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Showing posts with label corruption. Show all posts
Showing posts with label corruption. Show all posts

Tuesday, October 15, 2013

Political Capital - No Implicit Faith Between PM & Ministers:

Published on Sep 30, 2013


All key infra ministers enjoyed PM's full backing in the NDA regime, Senior BJP Leader Arun Shourie says, adding that civil servants do not have faith in ministers today. NDA's ministers had competence in their sectors, but now roads projects are treated like ATMs, he says. "One simply cannot burden exchequer with power subsidies; the user must pay the cost incurred for supplying power," he says, adding that the government must be truthful about what it can't afford.

Thursday, July 21, 2011

My publicity agent

Thu Mar 24 2011, 00:45 hrs


Another scam . . . Inquiry into disinvestment of VSNL” — the papers proclaim. The announcement has been preceded by stories along similar lines in two magazines, a planned build-up to the announcement.


The government does seem to have surrendered its judgment to a bully. And it will be sorry for it. But I will come to that in a moment. The charge is that as the minister of disinvestment in the NDA government, as part of disinvesting government equity in VSNL in 2002, I “gifted” 774 acres of prime land in four cities to the Tatas.

The facts are the exact opposite.

During due diligence of VSNL, it was discovered that the company had been buying land over the years. Technology had changed. It was now possible to provide the same services with infrastructure spread over significantly less land. VSNL, working with advisors, identified 774 acres of land as “surplus”, in the sense that it would not be needed in the future to provide the services for which VSNL had been constituted

Accordingly, in the agreements governing disinvestment, it was provided that whoever won the bid for the company would not get this land. The company was valued by excluding this land. Indeed, the article in the agreement was framed in such extreme terms that at one stage the potential bidders said that they would not go through with the bids at all. The officer who was handling the disinvestment — one of the strongest officers I had the good fortune to work with, P.K. Basu (now agriculture secretary) — told them to go home, and forget the disinvestment. The article would not be diluted one bit, he told them, disinvestment or no disinvestment.

Eventually, they came round and the disinvestment went through. It was one of the most hotly contested cases. On the one side was Reliance — Dhirubhai Ambani was still alive, and was calling the shots. On the other side were the Tatas. The Tatas won, by a whisker. That outcome firmly established the credibility of the disinvestment process. “Even Dhirubhai Ambani could not find out what was going on in your ministry,” observers told us.

The article that Basu and his colleagues incorporated is worth reading. It is a short one. It could have been accessed by anyone from half a dozen sources — but by now it is no surprise that sections of the media will deliberately not read!

Please read the article, and then I will set out its implications. Here it is:

4.7 LAND

(a) (i) The strategic partner confirms that it shall cause and procure the company to hive off or demerge the land into the resulting company pursuant to a scheme of arrangement in terms of the provisions of Section 391 to 394 of the act.

(ii) The strategic partner confirms its understanding that it will transfer all such shares in the resulting company to the government as it may acquire as a consequence of this transaction, that is a minimum of 25 per cent of the resulting company’s issued equity shares or a higher number which shall include shares in the resulting company that it may further acquire as a consequence of any further sale of the equity shares in the company by the government to the strategic partner, prior to the demerger, as part consideration of transfer of the transaction shares and any subsequent sale of the company’s shares by the government to the strategic partner, pursuant to this transaction.

(b) The strategic partner confirms that:

(i) it shall do and cause to be done all and any such acts, matters, deeds and things as are necessary, usual or expedient including voting in favour of the item of business relating to the approval of the scheme of arrangement to implement the hiving off or demerging of the land into the resulting company;

(ii) it shall not directly or indirectly do or cause to be done any acts, matters, deeds or things which may adversely affect or delay the hiving off or demerging of the land into the resulting company.

(c) (i) If for any reason the company cannot hive off or demerge the land into the resulting company then, subject to Article 5.6 (b) (iv) and (xiv) hereto at any time when the company sells or transfers the land or agrees to sell or transfer or otherwise develop the land, the strategic partner shall pay to the government within seven days of the sale or transfer of the land an amount equivalent of 25 per cent of the benefit accruing to the company pursuant to such sale or transfer or otherwise development of the land, as determined by the appraiser, after taking into account any impact under the Income Tax Act, 1961.

(ii) Subsequent to this agreement and the share purchase agreement, if the government sells more than 25 per cent of its equity shareholding in the company to the strategic partner, then the percentage of amount to be paid to the government by the strategic partner on account of sale or transfer or otherwise development of the land under Article 4.7(c)(i) shall increase in proportion to the percentage of such further sale of equity shareholding in the company by the government to the strategic partner. For the purpose of this article the term “transfer” shall include sale, lease, licence, grant of development rights or the parting of physical possession of the land or transfer of any interest, whatsoever, in the land.

The article provides, first of all, that whoever wins the bid — and there could have been no plan to pass on a favour to the Tatas, etc, for no one knew who would win the keenly contested bidding process — shall not get the surplus land. The excess land would be detached from VSNL. A new company would be formed, and the land would be transferred to it.

Second, that the shareholding of this new company would be what the shareholding of VSNL was before disinvestment. That is, the bidder who won would have no share in it at all. The government would have the proportion that it had before disinvestment — about 52 per cent. Employees would have the proportion they had. The rest — about 47 per cent — would be with the general public that held shares of VSNL, the company was listed in both India and the USA. In a word, a government company would be set up. And this government company would acquire the land.

Third, in case such a company could not be formed and the disinvested VSNL decided to part with the land, it would be able to do so only if the government agreed to the proposal. The reason for this was that, even after disinvestment, the government would continue to hold 26 per cent of VSNL’s equity. The sale of land, or disposal of any rights in an asset such as land, can only be done by a special resolution of the board and that resolution cannot go through unless the party that holds 26 per cent of its equity agrees.

Fourth, if that new company could not be formed for some reason, and if the government approved the proposal of VSNL to sell the land, the entire proceeds would be distributed in accordance with the pattern of shareholding that prevailed before disinvestment — that is, the winner would get absolutely nothing; the proceeds would be divided between government, employees and the general public in the proportions in which they held the shares before disinvestment.

There was a fifth factor which was especially important, as it caused the greatest heartburn among potential bidders. This is contained in clause (c) (ii) reproduced above. This clause provided that if government shed more than 25 per cent of the equity it was holding of VSNL, then the share of the proceeds that the disinvested VSNL and the winning bidder would have to pay to government out of any sale or transfer of land or rights in it would increase proportionately.

Sixth, the hands of the prospective bidders were tied tighter by incorporating a very comprehensive definition of “transfer”. The article had used the term “transfer” of land, etc. In the last sentence, it was provided that “for the purpose of this article the term “transfer” shall include sale, lease, licence, grant of development rights or the parting of physical possession of the land or transfer of any interest, whatsoever, in the land.” All proceeds from any form of transfer would go to the government and the original shareholders and not a penny would go to the successful bidder.

Finally, a series of interlocking clauses tied the prospective winner in perpetuity! Privatisation agreements have “call” and “put” options. That is, after a specified period — say, three years — the winner can “call” on the government to sell its residual shares. Similarly, the government has the right to “put” its shares for sale. But in the VSNL agreement, we provided that even if the government parted with all its shares through either option, it would always retain one share — known as “the golden share”; and that by virtue of this single share, all the rights it had in regard to the surplus land would remain with the government!

In other words, the agreement provided that neither the surplus 774 acres nor any right in them whatsoever shall go the bidder who succeeded in winning the contest. So, where does the minister get this notion, parroted by some magazines, that 774 acres were gifted to the Tatas?

“But why was the land not just taken out of VSNL before disinvestment?” the innocent ask. VSNL was a listed company — it was listed both in India and the US. If such a substantial asset was taken away, any shareholder could have gone to court and halted the whole process on the charge that his interests had been harmed. On the other hand, if it was not taken away, the government would be accused of making “priceless” land over to whoever succeeded in winning the bid. Hence a solution was devised: the land would be taken out of VSNL, but the interests of pre-disinvestment shareholders would not be impaired. The land would be turned over to a new company in which the shareholding pattern would be what it was before the disinvestment of VSNL. That was an excellent solution that Basu and his colleagues devised, and it has stood the test of time. The winner did not get the land. The shareholders did not go to court!

“But didn’t VSNL have enormous amounts of cash? Wasn’t this just handed over to the Tatas?” Yes, VSNL had a cash reserve. The fact is that this cash was drawn down before the company was disinvested. The government had VSNL declare a special dividend of 750 per cent! As a result, the winning bid along with this dividend secured for government a P/E ratio of 11 as against the measly 6 at which VSNL shares were trading before disinvestment.

When no other tack is left, critics are led to ask, “But why has the new company not been set up even though nine years have passed since VSNL was disinvested?” The fact is that the government and the winners — the Tatas in this case — tried to work out a solution. The attempts couldn’t get past disagreements. For instance, the Tatas said that as the land did not belong to them, and as it was to be transferred to a company that would in essence be a government company, the government should pay the stamp duty that would be incurred in such transfer. Similarly, as the monopoly of VSNL in regard to international calls had been curtailed by two years, a compensation package was announced by the government. They felt that this was inadequate. As the issues could not be resolved, they proposed that the matter be referred for arbitration. I had no problem with that proposal, but my colleagues in the ministry correctly counselled that as the proposal had revenue implications, we should send it to the finance ministry. That is what was done.

The government changed. Since then, I see from what has appeared in public that the Tatas kept writing to the government requesting the latter to settle the matter. They wrote that there were three alternatives, and that any one of the three would be acceptable to them. The government — the UPA government, that is — kept saying that it was examining the issues and would get back to them. It did not.

Kapil Sibal says this delay has been very costly to the people of India, and that is why he has ordered an inquiry. I say — “Bravo! Excellent!” He should institute an inquiry into the conduct of ministers whose negligence has cost the country so much.

The ministers? P. Chidambaram and Pranab Mukherjee, the finance ministers of the UPA governments! For, remember, the department of disinvestment has been under the finance ministry since the UPA formed its government in 2004. Maybe they are the real targets of this buccaneer? No?

Why else would Kapil this time round entrust the inquiry not just to a handpicked judge but to a handpicked officer working directly under him?! As for me, far from being my inquisitor, Sibal is my publicity agent! He keeps me in the news. And gratis!

