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Hartosh Singh Bal turned from the difficulty of doing mathematics to the ease of writing on politics. Unlike mathematics all this requires is being less wrong than most others who dwell on the subject. He is the Political Editor of Open. EMAIL AUTHOR |
What had seemed a virtue for much of Manmohan Singh’s tenure has now emerged as one of the great weaknesses of this government. At a time when the country needs leadership, India is being managed by an able and dutiful economist who far too often forgets that he is supposed to possess a spine. The press conference on 16 February, marked by the typical pick-and-choose policy of the current media advisor Harish Khare whose rather disappointing tenure has coincided with a downturn in the national perception of the PM, only served to highlight this very failing of Manmohan Singh, one that has led to the current crisis of perception. This was most evident in how the PM chose to tackle a simple question—did he or did he not agree with his minister Kapil Sibal that there was no loss to the exchequer in the 2G scam?
There were many things the PM could have said. He could have called Raja’s actions a disgrace, and said that India as a nation must create institutions that never again allow a minister to indulge in such acts. He could have said this is time for facing up to the truth, that he indeed made a mistake in allowing Raja to take up a ministerial berth in UPA-II. He could have also said that there are indeed compulsions of coalition politics but they do not extend to providing a cover for criminal acts. Instead, he chose to replicate Sibal’s prevarication.
Perhaps this was to be expected, given that Sibal was asked to postpone a foreign trip to brief the PM for this press conference. When Sibal had dismissed the possibility of a loss to the exchequer, we could almost sense the lawyer in the man making a legal case for what he was defending. The smirk on his face at the time suggested he himself did not buy the argument he was making but felt he could convince others with his sophistry.
He soon learnt otherwise, or should have, but it seems Manmohan is intent on repeating his mistake: “With regard to loss of revenues, it is very much dependent on what is your starting point... You have to assess what is the magnitude after asking yourself ‘what was the right price?’ I have explained to you that the then existing policy of the Government was that an auction should not take place...I am not in a position to say there is a foolproof method in which way one can determine the loss.”
A man as intelligent as Manmohan Singh should have realised how absurd and incongruous this sounded. He was not taking part in a college debate, he was addressing an aghast nation that needed some reassurance. Instead, he chose to mock us by suggesting there was no procedural wrongdoing involved in what had happened, and the loss to the exchequer was notional because it depended on how you chose to account for the scam. This was not the time to dwell on procedures or accounting, but to face up to the wrongdoing that did take place.
This magazine has time and again reported the cases of Swan and Unitech, both companies that had no business being allotted spectrum licences, and which diluted their equity shortly after without investing money in executing the licence. After being awarded the licence at Rs 1,537 in the 2008 2G spectrum allotment, Swan sold 45 per cent stake to Etisalat for Rs 4,200 crore. Unitech, which bought the licence for Rs 1,661 crore, sold 60 per cent equity (actually 67.25, by the time the deal came through) for Rs 6,120 crore to Norway-based communication company Telenor.
Manmohan Singh actually made the claim that he thought such dilution of equity was a valid way of raising money to execute the licence. This is absurd when what actually happened was that companies with no experience in the sector bought spectrum on the cheap without the means of executing it and diluted stakes to pocket a huge sum. And all this seems to have happened with the active collusion of the minister. This is indeed a subsidy, but a subsidy not to the consumer but to the companies involved. If this is defensible, then it is worth asking what in Manmohan Singh’s eyes constitutes a crime—what indeed does he think is corruption. These were not the words we expected to hear from a Prime Minister.
OLDER COMMENTS FIRST
14 COMMENTS
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Well Said, Sir. Leadership and statesmanship have been absent for quite a while and it is frustrating to see the cover ups and utter lack of respect for the toiling masses' honest contributions by condoning corrupt practices, and living with the corrupt political honchos under the garb of coalition politics. I'd rather see him show some spine and resign. Following the high command's orders dutifully and providing spineless governance has been the hallmark of his regime. What a poor legacy to leave for the masses to remember him by when is gone from leadership position.
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I was amazed by the blinkered 'analysis'. Do you even consider the possibility that you err Mr Editor by publishing such palaver or does misguided self righteousness shut your mind to other views?
