Friday, 20 July 2012

Wantonly discrediting Presidential Election


Ever since the 13th Presidential election process started and the United Progressive Alliance (UPA), ruling at the Centre named its candidate, not a single day passes without the loquacious functionaries of the BJP, the gossipy Subramanian Swamy and their chatterbox candidate P.A.Sangma vilifying the UPA candidate Thiru Pranab Mukherjee and thus wantonly discrediting and trivializing the election to the highest and honourable office in the country.
This may probably be the first time in the history of Presidential elections that an ambitious and disgruntled politician thrust himself as the candidate of opposition, faute de mieux, at first sponsored by political lightweights in national politics, the Chief Ministers of Orissa and Tamil Nadu. Not to be undone the irrepressible Chief Minister of West Bengal, who like her Tamil Nadu counterpart could not reconcile to any other taller political leader from the state, floated her own list of probables among whom one was improbable, the other gracefully excused himself immediately and the last waited for some days hoping to muster support and finally gave up as in the story of the fox and sour grapes. In the meanwhile, immediately after the UPA announced its candidate for the election, parties outside the UPA like the Samajwadi Party and Bahujan Samaj Party and parties opposing the UPA like the Shiv Sena and Janata Dal (U) from the BJP-led NDA and the CPM and Forward Bloc from the Left parties and even some influential leaders of the BJP like Maneka Gandhi and B.S. Yeddyurappa of Karnataka extended their support to the UPA candidate, thus ensuring his victory with a very comfortable margin.
With all his past records, Purno Agitok Sangma himself trivialized the dignity of the Presidential election by proposing himself  as the first ‘tribal candidate’ arguing “Muslim, Sikh, Scheduled castes and a woman have all occupied this seat. So why shouldn’t a tribal?” hoping that people would have forgotten that all those persons were sponsored by others and not projected themselves cheaply as if for a panchayat ward, like him. Many would recall that during the late nineties when the Lok Sabha would plunge in chaos, the Chair of the Speaker would actually be smiling. Only much later that Speaker P.A.Sangma shared the secret; he said he would now slip in pages of his favourite Tom and Jerry and read the comic book while the members were fighting. From the manner he carries out his campaign in states and his utterances, regretfully are reflective of his penchant for comic books. What else can be said about his comment, “If Barak Obama a black, can become US President of USA, why not me, a tribal?” making no distinction between an executive President elected directly by people and a nominal President elected by an electoral college of legislators in a Parliamentary democracy.
Moreover, Sangma’s claim that a tribal should get a chance does not carry conviction as he himself had opposed the candidature of fellow tribal G.G.Swell  in the nineties. That he did nothing for the welfare and progress of tribals whenever he was in power as pointed out by Meghalaya Chief Minister Mukul Sangma saying that ‘P.A.Sangma can’t behave like a rogue element.’
There is a phrase in Tamil, ‘சேர்க்கை தோஷம்’ which means the ‘malignant influence of the companion.’ Was it not Jayalalitha, thinking that she can also emerge as ‘king maker’ rivaling Kalaignar, who proposed the candidature of Sangma and spoke to other leaders of parties like L.K.Advani, Prakash Karat and A.B.Bardhan and none of them, responded positively. People would not have forgotten that Jayalalitha had the temerity to disown her own signatures on the documents relating to TANSI land purchase in the court only to be proved a lie by forensic verification. So the candidate proposed by her also contended that the signature of Pranab Mukherjee on his resignation letter to Indian Statistical Institute was not his.
Unable to muster support for giving a healthy contest against the UPA candidate, his principal opponent P.A.Sangma, aided by the most shady person in Indian political scene Subramanian Swamy, raised objection, to the nomination papers with the Returning Officer on the ground of ‘holding an office of profit’ as the Chairman of Indian Statistical Institute, Kolkata, which in fact carried no emoluments. But when his resignation letter already submitted was filed the next day, the Returning Officer and Rajya Sabha Secretary General, overruled the objections to Pranab’s candidature after finding them ‘untenable’ and ‘lacking merit’ and in light of Supreme Court order. Then the supreme Court also quashed the PIL (succinctly driven by the BJP, of course) against the nomination of Pranab Mukherjee and also reprimanded the petitioner for wasting the court’s  time and imposed a fine of Rs.50,000.