The writer was Union minister for telecom and for disinvestment in the NDA government

Tuesday, November 23, 2010

Demand for a JPC into 2G is not right. There was a JPC on Bofors, what happened? ARUN SHOURIE

Demand for a JPC into 2G is not right. There was a JPC on Bofors, what happened?

ARUN SHOURIE BJP leader and former telecom minister

Source: Indian Express

In this Walk the Talk on NDTV 24x7 with The Indian Express Editor-in-Chief Shekhar Gupta, Arun Shourie, telecom minister in the NDA government, takes on A Raja for saying he was only following the first-come-first-served policy of granting licences that was laid down by his predecessors ALL OF us wish that the Prime Minister would exercise his authority more.


Otherwise what is happening is what happened in Raja's case, that under the umbrella of the Prime Minister's good name, all this dacoity was going on. It is not a service to the country for a good person to be merely a good person in his own right



My guest this week is somebody who I say with great pride that I followed in the footsteps of, Mr Arun Shourie. But it seems that you are in tricky company because A Raja also says that he followed in your footsteps as telecom minister.

This kind of nonsense that (Raja) was peddling--that he was only continuing the principles and procedures that we had laid down-this has certainly not washed with the Prime Minister.

Or with the CBI or CAG.

It is also very curious that on the one hand you force him to resign, saying he has done wrong. On the other, you say he is only following procedures. But I have faith that if the media is strong, the courts are strong, one way or the other the truth will come out, as it has come out in this case.

What is the truth in this case?

Was he following in your footsteps or not? And what were your footsteps?

I will give you one instance. He says I followed the first-come-firstserved procedure and he did the same thing and the media is saying the same thing. The fact of the matter is that he did not follow the first-come-first-served method. All this controversy relates to Sep tember-October 2007. In August 2007, there were 167 applications lying in the telecom department and he was not allowing them to be processed, saying the spectrum is short. And then suddenly, he contacts the real estate companies that he was dealing with while he was in the environment ministry (he was environment minister in UPA-I) and tells them, `We are opening shop here. You come and take licences.' They apply. Suddenly he now has spectrum. He announces he will give licence on first-come-first-served basis by the date and time of application re ceived--by October 1, 2007. Ap plications come. Suddenly he says no. I will have the cut-off date not on October 1 but September 25. So everybody who applies in be tween is cut out, without any rea son, without any scrutiny. This is what (D S) Mathur, the secretary, objected to. Then he suddenly changed the basis of first-come first-served. First it was time and date of application. Then he says the time and date at which the con ditions specified in the letter of intent will be fulfilled. This is changed, and one of the condi tions is, as the CAG says, in 41 minutes, bring banker's drafts. It's a press note issued at 2.45 p.m. that by 3.30 p.m., bring a banker's draft of Rs 1,650 crore.

I must say Indian banking system has become very efficient! Electronic. Not only that. It so happens that some firms already have the banker's drafts precisely for that time and it is dated well before the change of conditions that was announced. And the representatives of two of the firms are sitting in the office of Raja's personal assistant. They are not at the central registry where these are to be given. So, suddenly these licences are given. Even this change is not notified till January 2008. All this is happening in October. Then there are conditions which are laid down. Now the CAG has found that of the 122 licences that were given, in the case of 85 licences, those companies did not fulfill the conditions that had been laid down--that is first come, first served. Not only that, it then happened that (Raja) still did not get the type of spectrum allocated to Swan, which he wanted to do, which is one of the favoured companies. So he changes the priority list into lucrative circles--Punjab and Maharashtra--that is first come, first served. One change after the other so as to steer the licences entirely to the companies he was favouring.

Do you get a sense that the CBI knows exactly what has happened?

I have no doubt about it because in some cases the very officers who were handling the material, who were handling these manipulations, have testified to the CBI.

That is to my personal knowledge, because the officers have told me what they have told the CBI. And if I may so, I have conveyed this even before, from the CBI to the higher persons in the gov ernment. Nothing happened.

This govern ment?

The UPA govern ment. The CBI, therefore, knows to such an extent that the officer sir, these compa has said, `Yes sir, these companies' representatives would bring the note which he should sign on a pen drive. It would be put into my computer, a print taken and Raja would sign it.' This detail the CBI knows. CBI knows the identity of the front companies that were used.

The front companies were used to get licences or transfer bribes?

Licences, of course, are well known.

And front companies for money transactions?

Yes, transactions.

Bribe transactions?

I would have no doubt otherwise; you are not doing charity here.

The CBI knows the identity of the critical person who handled the money and it is a mystery to the other officers as to why that particular officer has not been questioned to this day.

He has still not been questioned?

He has still not been questioned.

And if they talk to him now, he might tell them the truth?

I think so. These people are quite ambitious themselves. They just don't do things for their masters.

The CBI's thing is that we have to take the government's permission because he is of such and such rank. But what is the problem?

You go and take the permission and if the government refuses, then that itself will prove the point.

So would you think that if CBI were to ask for permission to go and prosecute this particular officer or officers of that rank, the government wouldn't even dare to deny them permission?

I don't think so. I don't think it's a question of daring. I think now it's a question of slight anger also.

The government is angry?

I think so. I will tell you why.

What happened was there were fisticuffs in Sanchar Bhavan, because these applications had to be given to the Central Registry. To keep the others from giving the applications, musclemen were employed and they were beaten up and there was a lot of scuffle. That very day, the Prime Minister writes to Raja, saying adopt these proce dures and so on and in the end he says, `please examine the question of auctioning the spectrum and determining its price in a fair and transparent manner'.

The Prime Minister himself writes to him?

Yes, he himself writes to him. And what does Raja do? In a letter drafted by a person whom the CBI knows about--Raja can't draft that letter--Raja then implicates Pranab Mukherjee in the thing that `I have kept honourable senior minister Pranab Mukherjee fully informed'. So naturally Mr Pranab Mukherjee would have been incensed.

But Mr Pranab Mukherjee is not a fool. He is a very competent minister.

Absolutely. He is the keystone of not just the government today but of the whole political structure.

Absolutely. He has got goodwill across all sides and respect.

(He is) a very seasoned and mature person and he would not be condoning any of this nonsense.

The second thing that happens is that in the affidavit which was filed by the department of telecom in Raja's defence, it's not Pranab Mukherjee but the Prime Minister who has been implicated. It says, `I kept the Prime Minister informed of all this.' But this is an amazing government that a ministry can file an affidavit in such a controversial case implicating the Prime Minister?

I am actually astonished, because there is a thing called the transaction of business rules. It provides that if there is a matter which involves different ministries, then you must consult them. Secondly, if there is a disagreement, then collective deliberation must be exercised and the decision will be taken by the Cabinet or by the group of ministers as authorised.

In this case, it was a matter of great controversy, not just the affidavit, but even on the auctioning, nonauctioning of spectrum, methods of allocation of licences and to his great credit, Chidambaram as Finance Minister repeatedly insisted on spectrum auctioning. The Law Minister, Mr Bhardwaj, wrote that given the implications of this particular matter, a group of ministers should be set up.

Even Mr Bhardwaj?

But you see, you have to give credit to the person. He took a firm stand, a clear stand on this.

No, I said Mr Bhardwaj because you would expect political flexibility from him--ally ko accommodate karna hai.

Could be, but in this case, he took a clear line under the rules of business, under the transaction of business rules, and Raja completely disregards that. So not just the affidavit, I think they had filed it on their own without consultation with the other departments which are implicated. And certainly the Prime Minister, I would be surprised. I would be surprised on both counts. If the Prime Minister did not know, then it would be a very surprising thing.

You think normally the Prime Minister would have known, since you have been inside the system? You know prime ministers have a way of knowing what's going on.

Yes, there is a delicious incident.

Yashwant Sinha told me that you must remember prime ministers know everything under our system.

And he narrates that when he was finance minister, he got a message from the leader of a state, saying, `please meet me'. Mr Sinha mentioned it to Prime Minister Mr Vajpayee. A month or two later, there was a lunch. Nobody knew about it.

He (Sinha) had gone in an unmarked car. Lunch was over and this person handed him an envelope at the end of the lunch. Sinha put it in his pocket, came back and when he opened it, it was about some cases the person was involved in or the others were involved in and these were arguments as to why these cases do not merit consideration. So when he met Mr Vajpayee, he told him `unhone yeh kaha, maine yeh kaha'. Atalji kept listening, and then said, "aur woh lifafa (and that envelope)?" Sinha said he had not mentioned the lifafa. He had forgotten about it, but the Prime Minister knew. And he narrates several such instances.

But now you think the Prime Minister had also had it?

Yes, I think there is such brazenness in this and the CAG's report is quite well-documented and apart from the CAG, the facts are there.

And he is not just implicating Arun Shourie or Pramod Mahajan--we are nobody, but Pranab Mukherjee one day, the Prime Minister one day.

Only Sonia Gandhi is left?

Sonia Gandhi se to darna padta hai.

Raja talks about following firstcome first-served. But he says he (Shourie) also followed an old price discovered spectrum and I also did that.

In 2001, tele-density in India was 3.8 per cent of the population. Today, it is nearly 50 per cent. At that time, spectrum was not short. Mobile telephony had just come. To encourage that, there was a policy.

The whole sector had collapsed because of the fixed licence fee. So there was a transition to 1999.

Okay, you don't pay the fixed fee, you pay a share of the revenue. It saved the sector and led to growth.

At that time, that price was discovered. In 2003, if you look at the figures, there was hardly any growth, 3.8 went to about 5 per cent (teledensity). Now, when you have this enormous growth, to say that this asset costs only that much, and a very interesting point also, the licences which were given were not being used in some parts of the country, northeast, I think Orissa or West Bengal, one of the eastern states and Kashmir also. So we said, we should move towards auctioning. We should separate licencing from spectrum. In the meantime, don't hold up this process, go with the 2001 price. All this was done not by me alone, but by the group of ministers, by the cabinet.

But he says that I have raised so much money from my 3G auction, nobody has done it.

Because he has been forced to auction it, otherwise he would have done the 2G thing again in 3G.

And that's when Pranab Mukherjee took charge.

He had to. In the terms of reference of the group of ministers, the pricing of spectrum was included and Raja insisted this should be taken out. And somehow it was taken out and it could not have been done under our system without the knowledge of the Prime Minister. Of course, the Prime Minister has many other big things to do and was maybe not paying any attention to this but this is the kind of thing Raja's people will now argue in court.