Mr Sibal and the PM have been stating the obvious but Mr Bal just does not seem to get it and you continue to publish such perverse views. Is this what your suggested committment to journalism is all about?
Isn't it obvious that NO AUCTION WAS POSSIBLE SINCE THERE WOULD NOT BE A LEVEL PLAYING FIELD BETWEEN THOSE WHO RECEIVED 2G LICENCES AND THE NEW ENTRANTS. Competition in a deregulated environment cannot be fostered by a lack of a level playing field. Even an elementary economic understanding will tell that. This was the obvious pitfall of the telecom policy under which 2 G licences and spectrum were dished out.
So what is obvious - a) Competition required new entrants b) Competition required level playing field c) Competition in 2 G has benefited the customer and the government and telecom entrepreneurs d) No way market driven pricing for spectrum would ensure a level playing field e) Determining market price from private equity sales was a futile exercies if competition had to be sustained in the sector f) Not enforcing market price would entail potential 'presumptive' losses but this at best is only a hypothesis and could not mean avenues for the government to raise money without messing the sector g) Foregoing revenue (whatever it is presumed to be) could be a good policy decision by Government if there is a larger good involved (and economically the larger good can be quantified easily)
Any one dealing with Private equity is aware of how these transactions are priced but could the government have priced on the basis the answer is obviously NOT.
So then what was the criminal culpability of the minister? (NO ONE IN HIS RIGHT MIND CAN SUGGEST CRIMINAL CULPABILITY ON A CABINET COLLECTIVELY OR THE PM) and what is the expected response from a PM to mr Bal's question.
Criminal culpability IF ESTABLISHED would be that procedures were abused by the minister for personal gain. The matter is under investigation.
The PM at no stage in his news conference suggested that there were no procedural vioaltions for personal gain.
To the question was there an actual loss based on pricing of private equity sales by Swan and Telenor the answer is obviously and emphatically no! The government due to policy was preempted hence THEY COULD NOT HAVE RAISED THE FUNDS THAT THE PRIVATE COMPANIES COULD RAISE (no point salivating about these presumptive losses but rather pursue corruption by violating procedures if that can be established).
In the PM's eyes or any normal readers view the crime is - only if and when we can establish that procedures were violated for personal financial gain or the gains of a political party. The matter is under investigation. If there is no suspicion of a crime what is the CBI investigating?
Has the PM suggested that the CBI is out to lunch or they are actually investigating the heart of the matter?
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From the comments Mr D'Souza has made, it appears that he has been hired by the interested parties to hurl abuse and innuendo on Mr Bal. Such pathetic people are the cause of what is wrong with our country. People like D'Souza must be condemned by every patriotic and right thinking Indian.
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Mr. Arnold D'Souza! I suggest you quickly rush to your shrink and get a checkup done!
At the time of auction, there were more than 15 operators in the country! This is no need to bring in any more players (Swan is yet to start its operations! Effectively, adding 1 new player Uninor is too high a price - 1.76 lakh crore - to improve competition!
You keep shouting "IF ESTABLISHED".. Did you follow what happened that day? How the "fcfs" was changed to "date of payment" than "date of application" and how pinstripe suit businessmen pushing each other like in a ration shop to handover drafts of Rs. 1600 crores?? If the old man MMS can't see this with his own eyes and come to a conclusion about wrongdoing, suggest you take him also to your shrink!
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Manmohan has a spine. He has a share in the loot and pls don't misunderstand him. He has a spine that is why he walks around without any shame even after being exposed.
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Well said Sir! I work for an IT company. Imagine, I released an order for 100 Computers from a Caterer/Real Estate dealer/Pan Dabba, what would have happened? I would be fired immediately, and the PO cancelled. Simple. The PM thinks we all are fools?
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Mr Sharma it would be better if you offer reasoned argument rather than hiding behind self certified patriotism. Our country can do without biased journalism and self appointed patriots a diabolic combination indeed. So please offer your arguments (if you have one)
Mr Muthu who decides how much of competition is adequate? It is quite obviously not me and you but the market place (and M&A activity within the regulatory framework).
