Govt lets Fernandes off the hook

Defence ministry affidavit flawed: Congress

Although the defence ministry, in an affidavit, has exonerated former Defence Minister George Fernandes of any violation of financial rules while procuring defence-related material during the Kargil conflict, top United Progressive Alliance (UPA) sources said Attorney-General Milon Banerjee would make efforts to point out that the affidavit submitted by the ministry was flawed.

Fernandes, buoyed by the clean chit, held a press conference where he demanded that the central vigilance commissioner's report on the issue and the Phukan Commission report on Tehelka expose be made public.

Though Fernandes said he would file no defamation case against UPA chief Sonia Gandhi, he said: "It is too late now. We will take the matter to the people's court."

Referring to allegations levelled against him during his tenure as the defence minister, he said: "I am happy the government has filed an affidavit in the Supreme Court" adding there was no violation of any financial rules or the defence procurement procedures.

But it was clear that the Congress, and the ruling UPA, was aghast at this turn of events. In fact, Railway Minister Lalu Prasad called on Law Minister HR Bharadwaj and asked him how the government had cleared Fernandes while it was still pursuing corruption cases against him (Lalu).

The government is clear that in court, it is not the affidavit furnished by the defence ministry that matters but the view the Bench takes of it.

As the case was part of a public interest litigation and the ministry is the accused, the attorney-general has been asked to cooperate with the court.

The MoD's case in court was that modified procedures issued on 21 June 1999 were not to substitute or supercede the prescribed procedures for normal procurement action.

The modified procedures were meant only to "telescope" the time frame, particularly for imports, that has become critical keeping in view the intensity of "Operation Vijay" and unpredictability of the situation on the period for which the operation would last, it said.

In the affidavit the government said the measures taken to abridge the time frame related to simplification of terms of contract and simplification of procedure.

In the simplification procedure, provisions were made to make Price Negotiation Committee (PNC) reports more comprehensive, approval for the release of foreign exchange together with expenditure, clearance and a closer monitoiring of contract signed, MoD said.

"These in no way violated any of the financial rules of he government or Defence Procurement Procedures, 1992."

The Supreme Court had issued notice to the centre to explain what steps it had taken after the report of Comptroller and Auditor General (CAG) referred to irregularities in the purchase of arms and ammunition and other materials during and after the Kargil war in July 1999.

The apex court had issued notice only to the centre even though the PIL had made former Defence Minister George Fernandes party while alleging that the rregularities in the Kargil scam caused a loss of Rs 2,175 crore to the national exchequer.