, in case of the entities from which response was not sought, the wrongdoing would have been comparatively much less. In its report, the Committee had named some 2,200 entities worldwide, including around 135 Indian companies, which paid bribes to get contract for the supply of humanitarian goods to the Saddam Hussein regime. Natwar Singh, the Congress Party and Panthers party chief Bhim Singh were mentioned among the "non contractual" beneficiaries who were allocated oil to win political support. The price of sale of oil fixed by Iraq was below the market price and those allocated oil used front companies to buy oil and then sell it to the regular oil companies at the market price. The difference between the price the oil was purchased and sold was the profit the allottees got.