India Today Group Online
 


April 09, 2001
Issue


India Today, April 2, 2001

 

COVER
   

Victims Of The Crash Small investors like Girish Patel of Ahmedabad have lost much of their life's savings in the stock market crash. A profile of some middle-class investors who burnt their fingers.

Villains Of The Crash SEBI Chairman D.R. Mehta along with bankers, and brokers must share the responsibility for allowing yet another scam by their acts of commission, and omission.

What's Next For The Economy?
For the third time since 1997, a combination of sliding stock markets, political instability, and global slowdown threatens to turn the hopes of an economic take-off into despair.

 

 
THE NATION
   

Numbed By Disgrace
The BJP, still in shock, begins life after the Tehelka expose with a new president and a combination of hope and bluster. A swot analysis.

 

 
INTERVIEW
   

"I'd choose Musharraf"
Former Pakistan prime minister Benazir Bhutto talks about her relations with her country's politicians, Indo-Pak relations and Kashmir in an interview to Aaj Tak.

 

 
BUSINESS
 

Official Obstacle
Chhattisgarh Chief Minister Ajit Jogi eggs on workers to go on a strike that is adversely affecting production, and profits.

 

 
DEFENCE
 

Fire Fighting
As the Tehelka controversy slows the defence deals, the Government takes steps to revamp the set-up and streamline the weapon procurement system.

 

 
OTHER STORIES
     
 



 
  Home  
 

DEFENCE: THE ESTABLISHMENT

Porous System

Despite incriminating evidence, only one of the four serving army officers (Major-General P.S.K. Choudhary) came to Army Headquarters the morning after the tapes were screened to file a written admission of his guilt. In a two-page, handwritten letter, he confessed that he had taken the money but maintained he had not traded it for any favour. A three-member court of inquiry, headed by a lieutenant-general is now grilling Choudhary and the other officers-Colonel Anil Sehgal, Brigadier Iqbal Singh and Major-General M.S. Ahluwalia-but a lot more will have to be done, for the spycam shows that the system is porous and open to manipulation at all levels. Officials of the Military Intelligence are now probing the assets of army officers and looking into how they have acquired houses in posh localities in Delhi. Choudhary is suspected of having a house in Vasant Vihar worth Rs 1.86 crore, according to the middlemen interviewed by Tehelka.

Another probe headed by a joint secretary is on in the MoD to look specifically at procurement procedures, but this is the third time that such an exercise is being undertaken without too many lessons having been learnt from the earlier inquiries. Defence middlemen were first banned by former prime minister Rajiv Gandhi after the Bofors scandal, but the system continues to be manipulated.

THE FOURTH HORSEMAN
The Government proposes to appoint a chief of defence staff to act as a single-point military adviser. His role:

# Coordinate all perspective plans of the armed forces.

# Head the country's nuclear forces.

# No operational command of the forces which will continue to be vested in the three service chiefs.

 
 
Army chief S. Padmanabhan Air Force chief A.Y Tipnis Naval chief Sushil Kumar  

PROCUREMENT CLEAN-UP OLD SYSTEM

Each force had its own weapons equipment directorate for procurement.

Too many agencies with different hierarchies and no coordination.

Resulted in delays and lack of transparency, with little accountability.

Despite ban on middlemen, system went underground and flourished.

PROPOSED SYSTEM

All the three directorates will come under a Procurement Board.

All key agencies involved will now come under the Board.

Clear line of decision making and a degree of corporatisation.

More rational policy that will recognise agents but with checks.

 

Fernandes knows this only too well. "I faced a lot of pressure from politicians of all hues," he conceded after his resignation, and these related to minor things like the selection of packaging material for weapons-wood, not metal-when a proposal to shift to metal boxes was mooted. These letters, written by well known MPs, will now be tabled on the floor of the House. Last year, when similar allegations were made, Fernandes had asked the CVC to probe all deals over Rs 75 crore signed after 1989. In August last year, the CVC submitted the interim findings and recommended certain procedural changes. It was to give a more detailed report by March 31, but because of the Tehelka exposure CVC chief N. Vittal says it would be ready by the end of April. Vittal refuses to divulge more but says, "It is time that the sacred cow of defence purchases was brought out from behind the purdah and made more transparent. The current system is too secretive and results in delay. This is an ideal set of factors for corruption to set in."

Vittal's tone is ominous as it means his report will be tough and may confirm some of the fears highlighted by the scam. There is clearly a need to plug the loopholes. For, the most worrying aspect is, as retired Air Marshal B.D. Jayal says, "Big deals always saw corruption at the highest levels. Now it has percolated down to the uniformed class." The hole is deep and the Government will find it difficult to dig itself out of it quickly.




 
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Care Today
     METRO TODAY
 
   

MetroScape

Collaborative Class
Italian designer and architect Tarshito Nicola Stripoli has been busy rearranging world geography.
more...

Looking Glass

Delhi Salon:
Jacques Dessange

Mumbai Theatre:
IMAX dome

Mumbai Restaurant:
Watering Hole

 

 
    Web Exclusives
DESPATCHES
 

The ambitious Anandgarh township proposal stirs another round of controversy as a high court order foils the Punjab Government's plans of acquiring land for the project. INDIA TODAY's Special Correspondent Ramesh Vinayak reports in
Despatches.

 

 
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