But the trio Sangma-Swamy-Satya Pal Jain (Sangma’s counsel of the BJP) moved to the Election Commission seeking its intervention for a fresh probe into Sangma’s objection against the candidature of Pranab, leveling new allegations that he was still holding two more offices of profit’ – as Vice President of Birbhum Institute of Engineering and Technology and Chairman of Rabindra Nath Society, which forms the Rabindra Nath University. Besides raking up the issue of Pranab’s signature on the resignation letter, they also said MGK Menon President of ISI, was not the appropriate authority to accept the resignation of the chairman.
It was strange that Sangma and his supporters in this desperation, could not find a viable economic organization offering Pranab any office of profit. His connection with three educational societies has been cited without any proof behind their claim. The Sangma camp did not rule out moving an election petition in the Supreme Court if it failed to get a favourable order from the Election Commissioner.
The issue is likely to create an embarrassing situation after the results for the President’s election are declared and if Pranab wins, the outcome could be challenged in the Apex Court. As per the rules of the election, once the Returning Officer has held the nomination valid, the poll can only be challenged after the outcome. The BJP, which is supporting Sangma, also seems inclined to make it a legal issue after the declaration of the results. The former Finance Minister is a hot favourite to win the face to face showdown. But the BJP, which is backing Sangma in the divided NDA with the JD (U) supporting Pranab, is likely to keep the matter alive.
The Congress managers like so many occasions prior to this seem to have bungled. They could have easily kept all the papers ready on the stipulated day of the scrutiny and ensured that no accusations were made against their Presidential candidate. With numbers favouring Pranab overwhelmingly, the nomination process should have been monitored in such a manner that no controversy cropped up at any time. But even now, the managers should anticipate an election petition later and start taking remedial measures.
The Congress camp is particularly alerted by the fact that all three ‘office-of-profit’ charges the BJP and their candidate P A Sangma have levelled against Pranab Mukherjee relate to organisations located in Kolkata or other parts of West Bengal. So, the Congress needle of suspicion is clearly pointing eastward. Some Congress leaders claim that those who have been neatly outmanoeuvred by them in a frontal war are bound to be routed in a proxy war too. But then, the Look-East policy has always been a Congress specialisation.
President elections do tend to become ugly and there have been also occasions in the past when accusations have been hurled against the candidates by the Sangh parivar. In 1967 when the acclaimed scholar and educationist Dr Zakir Hussain faced a challenge from former Chief Justice Subba Rao, he was accused by the Bharatiya Jana Sangh and some other Hindutva parties of being anti national. The Organiser and Mother India, two Hindu communal magazines came up with stories showing him in poor light. The charges, which were most absurd and had no basis did muddy the polls. In 1969, the most historic election for the President took place after the untimely demise of Dr Zakir Hussain when Indira Gandhi decided to pit the then Vice President V.V.Giri against the Congress nominee and Lok Sabha Speaker N.Sanjiva Reddy.
The election, which resulted in a narrow win for Giri, launched Indira Gandhi as the super star of Indian politics but led to an election petition against the winner. Giri had to appear in the Apex Court to give his version in an election petition. Fakhruddin Ahmed’s elevation as the President in 1974 led to the charge that the status of the head of the state had been lowered. Similar charges were made when Giani Zail Singh was made the President in the early eighties. During the UPA regime when Pratibha Patil was chosen as the first woman president, her opponents described her as someone who lacked the stature of being the first citizen. The short point is that the President polls always have led to some sort of controversy or the other but in the present case, the nomination process for Pranab should have been handled in a deft manner and not so clumsily.