How good is the CBI? How good is our system for catching this?

The CBI is quite competent to do these things, but unfortunately it has lost the will to do it, because it has been manipulated by politicians.

Why is your party insisting on JPC? Is that a better way of doing it?

With great respect to the Opposition, I think this is not the right demand at all. There was a JPC on Harshad Mehta, what happened?

Nothing. Bofors, nothing happened.

Pardon me for being cynical.

Look at the BJP. Look at the state governments the BJP is running. Look at Jharkhand, look at Karnataka, they are among two of the most corrupt governments in India.

Well, there is a great homogenisation of political parties. I think that's a great problem. If you go to Karnataka today and say what does X or Y party stand for, they stand for the same things. So, one should differentiate oneself by one's conduct. I believe idealism is the practical politics today.

So you think overall, the action taken in the Raja case is a cause for some cheer?

Yes, I think in three-four cases-in Adarsh Society, in Raja's case, in the Commowealth Games.

Once again, a good beginning, but we must once begin and then persevere. I am delighted that action has been taken. All of us wish that the Prime Minister would exercise his authority more. Otherwise what is happening is what happened in Raja's case, that under the umbrella of the Prime Minister's good name, all this dacoity was going on. It is not a service to the country for a good person to be merely a good person in his own right.

Arun, always a privilege to share a walk the talk with you and a much bigger privilege to walk in your steps.



Transcribed by Sutirtha Sanyal

Wednesday, May 28, 2008

Arun Shourie on the Mitrokhin Archives OF FOREIGN AFFAIRS

Part-I

Standard Operating Procedure
The weekly organ of the CPI(M), People's Democracy, September 2005, declaims, ''The Mitrokhin balloon of lies has been well burst recently. The statement of the secretary of the Bengal unit of the CPI(M), Anil Biswas on September 21 may well perhaps be the last nail on the coffin of the 'archival misdemeanour'. Anil Biswas told the media at the Muzaffar Ahmad Bhavan that 'after having procured the so-called Mitrokhin archives and poring over it, we find no reference of the kind alleged or otherwise, to the late Promode Dasgupta'.''

There are just two short chapters in this book about India. On the very second page of the very first of these, we read, ''As KGB operations in India expanded during the 1950s and 1960s, the Centre (that is, the KGB headquarters in Moscow ) seems to have discovered the extent of IB's previous penetration of the CPI. According to a KGB report, an investigation into Promode Das Gupta, who became secretary of the Bengal Communist Party in 1959, concluded that he had been recruited by the IB in 1947 . Further significant IB penetrations were discovered in the Kerala and Madras parties...''

Did the ''poring over'' not reach even the second page? But this is standard procedure for Marxists — lie outright!

In the full confidence that no one will look up the original material.

The second, adopted this time round by the Congress too, is to just dismiss revelations. Extracts from The Mitrokhin Archive had but to appear in the press, and they, and their favoured commentators pronounced, ''No evidence...,'' ''Fiction...,'' ''An author in search of lies.'' And simultaneously, ''There is nothing new.... These things have been well known for long!'' Well known for long, but require new proof!

The third device also has been on display this time round: paste motives on all concerned. A favourite of Marxists, it has been deployed even by ''intelligence experts'' this time. One of them writes that the book has three aims. The first, he says, is ''To discredit the present Russian leadership.'' Presumably this is accomplished by indirection: as Putin is known to have been in the KGB, as it is well known that he has appointed his former colleagues from the KGB to vital posts across Russia, pointing to what the KGB used to be doing, tarnishes ''the present Russian leadership''. Second, our expert says, the purpose of the Mitrokhin account is ''to drive a wedge between the present leaderships of Russia and India .'' And, third, the British secret service has always been hostile to leaders of the Labour Party in the UK , this has been a plot to discredit the Labour Government and leaders of Britain.

Assume all this to be true, does it amount to a reason for India not to examine what the disclosures spell for our national security and governance? The fourth device is to smear whoever has brought out facts that are inconvenient. ''A former low-grade clerk of the KGB archives,'' they write about Mitrokhin, he was not the head of KGB archives. Assume that to be true: low-grade clerks are as useful sources of information as heads of departments! Mitrokhin was an incompetent officer, they say — if he had been any good at field work, he would not have been assigned to a backroom tending old records. But the point is whether, having been relegated to backrooms, he had access to thoe tell-tale records. Just one who ''stole'' those ''clandestinely obtained'' documents, they say. But does that suggest that the records he transcribed were genuine and valuable or does that establish that they were fakes?!

As it isn't just Vasili Mitrokhin who was involved in this project, the British professor, Christopher Andrew who collaborated in writing and editing the volumes also comes in for the standard treatment. The professor, we are told, ''was alleged to have been embedded in the intelligence agencies.'' He becomes ''the ever-obliging Christopher Andrew.'' The CPI(M) mouthpiece, People's Democracy, is even more elaborate: ''No wonder, these scions (those running the 'corporate media' here in India) have now picked up the Soviet defector's ramblings, which have been put together in a fashion in a book by an English author who is not only not known for his scholarship but also just not known in the academe as a practicing historian.'' That phrase is literally standard issue.

When ''Why?,'' does not work, ask, ''Why now?'' That is the standard device since Lenin's time! And this time too we have had it in full display: Mitrokhin defected in 1992, why is this book being released now, in 2005? demands one of these tele-Communists. In fact, the six cases full of notes that were brought over were examined threadbare for years, and the first volume was printed in 1999! But again, standard.

In truth, there never is a right time to talk the truth about them! Communist journals in India used to be full of glowing accounts about the industrial excellence of East Germany and Czechoslovakia, about the achievements of Ceausescu and his Romania, about the unequalled might of the Soviet Union; about how unemployment had been abolished, how ills that plagued capitalist societies — divorce, crime — were non-existent in Communist countries. If before 1989 you questioned the claims, you were denounced, ''Do you think one-third of humanity is wrong, and you alone are right?'' And after 1989, when the entire Soviet bloc collapsed?

True to form, this time also we read in the CPI(M)'s mouthpiece, People's Democracy, ''The principal reason why this cheap thriller (the phrase for the Mitrokhin record) is being played out in the corporate media now more than ever is not difficult to guess. The recent resurgence of the communists, socialists, and the Left across the globe has certainly made the imperialists press the panic button.... In India, the presence and growth of the CPI(M) has long since been a worry for the ruling classes and their friends and patrons out in the West. The corporate media has, as a willing handmaiden, been periodically albeit regularly feeding out stories maligning the Party and its leadership.''

Facts about Mitrokhin's records:
To gauge the worth of these denunciations, recall that Vasili Mitrokhin defected in 1992. Between 1992 and 1999, his notes were subjected to minute and most careful examination by various levels of the British Government. They scrutinized the information, they examined who to engage as co-author, they weighed how the material ought to be published. Questions such as these were considered by senior civil servants, intelligence agencies, by an interdepartmental committee, by Ministers, by two Prime Ministers. The way the material was handled was subsequently debated in the House of Commons and was examined threadbare by the Intelligence and Security Committee of the UK Parliament. The Committee was tasked in October 1999 to examine whether it had been handled well. The Parliamentary Committee submitted a detailed report in June 2000. This report was debated extensively.

The first volume of the present work was published in 1999. No one in India made the kinds of allegations that are being hurled now. While we are being fed insinuations to belittle Mitrokhin; while we are being fed the line, for instance, that the entire project has been a conspiracy of British intelligence agencies to discredit British Labour Party leaders, this is what Jack Straw, then Home Secretary and currently the Foreign Secretary of the Labour Government - to tarnish whom we are being told this plot has been engineered — said about Mitrokhin. He told the House of Commons on 21 October, 1999,

''....I entirely endorse what the right hon. Gentleman says about Mr. Mitrokhin's courage. It required huge courage to do what he did. I do not doubt that a great many other people working in the KGB during that long period were pretty disgusted with the work that they were asked to engage in, but very few of them had the courage and tenacity to work, as Mr. Mitrokhin did, to record the huge amount of what was passing across his desk and then to make himself known to intelligence agents in Moscow and have himself and his family brought out at considerable risk. I pay tribute to his courage and acknowledge the benefits that the whole of the West has received as a result of his disclosures''

Similarly, the Parliamentary Committee observed, ''The Committee, during the course of the inquiry, had the opportunity to meet Vasili Mitrokhin. The Committee believes that he is a man of remarkable commitment and courage, who risked imprisonment or death in his determination that the truth should be told about the real nature of the KGB and their activities, which he believed were betraying the interests of his own country and people. He succeeded in this and we wish to record our admiration for his achievement....'' But in India, ''a former low-grade clerk,'' one who ''stole documents,'' one who was so incompetent that he had to be consigned to a backroom dusting archives....

Similarly, while in India the account has been dismissed as ''vague'', ''complete fabrication,'' ''fiction'', ''a spy thriller,'' Britain's Parliamentary Committee had this to say about the value of the material that Mitrokhin had brought over, and on which the Mitrokhin-Andrew volumes are based, ''We are aware that the Western intelligence communities are extremely grateful for Mr Mitrokhin's material, which has shown the degree to which the KGB influenced and penetrated official organizations. Historians also find The Mitrokhin Archive of tremendous value, as it gives a real insight into the KGB's work and the persecution of dissidents.''

But in India , to use Lenin's phrase, ''a shroud of angry words to cover inconvenient facts''! The one question we should be asking, is not being asked: Indian and British intelligence agencies have had close relations; was the material offered to us, as it was offered to other agencies? What did we do about it?

Instead, all sorts of red-herrings are being thrown in the way. Why was this unknown professor, why was this person who was ''alleged to have been embedded in intelligence agencies,'' why was he of all persons chosen as co-author? It just so happens that this question too was examined by the UK Parliamentary Committee. It concluded that in Professor Christopher Andrew of Cambridge University, just the right man had been chosen for the project. Andrews had previously worked on the Gordievsky books. He had been security cleared and had signed the Official Secrets Act, the Committee noted. ''The Committee regards Professor Andrews as a distinguished academic who has specialized in the espionage field,'' the report stated. ''He was a good choice to undertake this work.'' But in India....



