India hops on hot coal scam

The Indian government came under heavy criticism yesterday from the opposition members who accused it of its involvement in a massive coal scam. The Times of India newspaper in yesterday's edition published what it called the draft report of the Comptroller and Auditor General (CAG) saying the government allotted 155 coal blocks to over 100 private sector as well as central and state government units between 2004 and 2009 causing loss to the exchequer to the tune of $211 billion (Rs10.67 trillion, Dh757 billion). Prime Minister Manmohan Singh who was in charge of the coal ministry for many years during the alleged scam period, was present in the Upper House when the opposition launched a frontal attack on the government and demanded a probe by the Central Bureau of Investigation (CBI) under judicial supervision. Preliminary discussions While the government was on the backfoot, a letter from the CAG addressed to the Prime Minister, came to the rescue of the government already reeling from several scams including the Rs1.76 trillion 2G spectrum allocation scam. The CAG in its letter disowned the newspaper report. The Prime Minister's Office issued a statement in the afternoon saying the CAG has said that there was no loss to the exchequer in the allocation of coal blocks. "With reference to the lead story published in The Times of India today… the prime minister has received a letter from the Comptroller and Auditor General of India… Among other things, the letter clarifies that: In the extant case the details being brought out were observations which are under discussion at a very preliminary stage and do not even constitute our pre-final draft and hence are exceedingly misleading." "This government is looting the country… This government has lost its right to continue in power," said opposition Bharatiya Janata Party leader and Rajya Sabha lawmaker Prakash Javadekar. The incumbent government has been facing several corruption charges which have made it shaky and led to its poor performance during the recent state elections. Political observers feel that even after CAG clarification, the government may still have lots of explaining to do over its controversial policy of allotment instead of auction — the same route that was adopted in the 2G spectrum allocation scam.