Commenting on development  the newspaper ‘Oman Tribune’ said, “Jayalalitha sought to play the role of a king-maker by joining hands with her Orissa counterpart Naveen Patnaik to issue an appeal in favour of Sangma. Obviously, Jayalalitha did not want a fellow Tamil like Kalam to become the president once again. After all, he has a pan-India fan following which she cannot match. Much the same reason prompted Mamata Banerjee to oppose Mukherjee. In doing so, she is oblivious of the wrong message she sends to the people of West Bengal. The Bengalis are yet to reconcile to the fact that not a single Bengali has so far become president, vice-president or prime minister. There is no certainty that the Trinamool Congress MPs and MLAs would vote for Sangma, as the voting is secret and no disciplinary action can be taken against those violating the party whip. By supporting Mukherjee, the CPM wants to exploit regional feelings against the Chief Minister.”
As things stand, Mukherjee is assured of at least 60 per cent of the total votes. He has personal equations with a large number of political leaders which will help him garner more votes.
In a democracy, elections are unavoidable. Every citizen fulfilling certain criteria has a right to contest for the highest post in the country. But the present contest is meaningless. If Mukherjee wins, it will be the victory as much of the Congress-led UPA as it is of the CPM and the Shiv Sena, not to mention the SP and the JD (U), all of which do not see eye to eye on any issue.
The BJP did not have any great principle to uphold by supporting Sangma, except its anti-Congressism. The President does not enjoy any power of his own, as he is bound by the advice of the Cabinet, except when no party or pre-poll alliance obtains a clear majority. On such occasions, he can exercise some discretion in inviting a leader to form a government.
Given this background, it should have been possible for both the UPA and the NDA to reach a consensus on a candidate. Alas, pettiness of leaders like Mamata Banerjee and Jayalalitha stood in the way.
As much as Pranab Mukherjee maintains in this campaign the dignity and decorum of the office for which the election is held, so much so Sangma and his camp are flouting all norms of decency and propriety as if this is an election to a panchayat ward. In the process Sangma has earned ridicule for his demonstrative gestures and wrath for his unrestrained utterances.
Opposition backed presidential candidate P.A.Sangma was caught offgaurd at his press conference at the state Bharatiya Janata Party headquarters in New Delhi on July 8 when asked why his special website http://www. sangmaforpresident.com was carrying the national emblem of India on the header and he responded to this by saying “it should not be there” and it was removed thereafter.
Opposition BJP backed presidential candidate and former Lok Sabha Speaker P A Sangma came under attack from a Chennai based disability rights body for his remark that India should have a President who is not blind, dumb and deaf.
The Federation of Tamil Nadu Physically Handicapped Associations demanded withdrawal of his remark, saying that it denigrates the capabilities of disable people. “We demand immediate withdrawal of his words denigrating the capabilities of disable people and not accepting disability as part of diversity,” federation president P Simmachandran said. “If he does not withdraw his comments then we will protest against him when he visits TamilNadu.”
    Simmachandran said Sangma’s remark was against the spirit of the Disability Act,1995. “It is very unfortunate that a statesman of Sangma’s stature, pitching himself as a candidate of the tribal community, a vulnerable section of the Indian society, has made an adverse remark on the capabilities of the disable people,” he said.
The National Platform for the Rights of the Disabled in Delhi also had raised objection to Sangma’s comments. “It reflects very poorly on a candidate aspiring to the highest office of the country,” it said.
One can only hope that in the coming days, the polls do not see any kind of serious charges being made against the principal contender. After all, one of them will be the President ultimately. But there are indications in political circles that the present poll will have its share of ugliness, contributed by the trio – Sangma, Swamy and Satyapal.

Prisons can’t deter, but Enthuse DMK workers


Once again the history of the DMK has been established. Threats of prolonged imprisonment and harassment failed to deter but enthused the spirited rank and file of the Party, who with verve and vigour offered to court arrest on July 4, in response to the ‘Jail Bharo’ stir call given by the Executive Committee of the Party on June 20.