Part-II
A society and state in denial In his justly famous memoir, Encounters with Lenin, (Oxford University press, 1968) Nikolay Vladislavovich Volsky, who wrote under the pen-name Valentinov, narrates what is for Communists the hadis in such matters. He recounts what Lenin said to him: ''Marxism is a monolith conception of the world, it does not toler ate dilution and vulgarisation by means of various insertions and additions. Plekhanov once said to me about a critic of Marxism (I've forgotten his name) 'First let's stick the convict's badge on him, and then after that we'll examine this case.' And I think we must stick the convict's badge, on anyone and everyone who tries to undermine Marxism, even if we don't go on to examine his case. That's how every sound revolutionary should react.''

As that is the operating procedure for the much lesser offence — that of mere ''dilution'' of the doctrine — you can imagine how much greater must be the zeal with which the ''convict's badge'' is stuck on one guilty of the much greater crime — the crime of revealing the truth about them.

In a word, we should see that the put-on derision with which Communists and the Congress spokesmen have been trying to bury Mitrokhin's records is just standard procedure, and not let it deflect us from the revelations. For there can be no doubt at all that, as far as India is concerned — our governance, our national security — Mitrokhin's records point to the gravest danger. Remember that the two brief chapters in this volume are but the distillation of trunk-loads of scrupulous notes taken down over twelve years. Even this briefest of brief accounts speaks of penetration by foreign agencies of departments of our Government, including intelligence agencies; of Mrs. Indira Gandhi's coterie; it speaks of the foreign agency's intervention in what we regard as our hallmark, our ''free and fair'' elections; it speaks of the confidence with which the agency maneuvered to build up preferred successors to Prime Ministers; it speaks of funding of Left parties, of trade unions, of the Congress itself; it speaks of how one of the prides of that period — Indo-Soviet trade — became such a handy channel for secret funds; it speaks of infiltration of our other hallmark, our ''free and fair'' media — it recounts the ease with which the KGB and the CIA were able to plant stories; it speaks of the ease with which, and the paltry sums for which the KGB was able to organize ''spontaneous demonstrations'' by Muslims....

Consider just a single paragraph from the chapter: ''Oleg Kalugin, who became head of FCD Directorate K (Counterintelligence) in 1973, remembers India as 'a model of KGB infiltration of a Third World Government': We had scores of sources throughout the Indian Government — in intelligence, counterintelligence, the Defence and Foreign Ministries, and the police.' In 1978, Directorate K, whose responsibilities included the penetration of foreign intelligence and security agencies, was running, through Line KR in the Indian residencies, over thirty agents — ten of whom were Indian intelligence officers. Kalugin recalls one occasion on which Andropov personally turned down an offer from an Indian minister to provide information in return for $ 50,000 on the grounds that the KGB was already well supplied with material from the Indian Foreign and Defence Ministries: 'It seemed like the entire country was for sale; the KGB — and the CIA — had deeply penetrated the Indian Government. After a while neither side entrusted sensitive information to the Indians, realising that their enemy would know all about it the next day.''

Even if we have become so immune to shame by now that we are not led to hang our heads on reading a passage such as this, at least we should consider what that kind of information implies for our national security. Moreover, as the KGB had such ingress into our governmental structures, agencies of other countries too would have had no greater difficulty in suborning persons and influencing policies and decisions. And can that surprise us? When every corporate house is able to plant stories, what difficulty would a foreign government face? And remember, that passage is about the state of affairs thirty years ago. Since then, there has been a precipitate deterioration in both the quality and integrity of persons in public life as well as in the civil service.

For none of the things that Mitrokhin records is the KGB is to blame. That agency was just doing its job for its country. The question is, what were we doing for our country? The question is, what are we to now do to protect our interest? Recall what the British Parliamentary Committee reported about the worth of Mitrokhin's disclosures, and how invaluable these had been to agencies of other countries to neutralise dangers those countries faced — ''Western intelligence communities are extremely grateful for Mr. Mitrokhin's material...,'' ''a case of exceptional counter-intelligence significance, not only illuminating past KGB activity against Western countries but also promising to nullify many of Russia's current assets''.... ''the most detailed and extensive pool of CI (counter-intelligence) ever received by the FBI''.... ''the biggest CI bonanza of the postwar period'' — contrast these acknowledgments, contrast the way agencies of other countries put the material to work, contrast all that with the resolute shutting of eyes in India.

Several lessons leap out from this episode. Notice first what the Communists, their megaphones and their current dependents would have been blaring had even one-thousandth of such disclosures come out about some organization or individual affiliated to the RSS. Two points arise from that contrast. First, is such penetration a threat to our national security if it relates to the RSS and not a threat when it relates to the Communists or the Congress? Second, where do the disclosures leave the high moral ground that the Left appropriates?

It is entirely true that just because someone is named by a foreign intelligence agency or agent, that does not establish him to have been a spy. But surely the right response would be to inquire, at least to find out whether British agencies had offered the information to us and we had failed to follow it up. Nor is this a one-off. Professor Patrick Moynihan was one of the most respected of American academics. He was appointed Ambassador to India during Mrs. Indira Gandhi's time. As Mrs. Gandhi's speeches about the ''foreign hand'' — that always meant the CIA — became incessant, Moynihan commenced an inquiry into what Americans had been doing. In his memoir of the period he wrote that he came across two occasions on which the CIA had provided funds to counter Communist candidates. He wrote, ''Both times the money was given to the Congress Party which had asked for it. Once it was given to Mrs. Gandhi herself, who was then a party official.'' His book was published in the US as well as in India . If what he had said was untrue, what could be a clearer occasion for a defamation case? But absolutely nothing of the kind was done. Just the standard operating procedure: denounce, smear, bury. When the Government so resolutely refuses to make any inquiries, whether the account is of Moynihan or Mitrokhin, what should one conclude?

In the case of the Communists, disclosures about their having received money are the least of the matter — and it does seem to me that the Mitrokhin figures are gross understatements, as if some few zeros have got left out. The figures of Indo-Soviet trade, the quantum of Indian purchases of Soviet arms, and what was said in those days of the sudden wealth of the private parties through whom the Soviets insisted these transactions be made, would suggest transfers of much, much larger amounts. But in their case, money is the least of the matter. Their entire outlook, their ''line'' has been foreign, it has been derived from, to use Mao's phrase, ''the dung-heap of textbooks written abroad.'' And, as has been documented time and again, from instructions received from abroad.

As a result, working for the interest of heir ''international movement'', specifically for the ''fortresses'' of that ''movement'' — the USSR, China — is in their very genes. They traduced Gandhiji and the freedom movement from 1939 for not taking advantage of Britain's difficulties — the war in Europe is just an ''Imperialist war'', they shouted; Gandhi is guilty of collaborating with the Imperialists by not launching a movement to liberate India when Britain was caught defending itself against Hitler. Hitler was, of course, on the side of history then as he had signed a non-aggression pact with Stalin.

Then they switched suddenly — the ''Imperialist war'' became ''People's war'', not because India 's interests had changed but because Hitler had attacked the Soviet Union. They now denounced Gandhi for launching the Quit India Movement! And there was no doubt about the reason: the Soviet Union is ''The Only Fatherland'' for us, they proudly announced in their resolutions, and, in accordance with this new ''assessment'', they entered into a secret understanding with the British Government in India to sabotage the Quit India Movement. In 1947, apart from the Muslim League, they were the only party that advocated the vivisection of India. When India became independent, they declared that India was in fact still under the tutelage of capitalist, Imperial powers, and so its Government must be overthrown.

In 1962, their thesis was that India is the aggressor, not China — which, by definition, could never launch aggression as it was a ''workers' State''. In 1975, they — they, we now see, at the goading of their KGB minders - were all for the Emergency. When China exploded its atomic bomb, they proclaimed it to be a great triumph — a fitting answer to the Imperialists, a decisive step that breaks the monopoly of Imperialist powers. When India went in for atomic weapons, they denounced it — a blow at world peace!

The Mitrokhin disclosures are particularly disturbing for them as they remind us once more, among other ''well known'' facts, of how they and their fellow-travelers, unable to work their Revolution, worked at securing the same goal by infiltration — of the Congress; a sort of ''Revolution-by-stealth''. This was the famous ''Kumarmangalam thesis'' that, as Mitrokhin reports, got such enthusiastic assistance from the KGB. But surely that is not just a reminder of what is past. The Communists have never been closer to attaining that goal as they are today — what with a supine Congress so completely at their mercy.

Nor is it just that the Congress is so completely at their mercy. As Swapan Dasgupta pointed out the other day, the danger is twice compounded — the Congress is completely dependent on the Communists, and the Communists are completely compromised. The Communists have been busy denouncing Mitrokhin's revelations. But as Dasgupta points out, there are several other caches that are coming to light. He draws attention to the fact that the private diaries of a former Soviet Ambassador to India, I. A. Benediktov can now be accessed on the Internet — at the website of the Cold War International History Project of the Woodrow Wilson Centre, Washington, DC ( http://wilsoncentre.org) In these diaries, Benediktov records plaintive pleas of Bhupesh Gupta, Secretary, National Council of CPI, for funds. He records Gupta's plea that, with Ajoy Ghosh through whom the monies used to be received and disbursed, gone, Namboodripad should be allowed to be brought in to handle funds from the Soviets.

A little later, during China's invasion of India in 1962, Benediktov records Namboodripad's fevered appeals to the Soviets that they abandon their support for India, and the sycophantic gratitude Namboodripad expresses for an editorial that Pravda has carried that suggests a shift away from India. Namboodripad asks Benediktov to inform the Central Committee of the Communist Party of the Soviet Union ''that the publication of this article and the advice of the CPSU contained in this letter of the CC CPSU, truly will help our party get out of the extremely difficult position it is now in. Before this, there were moments when we felt ourselves to be simply helpless, but now the party will be able to help this situation. We are grateful to the CC CPSU for this help. You can transmit this personally from me and from Comrade B Gupta.'' In a word, the Congress is completely in the hands of the Communists, and the Communists can be ''motivated'' by so many — those who gave them assistance and guidance, as well as those who may reveal what they got, and with how much gratitude they received it.

So, first of all we must see through their invective. As the Government is in their grip; as, given what Mitrokhin records about infiltration into Mrs. Indira Gandhi's circle, of its own accord the Government itself will not want to pursue the matter, inside Parliament and outside, citizens must put pressure on the Government to institute a full and public inquiry. It must be made to request the British Government for access to Mitrokhin's records, and it must be made to make public what those records reveal about India. But we do not have to go on waiting for the Government to do something in the matter. Papers of several senior Soviet officials are now in various archives. We should form teams of scholars on our own and scrutinize that heap of material for entries that pertain to India.

