India’s Modi faces calls for resignation over French jet deal

India’s prime minister was under fire over allegations of corruption in a military jet deal with France after comments by former French President François Hollande. (Reuters)
Updated 22 September 2018
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India’s Modi faces calls for resignation over French jet deal

  • Indian political parties have been gunning for Modi over the 2016 purchase of 36 Rafale planes from Dassault Aviation estimated to be worth $8.7 billion, saying he had overpaid for the planes and had not been transparent.
  • Political analysts say that the BJP is “losing in the perception war.”

DELHI: India’s prime minister was under fire over allegations of corruption in a military jet deal with France after comments by former French President François Hollande. Hollande was quoted as saying Narendra Modi’s government had influenced the choice of a local partner.
Indian political parties have been gunning for Modi over the 2016 purchase of 36 Rafale planes from Dassault Aviation estimated to be worth $8.7 billion, saying he had overpaid for the planes and had not been transparent.
The opposition, led by Congress President Rahul Gandhi, spent the past year alleging that the deal is a scam, in which India is overpaying for jets and the government is allowing a private company — billionaire Indian businessman Anil Ambani’s Reliance Defense — to benefit instead of state-owned Hindustan Aeronautics Limited (HAL).
On Friday, Hollande, who cleared the intergovernmental deal when he was in office, was quoted as saying New Delhi had put pressure on Dassault to choose Reliance.
“We had no choice. We took the interlocutor that was given to us,” he was reported as telling the French news service Mediapart, fueling a political storm in India.
The Indian government, however, has insisted all along that it had nothing to do with Dassault’s decision to work with Reliance Defense.
Under Indian defense procurement rules, a foreign firm must invest at least 30 percent of the contract in India to help to build up its manufacturing base and wean off imports.
HAL was the sole contender for being the local partner of Dassault Aviation, but when the deal was sealed in 2015 during Modi’s Paris trip the Reliance Defense procured the contract .
“The PM personally negotiated and changed the Rafale deal behind closed doors. Thanks to François Hollande, we now know he personally delivered a deal worth billions of dollars to ...Anil Ambani,” said Mr. Gandhi in a tweet.
Gandhi further tweeted: “The PM and Anil Ambani jointly carried out a ... SURGICAL STRIKE on the Indian Defense forces. Modi Ji you dishonored the blood of our martyred soldiers. Shame on you. You betrayed India’s soul.”
Gandhi repeated the charge in a press conference in New Delhi on Saturday.
The BJP, however, says that there is no corruption.
“The fact that two sovereign heads of States negotiated a deal means that there is no room for corruption,” said Sudesh Verma, BJP spokesperson.
Talking to Arab News Verma emphasized that “the highest integrity was maintained in the deal. Now the Congress is not talking of corruption but favoritism. Merely by saying that Reliance Defense was favored by us would not cut any ice. These are insinuations and are irresponsible.”
Political analysts say that the BJP is “losing in the perception war.”
“No matter what the indian government says that perception is that the Indian government gave the offset contract to Anil Ambani, a guy who has no history of producing defense equipment,” says Nilanjan Mukhopadhyay, a New Delhi based political analyst.
He added: “The halo around Modi has been severely diminished after the recent revelations. This is something which it would be very difficult to live it down now.”


Pakistan ex-PM in custody of anti-graft body amid Qatar LNG case

Updated 19 July 2019
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Pakistan ex-PM in custody of anti-graft body amid Qatar LNG case

  • Last year, the NAB ordered an inquiry into Abbasi over the alleged misappropriation of funds
  • Pakistan is currently receiving a supply of 500 million cubic feet per day of LNG from Qatar

LAHORE/ISLAMABAD: Former Pakistani Prime Minister Shahid Khaqan Abbasi was remanded in the custody of the National Accountability Bureau (NAB) for 13 days, a day after he was arrested in a case involving a multibillion-rupee liquefied natural gas (LNG) import contract to Qatar.
Abbasi, who is also the vice president of the opposition Pakistan Muslim League — Nawaz (PML-N) party, was presented before Judge Bashir Ahmed of an accountability court on Friday morning. The case has been adjourned until Aug. 1.
Speaking to journalists before his appearance at the court, Abbasi called his arrest “an attack on democracy.”
Last year, the NAB ordered an inquiry into Abbasi over the alleged misappropriation of funds in the import of LNG that the agency says caused a loss of about $2 billion to the national exchequer. He is also being investigated for allegedly granting a 15-year contract for an LNG terminal to a “favored” company. Abbasi rejects the allegations.
PML-N Sen. Mushahid Ullah Khan said Pakistan was facing “the worst energy crisis of its kind” when his party came to power after the 2013 general election, and the LNG deal was quickly finalized with Qatar to overcome it.
“The industry was shutting down with thousands of people getting unemployed, but this LNG supply helped us reverse the tide,” he told Arab News.
Khan said Pakistan’s LNG contract with Qatar was “the cheapest possible deal” the country could have gotten, and rubbished allegations of corruption and kickbacks.
“If there is something wrong in the contract, why is this government not reviewing it?” Khan asked.
Pakistan is currently receiving a supply of 500 million cubic feet per day of LNG from Qatar under a 15-year agreement at 13.37 percent of Brent crude price. It is a government-to-government agreement and the price can only be reviewed after 10 years of the contract.
“It is the worst example of political victimization by Prime Minister Imran Khan’s government,” PML-N Chairman Raja Zafrul Haq said on Friday after the accountability court remanded Abbasi in NAB custody. “Shahid Khaqan served the nation with dignity and did not commit any wrongdoings,” Haq added.
Abbasi was arrested on his way to Lahore to address a news conference along with PML-N President Shehbaz Sharif on Thursday.
He served as federal minister for petroleum in the Cabinet of former Prime Minister Nawaz Sharif when he finalized an LNG import deal with Qatar. Abbasi then served for less than a year as prime minister following the resignation of Sharif in 2017.
On Thursday, Pakistan opened technical bids of four international companies for the supply of 400 million cubic feet per day of LNG for a period of 10 years to fulfil the country’s rising energy requirements.
Officials told Arab News that a Qatari delegation, led by Emir Sheikh Tamim bin Hamad Al-Thani in June, resented that Islamabad had ignored its lowest offer of 11.05 percent of Brent for the fresh deal, and instead floated tenders seeking provision of LNG for 10 years from international companies.
The secretary of Pakistan’s Ministry of Energy said: “Yes, this is true. Qatar expressed its annoyance, but we are following our rules. Qatar has not submitted its bid to participate in the process.”
Khan won power last year vowing to root out corruption among what he describes as a venal political elite, and views the probes into veteran politicians — including Sharif and former President Asif Ali Zardari — as long overdue.
The NAB’s campaign has become a topic of fierce political debate in Pakistan, and its focus on the new government’s political foes has prompted accusations of a one-sided purge. The government denies targeting political opponents.
Commenting on Abbasi’s case, former NAB prosecutor Munir Sadiq said the anti-corruption watchdog would file a reference against Abbasi in an accountability court for prosecution, but only if it found irrefutable evidence against him.
“This case is now at the evidence-collection stage, and the NAB will file a reference in the court if it finds irrefutable corruption evidence against Abbasi during the investigation,” Sadiq said.
He added that any inquiry against Abbasi would be shelved after 90 days if corroborating evidence of corruption was not found.
“If a weak case will be filed against the accused, then he will surely receive support from the court,” Sadiq said.