Two lakh 32 thousand 797 DMK men and women in all districts in Tamil Nadu courted arrest on the day. As Kalaignar said the response to the call was more than expected and it was a massive participation of spirited DMK cadre. They tried to bring down the number of participants in the agitation by threatening of 15 days remand, and lodging in prisons in other states. But none were frightened or worried. Every participant had given signed undertakings that they would not seek bail.
The DMK did not seek the stir but it sought the Party. This agitation was not created by the Party impelled by the opposition to the regime, but thrust upon the Party by the rulers. This ADMK regime is a repository of falsehood and deceit. The invocation of Goondas Act against respectable DMK functionaries including senior District Secretary Veerapandi Arumugam was a direct attack on the dignity and prestige of the DMK. It was a struggle to defend the self-respect and reputation of the over-six decades old movement. In the history of the Party, the leaders and workers never got frightened by prisons.
It was in 1938 that Party founder Arignar Anna was first imprisoned in the anti-Hindi agitation. He was sentenced for six months imprisonment. When journalists asked him about his feeling on going to prison for the first time in his public life, Anna said, he was as delighted as a married young woman on her first conceiving.
During the spontaneous Anti-Hindi agitation of students in 1965, the State government accused Kalaignar of instigating it and lodged him in solitary confinement in Palayamkottai prison. After visiting Kalaignar in the prison Anna said in a public meeting there, “If at all there is a holy shrine for the DMK, it will be Palayamkottai prison where my younger brother Karunanidhi is lodged.” Not only in the history of India but in the history of the world, only the DMK has the history of calling prison as holy shrine. Only the DMK has that reputation.
During the Emergency period in 1975-76, over 500 DMK functionaries and workers were detained in various prisons in Tamil Nadu under Maintenance of Internal Security Act (MISA), which earned them the surname ‘MISA’. The Party functionaries lodged in Chennai Central prison were brutally attacked inside their cells in which former Chennai Mayor Chittibabu succumbed to injuries, caused in his bid to save young and newly wed M.K.Stalin from attacks.
It was in prison that DMK men were first sworn in as Ministers. Kalaignar led the stir for naming Dalmiapuram railway station as ‘Kallakudi’ by stopping the train by laying his head on the rails along with Sakthi, Kasthuri, Kumaravel and Kulandaivel. Over 400 were arrested and lodged in Tiruchi prison. Kalaignar was prisoner No.5779 in that jail. The food supplied and hygienic conditions in the prison were awfully bad. Kalaignar, then, constituted a ‘Ministry’ in the prison. In fact, that was the first Ministry formed by Kalaignar. The portfolios allotted to the Ministers in the cabinet formed by Kalaignar in Tiruchi prison were:
Food Minister : Raama Subbiah
Home Minister : Mullai Sakthi
Health Minister : Buhari Sahib
Local body Minister : Aiyavanallur Velu
Chief Secretary : Venugopal
It is this Kalaignar, who even celebrated and enjoyed imprisonment, who now gave the call for ‘Fill the Jail’ agitation to DMK rank and file.
Writing in Murasoli on July 2, Kalaignar said that though he was not enlisted to take part in the agitation, his heart and soul would be with those who were jailed.
“It’s my desire to be part of the peaceful jail bharo agitation. I am not used to assigning someone else and keep off even from a protest meeting. I participate in all the protests and have often been sent off, but never been the one to send others off,” he said.
Asking the cadres to teach a lesson to the ruling party, he said that senior leaders should coordinate and work unitedly to make the agitation a great success.
Immediately after the executive committee meeting, Party district secretaries convened meetings of functionaries at all levels and decided upon the places of picketing and those who would lead in every point. All these reports were published district wise in ‘Murasoli’. There are 35 districts (including city districts), 385 panchayat unions, 586 townships and 125 towns, in which lists of volunteers to court arrest were prepared and also wardwise lists for nearly one lakh wards in Tamil Nadu were prepared. In Chennai, there are 200 wards and picketing were held in 16 points.
Public meetings and street corner meetings to explain the resolution of the Executive Committee’s meeting were held in all districts in which DMK Headquarters functionaries, former Ministers, MPs, MLAs and Headquarters speakers addressed. Kalaignar addressed the meeting on July 1 at Tambaram.