These are important steps, and they must be taken. But even they are but tiny ancillaries to the main debility we must overcome. The reaction in India, that is the non-reaction to The Mitrokhin Archive is but a symptom — of a state and society in denial. On every matter — what Pakistan was doing in Punjab; what it has been doing in Kashmir as well as its current stratagem to acquire it ''peacefully''; infiltration from Bangladesh; jihadi curricula; the threat Naxalites pose and their links in Bihar, in Andhra; the threat ULFA poses and its links in Assam; the militarization of Tibet, the modernization of Chinese defence forces and their deadly implications for India; the opportunity that the breakdown of governance in vast tracts like Bihar spells for the country's enemies — on each and every matter, our society and state just do not want to face the facts.

The media must see how it assists in this shutting of eyes. By the current ''your reaction journalism'' for one. Mitrokhin's volume is published. It goes to someone from the BJP, ''Sir, this new book by this Russian alleges..., what is your reaction? In brief.'' And then to a Communist, ''Sir, this new book by this Russian alleges..., what is your reaction?'' Both sides covered. Balanced story on air. End of matter. This is the condition that we have to reverse, and disclosures of the Mitrokhin kind are yet another occasion when we can commence to do so. On each of these questions, at each of these turns, induce readers, compel governments to face the facts, and thereby take steps that would save the country.

(Concluded)

An Extreme Case is not an Exception


Arun Shourie

That an area as large as Bihar should sink into quicksand is alarming enough by itself. But one of our problems is that collapse in Bihar no longer shakes us: "O, that is Bihar," we shrug.

Bihar is an extreme case, yes. But the point about an extreme case is that it is but one end of a continuum. Bihar is far from being an exception. Even the most prosperous states today exhibit the same symptoms. Not just Bihar, but Punjab too is having difficulty paying just the salaries of government staff. Not just Bihar, but state after state -- Rajasthan is the example of the month -- has defaulted on the repayments it has to make to the Centre. In Assam�s case, all financial transactions had to be halted, and the treasury had to be closed last week, as the state had no funds to meet even the day�s liabilities. It isn�t just that almost all of plan expenditure of Bihar is now financed through central funds, that is so in the case of most states: Rakesh Mohan, the director of the NCAER, draws attention to a telling figure -- as recently as the Sixth Plan, balances from current revenues financed 40 per cent of state plans, in the Eighth Plan their contribution was zero, today it is a substantial negative. It isn�t just that state enterprises in Bihar are in a woeful condition, they are in more or less that condition across the country: another figure that Rakesh Mohan mentions -- state enterprises were projected to contribute Rs 4,000 crore to the financing of the Eighth Plan, their actual contribution was minus Rs 2,723 crore.

All sorts of devices have been contrived by the Centre and states to camouflage defaults by state governments, all sorts of devices have been fabricated by states to divert central funds meant for capital expenditure to pay wages and salaries. A senior functionary was educating me the other day to the mystery behind plan projects remaining incomplete for years and years on end in state after state. There is more than lethargy, he explained. Under our system of accounting, so long as the project is a continuing one, salaries and wages of the staff working on it can be paid out of plan funds; once it is completed, these have to be paid out of the state�s own funds. Unable to pay even salary and wage bills of its employees, state after state keeps that last mile of the road incomplete...

And finances themselves are but a symptom. Entire systems have fallen apart. A former deputy comptroller and auditor general, C.B. Kumar, points out that of the 992 state government companies, the accounts of 783 companies are in arrears -- up to 10 years. In the case of many of them, accounts have not been finalised for even one year since their inception.

And the finances of states, the evaporation of control and supervision mechanisms in state owned companies -- these too are but symptoms. The malaise extends far beyond states, far beyond governments. "Non-performing assets" -- a euphemism to cover up moneys which have been given, handed out on collateral considerations -- now exceed Rs 43,000 crore: that feat has been accomplished not by state governments but by our "commercial" banks. The companies that have vanished with over Rs 20,000 crore belonging to small depositors are not government companies, they are companies floated by private entrepreneurs. Similarly, while the securities scam showed up the degree of morality and vigilance in our banks and financial institutions, could it have remained undetected if a profession wholly outside the state structure -- chartered accountants -- had been doing its job?

In a word, unless we wake up, Bihar is not just an extreme case, it is the future. And the condition to which Pakistan has sunk is a live warning of what happens when such problems are neglected.

Everything else points to the same urgency. Time does not stop just because we are preoccupied with our problems: we talk of the "21st century;" it is five weeks away. The world does not stop because we are busy battling the next caste: technologies continue to replace each other every two-three years; per capita income in China is already double that of India, but with China growing at 10-11 per cent, and us stuck at 6 per cent, the gap between us and them doubles every 14 years -- and the per capita income is just an indicator: military capability, and much else is subsumed in it.

Nor do our problems abate because we are busy sorting out our politics. In the last three-and-a-half years when our politicians were busy bringing down and installing governments, our population increased by over five crore. Even in the six months between the ouster of the Vajpayee government and the installation of the present Vajpayee government, our numbers would have increased by over 70 lakh. We must, therefore, act, as the Buddha would say, "with the urgency of a man whose hair is on fire". The allied point is just as obvious: there is no discord on these issues. Indeed, I believe there is consensus on almost all the issues which are at all within the realm of the possible. When liberalisation was launched, how the critics lampooned it. But where they were in power, those very persons and their parties were taking pride in proceeding on that route even faster than the central government. Similarly, when the critics acquired office at the Centre, they continued those very policies.

That is a large part of the problem today: on almost every practicable matter there is consensus on what should be done, everyone also sees that those steps should be taken forthwith, but when one party takes them, the other shouts and screams, and puts obstacles. So that nothing is allowed to proceed -- except by fits and starts. The same danger lurks today. The economic decisions which will be taken now are ones that carry forward the same process which successive governments have been furthering for a decade. But because this government will be announcing those policies, others will stall them.

There is a conviction -- which all parties need to outgrow -- that because one is in Opposition, one�s job is to oppose, to choke whatever whoever is in government is trying to do. Precisely because it does not have a better idea on the matter, the party out of office feels compelled to contrive differences. Often, a completely unrelated issue is made the occasion for blocking everything. Notice the minatory statements which Congress leaders have been making about Rajiv�s name in the Bofors� chargesheet.

Assume for a moment that there is ground for a genuine difference of opinion on the matter -- I do not see any ground either in law or fact, but assume that there is. How does that difference on this particular matter justify throttling legislation on, say, economic reforms? Even countries deal with each other on some issues in spite of there being sharp differences on other issues. Indeed, many who will today be arguing -- within the Congress, say -- against cooperating with the government on any issue are ones who, when it comes to Pakistan, are most energetic in arguing that we must keep identifying areas on which we can engage it in joint action in spite of what it is doing in Kashmir, and the rest. But when it comes to cooperating with the government of their own country, even when it seeks to further policies they had themselves initiated, Congressmen will think it perfectly in order that they hold back till it interferes in the judicial process and has a document which is before the courts altered in the way they specify. As all parties are in office somewhere or the other in the country, and as all of them are therefore disabled by such conceptions of what the proper role for an Opposition is, all have cause to revise their conduct. The cure liable to be more effective is for people to be alert, notice who is stalling essential legislation or policies, and for what reason, and punish him accordingly.

Governments too would do well to change their ways. At least in five respects. All too often, they lose interest in a remedy the moment it has been enacted. Mr N. Vittal, the chief vigilance commissioner, gives a telling example. In 1988, Parliament passed the Benami Transactions (Prohibition) Act. It was acclaimed to be a decisive step in tackling corruption -- indeed, so urgent and vital were its provisions acclaimed to be that they were first introduced by way of an Ordinance. Clause 5 of the Act specified that a procedure would be prescribed for acquiring property under the Act. Eleven years have gone by, no procedure has been prescribed. Governments have forgotten all about the Act. And not just governments: the other day when I referred to the Act and its fate in the Rajya Sabha, it was evident that MPs too had not bothered to check up on what they had passed. The first point therefore is: follow through on what you get through Parliament, follow through on the schemes you launch.

The second lesson, equally elementary, is about existing institutions. Every government feels impelled to launch new schemes, to set up new institutions. But the need today is to energise existing institutions. It is good that the government will be introducing legislation to set up the Lok Pal: the bill has been in the works for 30 years, and this will be the seventh version of the bill. So, it is good that at last the law will be passed, and the institution will be set up. But just as important is to activate the Lok Ayuktas: in state after state, they have been rendered moribund. Why not call a conference of existing and past Lok Ayuktas, garner their proposals to make the institution functional, and create public opinion for those changes to be enacted? Similarly, I was astonished to learn the other day that the comptroller and auditor general has a staff of 20,000 persons. They produce over a hundred audit reports every year. These run into 15,000 to 20,000 pages. They are packed with details -- often, as we have seen in the case of Bihar, with details of the most alarming kind. But can any one recall a single consequence which has followed as a result of these prodigious labours? The cure would not be to set up yet another institution, but to get together with present and past CAGs and take steps which would make the work of this institution fruitful. The third lesson is about the new institutions we set up. Unable to improve existing institutions, we set up some new one. Unable to get existing courts to speed up, we set up special courts, unable to get states to act reasonably on sharing river waters we enact the inter-state river water disputes law. But the manner we provide for the new institution to function is exactly the manner which has paralysed the old institution. The procedural regulations that special courts must adhere by are exactly the same as the regulations which clog existing courts. The personnel who man the inter-state river dispute tribunals are just the same as the ones that man existing courts: they bring to their new task the same approach, the same fixation on legalisms, on the date of this notification as against that one which hobble our courts. For the new institution to be different, its personnel, the procedural rules that are to govern its functioning, its entire ethos have to be radically different.

Fourth, the solutions must be on an altogether different scale, they must be of an altogether different kind than the ones to which we naturally gravitate. The backlog in courts? As a great concession we agree to the setting up of a dozen courts. But the Chief Justice was mentioning the other day that the requests which are pending for additional courts already total over 4,500. Setting up a dozen more courts -- and that too after years and years of the files going up and down -- is as good as doing nothing. Similarly, to get the inter-state water disputes machinery out of the current rut, we need to man the tribunals with persons whose entire approach will be different: who will craft design solutions rather than pronounce awards that hinge on legalisms.