I would reiterate 'if established'. Mr Singh obviously does not have to come to a conclusion about wrong doing, and that too at the behest of detractors who revel in idiot level journlism. Conclusions about the wrong doing - that is the job of the SC monitored CBI probe. If you have definitive information you should be helping the CBI, but you would rather join in Mr Bal's abuse of the PM (accusing him of being spineless).
As for your suggestions on finding a shrink you can stuff the advise. I will not even recommend a shrink to you when you are so far gone, way beyond redemption. Get a life man!
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Well written Mr Bal. Manmohan and many of our mediamen are without spine. Hats off to you for calling spade a spade.
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IN NEAR FUTURE INDIA WILL REMEMBER THIS MODERN DAY CHANAKYA.
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Great Article...A true representation of what is going on. It seems to me now that as we move forward in the 21st century it will be very hard for a honest man to live, work and do business in India. I say this because if a person like MMS is ready to fight out for A.Raja, Kalmadi and others who have looted the country then I don't expect anyone to fight for a honest common man. As sad as it sounds but I think that's the reality
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Wonder why India wants a PM with a 'spine'? Do you guys want a dictator, a Hosni, Stalin, etc? Dr. Manmohan Singh has more spine than most of us other Indians. Mr LK Advani led the Hindutva mobs to pull down a Mosque, and he conveniently denied the charge in th courts. Can you tell me if Babri Mosque was not attacked by Hindu zealots then who else was there? Did that gang show any signs of spine in admitting their act? When Vajpayee said that we would be having a 'aar paar' war with Pakistan, and then retracted his words, did he show any spine? I am not saying that a hundred mistakes could justify a new error. We have to appreciate the context & time of the events. India is a country that reveres Ganga and also pollutes it. We are a secular republic where Sikhs could be murdered and no one is hanged, and moreover the people at large support the killings by voting the killers into power with huge numbers. Only Congress can not be blamed for cold blooded murders of innocent Indian Sikhs but also all those who voted for the party in the subsequent elections. Modi repeated the same effect with same success in Gujarat and he gets support of Gujarati people for his act of bravery.
India should be grateful to Dr Manmohan Singh for steering the country out of economic crisis way from the Hindu rate of growth into the double digit aspiring economy. Before we seek to hear him let us build ourselves unto a level to understand his words. When you have cardiac failure you don'rt engage the doctor to explain you how? Let Dr Manmohan Singh do his job and going by his previous record, India would be grateful to him that such a person ever led it with unprecedented humility, honesty and caliber.
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By Arnold D'Souza or any other name, we can spot lawyers arguing for the scamsters, they all twist facts and make crows into swans.
Congress has enough lawyers... as Hartosh said, the deficit is not in that area. Mr Sibal, Abhishek Singhvi, Chidambaram, ... they all know how to twist facts and argue endlessly to save any kind of scamsters. This is what they are good at. Remember Bhopal. Even 26/11 frank reactions were outed through wiki, say the same thing.
The govt keeps the Judiciary underfunded by allocating less than 1% of the national budget to Judiciary. That is the biggest scam, gov't knows how to delay until scamsters can get away.
Delaying and arguing is their game. Look at the case of another Singhvi, Basant N Singhvi, Supreme Court lawyer (jailed for cheating client) ... This Singhvi is successfully avoiding trial by delaying tactics and getting insider information through his contacts so as to derail another investigation, as another client Ms Guninder Gill is putting on a brave fight in courts for justice, and receiving threats and intimidation. The Open Magazine should expose all these bad elements of society.
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"Any one dealing with Private equity is aware of how these transactions are priced" by Arnold D'Souza, is a fraud argument.
Swan, Unitech and others who sold their stakes for high prices can lay claim to honesty IF AND ONLY IF "VALUE ADDITION" was done by them in their respective company's/businesses. The answer is NO, there was no value addition done and hence this is an open and shut case of a fraud and a scam
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The need for argument is for thieves like Raja and Sonia, and for their public defenders like Arnold. It is people whose money is looted, and people do not have to reason out - they are to question these thieves in the dock.
No matter what justification is given, fact remains that congress rule has always been scam prone, riot prone, terrorism prone, division prone, separation prone, regression prone, corruption prone. There is no need to look for this or that scam, there are just too many.
What we need is a set of honest people, not traitors. And they cannot be found in congress. As simple as that.
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