Indian parliamentary committee slams govt in leaked report on 2G telecom scandal

Shown here attending the Central Bureau of Investigation (CBI) and State Anti-Corruption Bureaux conference in New Delhi in 2009, Prime Minister Manmohan Singh has drawn criticism for several high profile corruption scandals exposed during his two terms in office. (RAVEENDRAN – AFP/Getty Images)

A leaked copy of a draft report of the Parliamentary Accounts Committee charged with investigating a huge corruption scandal involving the allotment of telecom licenses slammed the prime minister, his office and other top government officials, reports the Times of India.

Though some publications have suggested that the PAC focused on the Prime Minister's Office (PMO) rather than the PM himself, others said that the line grows blurry in certain instances, such as when the report's authors question the decision to allow former telecom minister A. Raja to proceed with allocating spectrum on a "first come, first served" basis rather than a competitive bidding process even after he wrote to the prime minister outlining his plan.

The report also takes to task then finance minister P Chidambaram, according to TOI. It says that in his note on January 15, 2008, Chidambaram acknowledged that spectrum is a scarce resource and the price of spectrum should be based on its scarcity value but made "the unique and condescending suggestion that the matter be treated as closed." The report also says Chidambaram, despite being guardian of the public exchequer, did not initiate action against those responsible for this loss.

The PAC is set to meet today to finalize the report — deliberations that CNN/IBN writes are likely to look like "open war."

The Congress and DMK parites are likely to demand the resignation of PAC chairman Murli Manohar Joshi (of the Opposition BJP), alleging he leaked out details of the draft report in order to topple the government, the news channel said.

The PAC is investigating allegations of underpricing of 2G spectrum by the telecom ministry and the illegal manipulation of the spectrum allocation process to favor a few select companies. According to a report submitted by the Comptroller and Auditor General based on money collected from the auction of 3G licenses, India lost as much as US$39.16 billion due to former telecom minister A. Raja's decision to grant the 2G licenses on a first come, first served basis rather than holding an auction.