And when we do alight on a solution, as Montek Ahluwalia with his vast experience points out, we must not look upon it as set in stone. That is the fifth lesson. As new technology beckoned, a new telecom policy was announced in 1994. But technology changed so fast that a newer policy was required by 1998. The steps which have been taken under it have already had to be altered twice. But technology is continuing to evolve at a dizzying pace: the technology to transmit voice over Internet with distortion is almost at hand; you will soon be able, therefore, to talk to persons overseas at the cost of a local call; that will devastate the finances of existing long distance operators. And so we can be certain that an entirely new telecom policy will be required three-four years from now. If we hold up that new policy on the old supposition that the existing policy had been announced just a short while ago, or if allegation-mongering inhibits governments from attempting new formulations, we will be enlarging the gap between us and the rest of the world.

Hence: when you pass a law, when you set up an institution, look back and see how it is working; instead of setting up new institutions, where possible energize existing ones; when you set up new institutions, ensure that their personnel, their operating procedures, their entire thinking is new; think anew repeatedly, and each time at a speed which will, at the least, match the progress of technology.

The Asian Age
November 12 1999

An Extreme Case is not an Exception

Arun Shourie

That an area as large as Bihar should sink into quicksand is alarming enough by itself. But one of our problems is that collapse in Bihar no longer shakes us: "O, that is Bihar," we shrug.

Bihar is an extreme case, yes. But the point about an extreme case is that it is but one end of a continuum. Bihar is far from being an exception. Even the most prosperous states today exhibit the same symptoms. Not just Bihar, but Punjab too is having difficulty paying just the salaries of government staff. Not just Bihar, but state after state -- Rajasthan is the example of the month -- has defaulted on the repayments it has to make to the Centre. In Assam�s case, all financial transactions had to be halted, and the treasury had to be closed last week, as the state had no funds to meet even the day�s liabilities. It isn�t just that almost all of plan expenditure of Bihar is now financed through central funds, that is so in the case of most states: Rakesh Mohan, the director of the NCAER, draws attention to a telling figure -- as recently as the Sixth Plan, balances from current revenues financed 40 per cent of state plans, in the Eighth Plan their contribution was zero, today it is a substantial negative. It isn�t just that state enterprises in Bihar are in a woeful condition, they are in more or less that condition across the country: another figure that Rakesh Mohan mentions -- state enterprises were projected to contribute Rs 4,000 crore to the financing of the Eighth Plan, their actual contribution was minus Rs 2,723 crore.

All sorts of devices have been contrived by the Centre and states to camouflage defaults by state governments, all sorts of devices have been fabricated by states to divert central funds meant for capital expenditure to pay wages and salaries. A senior functionary was educating me the other day to the mystery behind plan projects remaining incomplete for years and years on end in state after state. There is more than lethargy, he explained. Under our system of accounting, so long as the project is a continuing one, salaries and wages of the staff working on it can be paid out of plan funds; once it is completed, these have to be paid out of the state�s own funds. Unable to pay even salary and wage bills of its employees, state after state keeps that last mile of the road incomplete...

And finances themselves are but a symptom. Entire systems have fallen apart. A former deputy comptroller and auditor general, C.B. Kumar, points out that of the 992 state government companies, the accounts of 783 companies are in arrears -- up to 10 years. In the case of many of them, accounts have not been finalised for even one year since their inception.

And the finances of states, the evaporation of control and supervision mechanisms in state owned companies -- these too are but symptoms. The malaise extends far beyond states, far beyond governments. "Non-performing assets" -- a euphemism to cover up moneys which have been given, handed out on collateral considerations -- now exceed Rs 43,000 crore: that feat has been accomplished not by state governments but by our "commercial" banks. The companies that have vanished with over Rs 20,000 crore belonging to small depositors are not government companies, they are companies floated by private entrepreneurs. Similarly, while the securities scam showed up the degree of morality and vigilance in our banks and financial institutions, could it have remained undetected if a profession wholly outside the state structure -- chartered accountants -- had been doing its job?

In a word, unless we wake up, Bihar is not just an extreme case, it is the future. And the condition to which Pakistan has sunk is a live warning of what happens when such problems are neglected.

Everything else points to the same urgency. Time does not stop just because we are preoccupied with our problems: we talk of the "21st century;" it is five weeks away. The world does not stop because we are busy battling the next caste: technologies continue to replace each other every two-three years; per capita income in China is already double that of India, but with China growing at 10-11 per cent, and us stuck at 6 per cent, the gap between us and them doubles every 14 years -- and the per capita income is just an indicator: military capability, and much else is subsumed in it.

Nor do our problems abate because we are busy sorting out our politics. In the last three-and-a-half years when our politicians were busy bringing down and installing governments, our population increased by over five crore. Even in the six months between the ouster of the Vajpayee government and the installation of the present Vajpayee government, our numbers would have increased by over 70 lakh. We must, therefore, act, as the Buddha would say, "with the urgency of a man whose hair is on fire". The allied point is just as obvious: there is no discord on these issues. Indeed, I believe there is consensus on almost all the issues which are at all within the realm of the possible. When liberalisation was launched, how the critics lampooned it. But where they were in power, those very persons and their parties were taking pride in proceeding on that route even faster than the central government. Similarly, when the critics acquired office at the Centre, they continued those very policies.

That is a large part of the problem today: on almost every practicable matter there is consensus on what should be done, everyone also sees that those steps should be taken forthwith, but when one party takes them, the other shouts and screams, and puts obstacles. So that nothing is allowed to proceed -- except by fits and starts. The same danger lurks today. The economic decisions which will be taken now are ones that carry forward the same process which successive governments have been furthering for a decade. But because this government will be announcing those policies, others will stall them.

There is a conviction -- which all parties need to outgrow -- that because one is in Opposition, one�s job is to oppose, to choke whatever whoever is in government is trying to do. Precisely because it does not have a better idea on the matter, the party out of office feels compelled to contrive differences. Often, a completely unrelated issue is made the occasion for blocking everything. Notice the minatory statements which Congress leaders have been making about Rajiv�s name in the Bofors� chargesheet.

Assume for a moment that there is ground for a genuine difference of opinion on the matter -- I do not see any ground either in law or fact, but assume that there is. How does that difference on this particular matter justify throttling legislation on, say, economic reforms? Even countries deal with each other on some issues in spite of there being sharp differences on other issues. Indeed, many who will today be arguing -- within the Congress, say -- against cooperating with the government on any issue are ones who, when it comes to Pakistan, are most energetic in arguing that we must keep identifying areas on which we can engage it in joint action in spite of what it is doing in Kashmir, and the rest. But when it comes to cooperating with the government of their own country, even when it seeks to further policies they had themselves initiated, Congressmen will think it perfectly in order that they hold back till it interferes in the judicial process and has a document which is before the courts altered in the way they specify. As all parties are in office somewhere or the other in the country, and as all of them are therefore disabled by such conceptions of what the proper role for an Opposition is, all have cause to revise their conduct. The cure liable to be more effective is for people to be alert, notice who is stalling essential legislation or policies, and for what reason, and punish him accordingly.

Governments too would do well to change their ways. At least in five respects. All too often, they lose interest in a remedy the moment it has been enacted. Mr N. Vittal, the chief vigilance commissioner, gives a telling example. In 1988, Parliament passed the Benami Transactions (Prohibition) Act. It was acclaimed to be a decisive step in tackling corruption -- indeed, so urgent and vital were its provisions acclaimed to be that they were first introduced by way of an Ordinance. Clause 5 of the Act specified that a procedure would be prescribed for acquiring property under the Act. Eleven years have gone by, no procedure has been prescribed. Governments have forgotten all about the Act. And not just governments: the other day when I referred to the Act and its fate in the Rajya Sabha, it was evident that MPs too had not bothered to check up on what they had passed. The first point therefore is: follow through on what you get through Parliament, follow through on the schemes you launch.

The second lesson, equally elementary, is about existing institutions. Every government feels impelled to launch new schemes, to set up new institutions. But the need today is to energise existing institutions. It is good that the government will be introducing legislation to set up the Lok Pal: the bill has been in the works for 30 years, and this will be the seventh version of the bill. So, it is good that at last the law will be passed, and the institution will be set up. But just as important is to activate the Lok Ayuktas: in state after state, they have been rendered moribund. Why not call a conference of existing and past Lok Ayuktas, garner their proposals to make the institution functional, and create public opinion for those changes to be enacted? Similarly, I was astonished to learn the other day that the comptroller and auditor general has a staff of 20,000 persons. They produce over a hundred audit reports every year. These run into 15,000 to 20,000 pages. They are packed with details -- often, as we have seen in the case of Bihar, with details of the most alarming kind. But can any one recall a single consequence which has followed as a result of these prodigious labours? The cure would not be to set up yet another institution, but to get together with present and past CAGs and take steps which would make the work of this institution fruitful. The third lesson is about the new institutions we set up. Unable to improve existing institutions, we set up some new one. Unable to get existing courts to speed up, we set up special courts, unable to get states to act reasonably on sharing river waters we enact the inter-state river water disputes law. But the manner we provide for the new institution to function is exactly the manner which has paralysed the old institution. The procedural regulations that special courts must adhere by are exactly the same as the regulations which clog existing courts. The personnel who man the inter-state river dispute tribunals are just the same as the ones that man existing courts: they bring to their new task the same approach, the same fixation on legalisms, on the date of this notification as against that one which hobble our courts. For the new institution to be different, its personnel, the procedural rules that are to govern its functioning, its entire ethos have to be radically different.

Fourth, the solutions must be on an altogether different scale, they must be of an altogether different kind than the ones to which we naturally gravitate. The backlog in courts? As a great concession we agree to the setting up of a dozen courts. But the Chief Justice was mentioning the other day that the requests which are pending for additional courts already total over 4,500. Setting up a dozen more courts -- and that too after years and years of the files going up and down -- is as good as doing nothing. Similarly, to get the inter-state water disputes machinery out of the current rut, we need to man the tribunals with persons whose entire approach will be different: who will craft design solutions rather than pronounce awards that hinge on legalisms.

