Screenshot of media coverage of the Praful Patel bribery investigation in India
Indian opposition leaders are calling for a government inquiry into allegedly corrupt dealings at the country's Ministry of Civil Aviation, following a Globe and Mail report on bribery and bid-rigging allegations that implicate, among others, cabinet minister Praful Patel.
"This is a very serious development … particularly [given]the way Air India was robbed," said Balbir Punk, spokesman for the main opposition Bharatiya Janata Party (BJP). "The Prime Minister must immediately order a high-level inquiry and take the nation in confidence into what he is doing about this serious matter."
The Community Party of India said the government "has lost credibility" and the Prime Minister "must act now" in response to the allegations.
The Globe has detailed the allegations against Nazir Karigar, a 64-year-old Indian-born Canadian citizen and the first individual to be charged under Canada's foreign bribery law – the Corruption of Foreign Public Officials Act. As part of its case against Mr. Karigar, the Royal Canadian Mounted Police alleges that he divulged to others that he had channelled a $250,000 bribe to Mr. Patel while he was minister of Civil Aviation, with the help of a political ally, in 2007.
Mr. Patel, who is now Heavy Industries Minister, has said he had no knowledge of the scheme. There is no evidence that he accepted the money.
The story dominated the Indian media Friday as supporters from the Indian National Congress-led coalition government and Mr. Patel's small Nationalist Congress Party (NCP), part of that coaliton, came to his defence.
The current Minister of Civil Aviation, Ajit Singh, ruled out an investigation. "Anyone can write anything in a newspaper, but for an investigation there should be some substantial reason," Mr. Singh told reporters. "He [Mr. Patel]has said that he has not done anything. I have no further information on the issue. He had spoken to the Prime Minister and is ready for any investigation."
NCP President Sharad Pawar told reporters there is "no evidence about the fellow who is saying something about Patel."
Mr. Karigar has been accused of bribing two Air India managers and conspiring with a friend, former Air India director of security Hasan Gafoor, to ensure that his employer was short-listed for a $100-million airline security contract. Mr. Karigar's employer was a multinational high-tech security company called CryptoMetrics; it has since declared bankruptcy and no one else with the firm has been charged.
While Mr. Patel was minister of Civil Aviation, the parastatal Air India accrued billions of dollars in debt, and there have been sustained but unproven allegations about corruption in the process of acquiring new aircraft and other decisions made while he oversaw in the ministry; his role has been criticized by the national auditor. Mr. Patel's self-reported wealth grew from $15-million to about $23-million during two years while he held the ministry job.
In interviews, Mr. Patel reiterated his innocence and his intention to take legal action, although it was not clear whom he intends to act against. In a letter to India's Prime Minister on Thursday, Mr. Patel insisted that he learned of the contract for the first time when interviewed by a Globe and Mail reporter. "I earnestly request you [sic]that the factual position be conveyed to the authorities in Canada in order to avoid any embarrassment to the government of India or to me personally in the matter," he wrote in a letter to Prime Minister Manmohan Singh, a copy of which was circulated to local media.
Mr. Gafoor, who is a former chief of police of Mumbai, confirmed in a phone interview with The Globe that he was a childhood friend of Mr. Karigar's but denied any knowledge of wrongdoing in connection with the CryptoMetrics deal. Globe sources say the RCMP case alleges that he and Mr. Karigar conspired with the company to draft the tender and rig the bidding process to ensure the Canadian firm won it. According to the Indian Express, Mr. Gafoor sent out a text message to some media Friday saying, "I have no such communication from any Court/Authority (in Canada). Hence cannot comment. Anyway, I understand that said project had never even materialised."
These events come as the Congress-led government is already crippled by other corruption allegations. On Friday, the Supreme Court cancelled 122 cellphone licences awarded by a telecommunications minister who is now in jail awaiting trial in connection with the sale of those licenses; the decision wiped out both an estimated $25-billion in investment and the Congress defence that the process had been clean. Battles over anti-corruption legislation have hijacked the last two sessions of parliament and mobilized massive street demonstrations over the past year.