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India PM offers to answer allegations

New Delhi, December 20, 2010

India's prime minister  offered to come before parliament to discuss corruption  accusations against his government, underlining the pressure  his coalition faces on an issue that has virtually stalled  parliament in Asia's third-largest economy.

Manmohan Singh's coalition faces multiple political crises, including multi-billion dollar graft scandals and high  food prices, putting on line its credibility as a strong  government able to push policies to keep pace with 9 percent  growth.

Singh told the ruling Congress party's first plenary  session since 2006, attended by about 15,000 members, that as  prime minister, he may have made mistakes but he had nothing  to hide.

 "I sincerely believe, like Caesar's wife, the prime  minister should be above suspicion, and it is for this reason  that I am prepared to appear before the Public Accounts  Committee," he said, referring to a parliamentary panel which oversees annual government accounts.     

Singh was seeking to mollify an assertive opposition that  stalled the last parliament session over demands the  government accept a wider investigation into a $39 billion  telecoms licence scandal that resulted in the sacking of  Telecommunications Minister Andimuthu Raja.

Opposition parties have threatened to shut down the  February session of parliament as well if the government did  not agree to a more powerful joint parliamentary inquiry,  which would have the power to call Singh for questioning. The  opposition would have freer rein in such a panel.

"Ceasar's wife does not choose the forum of inquiry," Arun  Jaitley, spokesman of the main opposition Bharatiya Janata  Party (BJP), told reporters, reiterating their demand for a  joint parliamentary committee (JPC) investigation.     

"If you have nothing to hide please be up front and answer  these question (in a JPC)."     

Singh's pledges to fight corruption are unlikely to  satisfy critics, who say words will have to be followed up  with action, including prosecutions in the telecoms scandal  and the organising of the graft-mired Commonwealth Games in  October.

Corruption is widespread in India and prosecutions are  rare, particularly of high government officials or political  leaders.

The world's second-fastest growing major economy ranks  87th on graft watchdog Transparency International's list based  on perceived corruption -- a worse rating than rival China.

Investors have so far shrugged off these issues, attracted  by one of the world's fastest-growing economies, but say the  glacial pace of economic reforms, such as opening up the  market to foreign investment and boosting the rule of law,  could drag on India's ambitions to expand its economy at  China's pace.

The crisis is a test of Singh's ability to tackle  corruption. It also exposes his Congress party's vulnerability  in coalition politics despite its overwhelming election  victory last year.

India may have lost $39 billion in revenue when lucrative  telecoms licences were sold in 2007-08, according to a state  audit report. Congress leaders have been linked to graft  during the Commonwealth Games and in seizing prime property.

The deadlock in parliament has meant policymaking has  drifted in limbo, economic reforms have been delayed and  leaders like Singh have been accused of neglecting governance  issues.

But Singh, who in a rare move has had to defend himself in  the country's top court against allegations of inaction  against Raja, rejected such accusations.

"As prime minister of this great country for six and a  half years, I may have made mistakes, but I have tried to  serve my country to the best of my ability."     

"We are conducting a thorough probe in all aspects of the  organisation of the Commonwealth Games and the 2G (telecoms)  spectrum allocation. These inquiries will be pursued  vigorously. And it is my promise to you that no guilty person  will be spared, whether he is a political leader or a  government official." - Reuters




Tags: India | Prime Minister | telecom scam |

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