And when we do alight on a solution, as Montek Ahluwalia with his vast experience points out, we must not look upon it as set in stone. That is the fifth lesson. As new technology beckoned, a new telecom policy was announced in 1994. But technology changed so fast that a newer policy was required by 1998. The steps which have been taken under it have already had to be altered twice. But technology is continuing to evolve at a dizzying pace: the technology to transmit voice over Internet with distortion is almost at hand; you will soon be able, therefore, to talk to persons overseas at the cost of a local call; that will devastate the finances of existing long distance operators. And so we can be certain that an entirely new telecom policy will be required three-four years from now. If we hold up that new policy on the old supposition that the existing policy had been announced just a short while ago, or if allegation-mongering inhibits governments from attempting new formulations, we will be enlarging the gap between us and the rest of the world.

Hence: when you pass a law, when you set up an institution, look back and see how it is working; instead of setting up new institutions, where possible energize existing ones; when you set up new institutions, ensure that their personnel, their operating procedures, their entire thinking is new; think anew repeatedly, and each time at a speed which will, at the least, match the progress of technology.

The Asian Age
November 12 1999

Pocket Edition


Arun Shourie

"Not one paisa has been taken from the Trust," declared the Congress spokesman with a show of righteous indignation. He was declaiming on the Indira Gandhi National Centre for the Arts. But the charge had been altogether different -- that the Trust had been a Government-trust, that it had received Rs 134 crores of Government money and 23 acres of invaluable land, that it had been converted into a private Trust by fraud, that the conversion had been sanctified by collusion between a trustee and the President of the Trust, Sonia Gandhi. Not one of these facts had been disputed by the Congress. Within days, the Delhi High Court itself came down in the strongest possible words on the fraud. It went so far as to say that the pendency of the writ before it must not come in the way of the Government undoing the usurpation.

But the Congress was following the rule: when cornered, deny -- with great passion -- what has not been alleged!

That "denial" was typical. The entire campaign of the Congress has been crafted around the all-too obvious rules of advertising companies, and the all-too obvious propagandists!

"The bigger the lie, the more likely it is to be believed" -- Hitler, not Goebbels; the latter counseled against outright lies! As Congress has become a synonym for corruption, allege corruption in everything the present Government has done -- even when, as in the case of the Telecom policy it has been done at your urging; as Kargil was a striking victory, assert that in fact it was a defeat; as Sonia Gandhi's foreign-ness is an issue, portray Vajpayee as a traitor.

"Confine yourself to little, and repeat this eternally," "A thousandfold repetition of the most simple ideas" -- both Hitler and Goebbels. That rule in turn rests on what is a fundamental proposition with such cynics: that the people have an extremely limited understanding. One must have the "courage", they said, to go on repeating those few points endlessly. "The nature of propaganda lies in its simplicity and repetition," Goebbels wrote in his diary, "Only the man who is able to reduce the problems to the simplest terms and has the courage to repeat them indefinitely in this simplified form despite the objections of the intellectuals will in the long run achieve fundamental successes in influencing public opinion. If other methods are pursued he may influence a circle of unstable intellectuals here and there but will not even scratch the surface of the people."

Sugar scandal, sugar scandal, sugar scandal.... Even after the lie has been nailed, in fact specially after the lie has been nailed you must go on repeating it. When, in the face of facts, you keep repeating the lie, the people -- of limited understanding as they are on this theory -- are liable to infer, "There must be something to it, the fellow would not go on sticking to the allegation."

Hence,

(i) hurl a few simple allegations;
(ii) specially those of which the propagandists themselves are guilty;
(iii) repeat these endlessly;
(iv) specially in the face of facts.

The impression you want to convey about the adversary should be simple. To drill it in, you must have not one lie, but a barrage of them. In fact, you must not stick to one lie for long: the adversary will prove the truth with evidence. So, keep running. A fabrication every other day. True, soon enough that they were all falsehoods will be established, but by then the campaign will be over, the people will have been overwhelmed by other problems. Hence, Bhagwat. Then Mohan Guruswamy. Then Telecom Policy. Then telephone exchanges. Then sugar. Then wheat. Then planes. Then a Category-III flat! Back to sugar....

That Category-III flat was a quantum leap! The Congress spokesman had told all and sundry in Delhi with much flair that he was going to Lucknow to reveal a sensational, explosive scandal. The UP Congress scheduled a special press conference at noon for the explosion. A number of newspapermen turned up. Vajpayee applied for a flat and got an out-of-turn allotment in Delhi, announced the spokesman -- that was the explosion.

Pressmen were incensed. Is this what we were called for?, they remarked. At least Vajpayee paid for the flat. What about the persons sitting to your left and right? These leaders of your party in the state have not purchased a flat or two, they have just taken over government bungalows -- what are you going to do about that?....

Vajpayee has spent fifty years in public life. The "sensational, explosive" revelation of the Congress spokesman reminded people that he hasn't even a house to his name. That all he has is a Category-III flat. That too something he paid for. And who was the Prime Minister when this allotment was made?, the pressmen asked. Narasimha Rao, it turned out!

Soon it was established that some notable Congressmen too had been allotted flats from the same quota. The government had made the allotments for the distinguished services they had rendered to the country.

Not just that, the Supreme Court had instituted a detailed inquiry into out-of-turn allotments. Every irregular allotment had been scrutinized. The allotment to Vajpayee had never been called in question as being even faintly irregular. On the other hand, two Governors -- conspicuous members of the Congress -- had felt constrained to resign. Cases were going on against the then Congress ministers for converting their discretionary quotas into commerce....

The footnote to the story was truly delicious. It turned out that the spokesman who had traveled all the way to Lucknow to make this sensational disclosure, and his family members had received not a Category-III flat, but five plots of land from Bhajan Lal, the then Chief Minister of Haryana! Each one of the five had been an out-of-turn allotment. Bhajan Lal's largesse had been taken to court. A Division bench of the Punjab and Haryana High Court had found the allotments to be so bereft of merit that it had canceled all of them in March 1997. Of the five plots, the spokesman and his family had to forfeit three -- the remaining two had survived because the Court chose to put the cut-off date at 1995, and these two had been made over earlier.

But it would be wholly wrong to think that there was any remorse at having hurled such a silly allegation. The purpose of such hurling is not to convince, but to confuse. Corruption was your characteristic. By these allegations -- wild as they are -- you convey that the facts which have been established about your misdeeds are also just allegations. Second, that similar allegations exist about your adversary too.

The Congress seems to have been advised about an additional advantage. Should your adversary bring up some new embarrassing facts about you during the campaign, you can take the high road, and regret that the campaign, "instead of focusing on real issues," has descended to personal attacks! Better still, you can get friendly journalists to lament "the levels to which the campaign has descended"! This in turn yields several advantages.

(i) You are seen to be concerned about "the real issues".
(ii) That you are the one who has been hurling baseless allegations is covered up.
(iii) You and the adversary are put at par.
(iv) Once you have conditioned the people to believe that everybody is hurling allegations and charges, you don't have to answer the facts that have been revealed about you -- they are no better than the baseless allegations which you have been hurling!

The more unverifiable the "event" the more useful it is for lies! Summarising the practice of master-liars, Jacques Ellul cautions, "Such lies must not be told except about completely unverifiable facts. For example, Goebbels' lies could be on the successes achieved by German U-boats, because only the captain of the U-boat knew if he had sunk a ship or not. It was easy to spread detailed news on such a subject without fear of contradiction." Hence, fables about unrest in the Army "because the Prime Minister is not speaking up to shield the higher command in the wake of the controversies that have risen as a result of the letters that Brigadier Surinder Singh is said to have written..."

As there is always the risk that some damned fool may come out with the facts sooner than you expect, a handy device is to demand, "All we are asking is that the Prime Minister come clean with all the facts." That leaves a way out: "After all, what did we demand? All we said was that the Prime Minister come clean with the facts." Even better, the demand sets you up as the referee! The Prime Minister is to state the facts, and you will decide whether what he has disclosed amounts to "all the facts"!

Recall Sonia Gandhi's response to questions about her friend, Ottavio Quatrocchi. There are no papers which link him to Bofors, she said. If there are any such papers, let them show us the papers, she demanded. The first part was an outright lie: when the judgments of the highest court in Switzerland, of the Delhi High Court, of the Supreme Court were given out, sudden silence.

A glance at the advertisements they have placed in the newspapers -- and even more, the advertisements worth crores which they have had placed in the name of a near-bankrupt organization, "Communalism Combat" -- will show that there are other Goebbelsian maxims too which the Congress has been following in this campaign.

The negative is stronger than the positive: not one positive advertisement in their entire series.

Hatred is stronger than love: killers of the Mahatma, butchers of Christians....

Fear is stronger than hope: the advertisements placed in the name of "Communalism Combat" are textbook illustrations of this maxim.

The central ingredient here is an instrumental view of truth! The test is not whether what one is saying is true or false. The only test is whether it serves the purpose!

In a sense, therefore, it is indeed appropriate that the Congress fielded a lawyer as its spokesman! In theory, lawyers are supposed to be officers of the court. In fact, large parts of the profession have come to believe that their job is to serve their client --- and for the purpose use whatever device seems handy.

So, it has been entirely in character, that the spokesman should -- in his capacity as a lawyer -- have appeared for private cellular operators and argued that the then Telecom Policy with its high license fees was a disaster, and, when the switch was made to a revenue sharing regime, the very same person should -- in his capacity as spokesman for the Congress -- have denounced the changeover, and alleged a scam. It was entirely in character for the spokesman to have raised doubts about the Prime Minister having acquired a Category-III flat in a perfectly normal manner, when he and his family members had got Bhajan Lal, the then Chief Minister of Haryana, to grant them -- not one but -- five plots out of the discretionary quota. It was entirely in character for him as the spokesman of the Congress to cast doubts at the professional integrity of the Attorney General, without mentioning that in his other capacity he is the lawyer for a paper in a suit which the Attorney General has been constrained to file against it for the falsehood it published about him. It was entirely in character for him to be releasing fabricated letters ostensibly written by a Brigadier, and thus, apart from advancing the interests of the Congress of which he was the spokesman, building up a sort of defence through the press, without disclosing that he was himself the lawyer of that Brigadier.

