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SP alleges Rs 9,000-cr scam in BALCO disinvestment
Tribune News Service

New Delhi, May 22
The UPA government found itself on the back foot today when the Samajwadi Party, along with Opposition benches, said corruption, price rise and suicides by farmers were the major “achievements” of the government in two years.

Both Houses of Parliament were abruptly adjourned after Samajwadi Party MPs, though supporting the government from outside, created a ruckus over allegations of corruption during the two years the ruling UPA government has been in power.

On the completion of two years in office, Prime Minister Manmohan Singh and Congress president Sonia Gandhi were preparing to present the report card of the government.

The SP alleged that in the disinvestment of public sector company BALCO, shares of which were currently quoted around Rs 1000, the shares were evaluated at Rs 77 for disinvestment, leading to a scam of Rs 9,000 crore.

As the Lok Sabha met, the Samajwadi Party members were on their feet immediately thereafter, with Mr Ram Gopal Yadav saying his party had given a notice of adjournment motion to discuss the increased corruption and price rice during the present regime.

When Speaker Somnath Chatterjee said the issue could be discussed later, the SP MPs advanced to the podium shouting slogans like “UPA ki kya hai kamayi — corruption aur mehngai” (The achievements of the government are price rise and corruption).

With his repeated pleas for order being ignored, the Speaker adjourned the House till 1 pm. The Rajya Sabha was also similarly adjourned after the Samajwadi Party MPs raised slogans against the government.

Later, when the Lok Sabha reassembled, Mr Yadav said, “Former Foreign Affairs Minister has publicly alleged that the Congress has also been named in the Volcker Committee report for getting illegal benefits from the Saddam regime in Iraq.”

“The government has failed to take action in various corruption cases, including the import of wheat, though the same Australian company that has been given the order, has been indicted in the Volcker Committee report for paying kickbacks,” he said.

He said, “Finance Minister P. Chidambaram was associated with the Vedanta group, which has taken over 51 per cent stake in public sector company BALCO. As per the agreement, the government is now planning to disinvest the remaining 49 per cent stake to the company. But it has evaluated its share at Rs 77 as against about at Rs 1,000 quoted in the market, leading to a possible scam of Rs 9,000 crore.”

BJP members supported him, while members of the ruling party tried to stop him. BJP Deputy Leader V.K. Malhotra demanded that the government should come out clean on the charges of Natwar Singh against the Congress. He alleged the Scorpene (submarine) deal was bigger than the Bofors scam.

“The Enforcement Directorate should inquire into the issue relating to the Congress (in the Volcker report). Where has the money gone?” he asked.

CPI leader Gurudas Dasgupta said, “All those responsible for corruption should be brought to justice by the government.”

JD(U) leader Prabhunath Singh said several cases of corruption had been reported in the two years of the UPA rule.

Replying to the charges about BALCO shares, Mr Chidambaram said he had indeed been a director of the company “as a private citizen”, but had resigned after becoming a minister. The Prime Minister was aware of this, he said.

He said no final decision had been taken on valuation or to sell residual shares. The valuation report was with the Ministry of Mines, he added.

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