Of course, I do not want to push the parallel too far: Goebbels and his kind -- Lenin and his lot, to take an allied example -- were masters -- diabolic masters. These fellows are just pocket editions! Those masters would never have put out statements which were so patently false: that Vajpayee is a traitor, that he was arming the ISI and the Pakistan Army to invade Kargil... The lies of Goebbels, Lenin and company held the field for decades. These fellows' allegations could not withstand a simple miscalculation: that the campaign was a little longer than usual turned out to be enough for their allegations to be shown up to be the falsehoods that they were...

Saved again! In 1987-89 we had been saved by the ham-handedness of the forgers. This time we have to thank the incompetence of these fabricators.

India Connect
September 27, 1999

Pocket Edition

Arun Shourie

"Not one paisa has been taken from the Trust," declared the Congress spokesman with a show of righteous indignation. He was declaiming on the Indira Gandhi National Centre for the Arts. But the charge had been altogether different -- that the Trust had been a Government-trust, that it had received Rs 134 crores of Government money and 23 acres of invaluable land, that it had been converted into a private Trust by fraud, that the conversion had been sanctified by collusion between a trustee and the President of the Trust, Sonia Gandhi. Not one of these facts had been disputed by the Congress. Within days, the Delhi High Court itself came down in the strongest possible words on the fraud. It went so far as to say that the pendency of the writ before it must not come in the way of the Government undoing the usurpation.

But the Congress was following the rule: when cornered, deny -- with great passion -- what has not been alleged!

That "denial" was typical. The entire campaign of the Congress has been crafted around the all-too obvious rules of advertising companies, and the all-too obvious propagandists!

"The bigger the lie, the more likely it is to be believed" -- Hitler, not Goebbels; the latter counseled against outright lies! As Congress has become a synonym for corruption, allege corruption in everything the present Government has done -- even when, as in the case of the Telecom policy it has been done at your urging; as Kargil was a striking victory, assert that in fact it was a defeat; as Sonia Gandhi's foreign-ness is an issue, portray Vajpayee as a traitor.

"Confine yourself to little, and repeat this eternally," "A thousandfold repetition of the most simple ideas" -- both Hitler and Goebbels. That rule in turn rests on what is a fundamental proposition with such cynics: that the people have an extremely limited understanding. One must have the "courage", they said, to go on repeating those few points endlessly. "The nature of propaganda lies in its simplicity and repetition," Goebbels wrote in his diary, "Only the man who is able to reduce the problems to the simplest terms and has the courage to repeat them indefinitely in this simplified form despite the objections of the intellectuals will in the long run achieve fundamental successes in influencing public opinion. If other methods are pursued he may influence a circle of unstable intellectuals here and there but will not even scratch the surface of the people."

Sugar scandal, sugar scandal, sugar scandal.... Even after the lie has been nailed, in fact specially after the lie has been nailed you must go on repeating it. When, in the face of facts, you keep repeating the lie, the people -- of limited understanding as they are on this theory -- are liable to infer, "There must be something to it, the fellow would not go on sticking to the allegation."

Hence,

(i) hurl a few simple allegations;
(ii) specially those of which the propagandists themselves are guilty;
(iii) repeat these endlessly;
(iv) specially in the face of facts.

The impression you want to convey about the adversary should be simple. To drill it in, you must have not one lie, but a barrage of them. In fact, you must not stick to one lie for long: the adversary will prove the truth with evidence. So, keep running. A fabrication every other day. True, soon enough that they were all falsehoods will be established, but by then the campaign will be over, the people will have been overwhelmed by other problems. Hence, Bhagwat. Then Mohan Guruswamy. Then Telecom Policy. Then telephone exchanges. Then sugar. Then wheat. Then planes. Then a Category-III flat! Back to sugar....

That Category-III flat was a quantum leap! The Congress spokesman had told all and sundry in Delhi with much flair that he was going to Lucknow to reveal a sensational, explosive scandal. The UP Congress scheduled a special press conference at noon for the explosion. A number of newspapermen turned up. Vajpayee applied for a flat and got an out-of-turn allotment in Delhi, announced the spokesman -- that was the explosion.

Pressmen were incensed. Is this what we were called for?, they remarked. At least Vajpayee paid for the flat. What about the persons sitting to your left and right? These leaders of your party in the state have not purchased a flat or two, they have just taken over government bungalows -- what are you going to do about that?....

Vajpayee has spent fifty years in public life. The "sensational, explosive" revelation of the Congress spokesman reminded people that he hasn't even a house to his name. That all he has is a Category-III flat. That too something he paid for. And who was the Prime Minister when this allotment was made?, the pressmen asked. Narasimha Rao, it turned out!

Soon it was established that some notable Congressmen too had been allotted flats from the same quota. The government had made the allotments for the distinguished services they had rendered to the country.

Not just that, the Supreme Court had instituted a detailed inquiry into out-of-turn allotments. Every irregular allotment had been scrutinized. The allotment to Vajpayee had never been called in question as being even faintly irregular. On the other hand, two Governors -- conspicuous members of the Congress -- had felt constrained to resign. Cases were going on against the then Congress ministers for converting their discretionary quotas into commerce....

The footnote to the story was truly delicious. It turned out that the spokesman who had traveled all the way to Lucknow to make this sensational disclosure, and his family members had received not a Category-III flat, but five plots of land from Bhajan Lal, the then Chief Minister of Haryana! Each one of the five had been an out-of-turn allotment. Bhajan Lal's largesse had been taken to court. A Division bench of the Punjab and Haryana High Court had found the allotments to be so bereft of merit that it had canceled all of them in March 1997. Of the five plots, the spokesman and his family had to forfeit three -- the remaining two had survived because the Court chose to put the cut-off date at 1995, and these two had been made over earlier.

But it would be wholly wrong to think that there was any remorse at having hurled such a silly allegation. The purpose of such hurling is not to convince, but to confuse. Corruption was your characteristic. By these allegations -- wild as they are -- you convey that the facts which have been established about your misdeeds are also just allegations. Second, that similar allegations exist about your adversary too.

The Congress seems to have been advised about an additional advantage. Should your adversary bring up some new embarrassing facts about you during the campaign, you can take the high road, and regret that the campaign, "instead of focusing on real issues," has descended to personal attacks! Better still, you can get friendly journalists to lament "the levels to which the campaign has descended"! This in turn yields several advantages.

(i) You are seen to be concerned about "the real issues".
(ii) That you are the one who has been hurling baseless allegations is covered up.
(iii) You and the adversary are put at par.
(iv) Once you have conditioned the people to believe that everybody is hurling allegations and charges, you don't have to answer the facts that have been revealed about you -- they are no better than the baseless allegations which you have been hurling!

The more unverifiable the "event" the more useful it is for lies! Summarising the practice of master-liars, Jacques Ellul cautions, "Such lies must not be told except about completely unverifiable facts. For example, Goebbels' lies could be on the successes achieved by German U-boats, because only the captain of the U-boat knew if he had sunk a ship or not. It was easy to spread detailed news on such a subject without fear of contradiction." Hence, fables about unrest in the Army "because the Prime Minister is not speaking up to shield the higher command in the wake of the controversies that have risen as a result of the letters that Brigadier Surinder Singh is said to have written..."

As there is always the risk that some damned fool may come out with the facts sooner than you expect, a handy device is to demand, "All we are asking is that the Prime Minister come clean with all the facts." That leaves a way out: "After all, what did we demand? All we said was that the Prime Minister come clean with the facts." Even better, the demand sets you up as the referee! The Prime Minister is to state the facts, and you will decide whether what he has disclosed amounts to "all the facts"!

Recall Sonia Gandhi's response to questions about her friend, Ottavio Quatrocchi. There are no papers which link him to Bofors, she said. If there are any such papers, let them show us the papers, she demanded. The first part was an outright lie: when the judgments of the highest court in Switzerland, of the Delhi High Court, of the Supreme Court were given out, sudden silence.

A glance at the advertisements they have placed in the newspapers -- and even more, the advertisements worth crores which they have had placed in the name of a near-bankrupt organization, "Communalism Combat" -- will show that there are other Goebbelsian maxims too which the Congress has been following in this campaign.

The negative is stronger than the positive: not one positive advertisement in their entire series.

Hatred is stronger than love: killers of the Mahatma, butchers of Christians....

Fear is stronger than hope: the advertisements placed in the name of "Communalism Combat" are textbook illustrations of this maxim.

The central ingredient here is an instrumental view of truth! The test is not whether what one is saying is true or false. The only test is whether it serves the purpose!

In a sense, therefore, it is indeed appropriate that the Congress fielded a lawyer as its spokesman! In theory, lawyers are supposed to be officers of the court. In fact, large parts of the profession have come to believe that their job is to serve their client --- and for the purpose use whatever device seems handy.

So, it has been entirely in character, that the spokesman should -- in his capacity as a lawyer -- have appeared for private cellular operators and argued that the then Telecom Policy with its high license fees was a disaster, and, when the switch was made to a revenue sharing regime, the very same person should -- in his capacity as spokesman for the Congress -- have denounced the changeover, and alleged a scam. It was entirely in character for the spokesman to have raised doubts about the Prime Minister having acquired a Category-III flat in a perfectly normal manner, when he and his family members had got Bhajan Lal, the then Chief Minister of Haryana, to grant them -- not one but -- five plots out of the discretionary quota. It was entirely in character for him as the spokesman of the Congress to cast doubts at the professional integrity of the Attorney General, without mentioning that in his other capacity he is the lawyer for a paper in a suit which the Attorney General has been constrained to file against it for the falsehood it published about him. It was entirely in character for him to be releasing fabricated letters ostensibly written by a Brigadier, and thus, apart from advancing the interests of the Congress of which he was the spokesman, building up a sort of defence through the press, without disclosing that he was himself the lawyer of that Brigadier.

Of course, I do not want to push the parallel too far: Goebbels and his kind -- Lenin and his lot, to take an allied example -- were masters -- diabolic masters. These fellows are just pocket editions! Those masters would never have put out statements which were so patently false: that Vajpayee is a traitor, that he was arming the ISI and the Pakistan Army to invade Kargil... The lies of Goebbels, Lenin and company held the field for decades. These fellows' allegations could not withstand a simple miscalculation: that the campaign was a little longer than usual turned out to be enough for their allegations to be shown up to be the falsehoods that they were...

Saved again! In 1987-89 we had been saved by the ham-handedness of the forgers. This time we have to thank the incompetence of these fabricators.

India Connect
September 27, 1999

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