Former Ministers, DMK frontliners, functionaries, MPs and MLAs, representatives of local bodies and volunteers numbering over one lakh registered their names for participation in the stir. In total there are 9 central prisons and 134 sub-jails are there in Tamil Nadu in which upto 25,000 prisoners can be accommodated. Already there were 18,000 inmates in the prison and additionally only 8,000 can be accommodated. There are facilities for food, drinking water, medical facilities and hygiene and toilets only for 25,000 inmates, beyond which prison authorities could not fulfill the requirements.
The State government was in a quandary as there was no provision in law for converting and detain prisoners in halls, community centres etc, outside. In that case, basic facilities like food, drinking water, medicine and toilets could not be arranged where Human Rights Commission will have to intervene. Moreover there were no sufficient prison guards to protect them and there was no provision for utilizing local police for protection of the detained.
For the DMK neither agitations, nor arrests and imprisonments are not new. Its functionaries and cadre had faced detentions under MISA, TADA, POTA and Goondas Act and undergone convictions.
Kalaignar repeatedly stated that this agitation was not only against the suppressive measure of the ADMK regime but also against its anti-people measure and aimed at putting an end to the sufferings of the people.
As the Party Treasurer Thalapathi M.K.Stalin said the reason for such an uprising among the rank and file of the Party was not the DMK, but the ruling ADMK, the police in the service of ruling party and some newspapers eulogosing the rulers. Because they carried out hectic campaign in the past one week than the DMK. That should serve as a lesson to the ruling party and its sub-servient sections of the media – the DMK will rise like the ball which rises above the more it is hit.
To a cynical question of an ‘enlightened’ English media reporter whether the agitation had also provided an opportunity for the DMK for soul searching as many DMK leaders “went too far” in their activities when the party was in power, Rajya Sabha member Tmt. Kanimozhi correctly said, “It is not a moment for soul searching for the DMK but it is time for soul searching by the press and public”, who by harping on the past either refuse or conveniently ignore to see the horrendous regime in Tamil Nadu now and the sufferings of the people.
Whether we can expect any change in the attitude of Jayalalitha or not, the DMK agitation has definitely taught a lesson to her and also to the servile media!

‘Scamania’, ‘scamedia’?!


 “A Nation of Cynics? – The National Psyche Seems To Believe The Most Ludicrous Charges Against The UPA Govt”
Do not search in dictionaries for the meanings of these words. In economics, we had two words ‘inflation’ and ‘stagnation’, the first defines ‘the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. Central Banks attempt to stop severe inflation, along with severe deflation, in an attempt to keep the excessive growth of prices to a minimum; and the second word indicates ‘a period of little or no growth in the economy’. But when the two phenomenon occur simultaneously at a time, (i.e.) when the situation in which the inflation rate is high, the economic growth rate slows down, the unemployment remain steadily high, it is called ‘stagflation’. It raises a dilemma for economic policy since actions designed to lower inflation may exacerbate unemployment, and vice versa. This can only happen under unusual circumstances. The term ‘stagflation’ was coined by economists in the 1970s to describe the previously unprecedented combination of slow economic growth and rising prices.
Now during the past three years, the way in which the media [possibly the office of the Comptroller and Auditor General (CAG) working in tandem with it] is systematically creating a national psyche, which is ready to believe the most ludicrous charges against UPA the government. The media smell some ‘scam’ in everything happening in the normal course and people are tuned to buy their sensational stories given by them. If the term ‘mania’ means obsession and the people are ready to believe all these ludicrous stories of ‘megascams’, then the term ‘scamania’ can be coined to describe the situation obtaining in India, created by scam-crazy media, ‘scamedia!’
The Comptroller and Auditor General (CAG) has joined the ranks of media moghuls and Gandhi topi-wielding Anna Hazare brigade to trigger a fresh burst of competitive activism against the ruling coalition.
Routine leakages of CAG reports on astronomical 2G presumptive losses, the ISRO-ANTRIX deal losses, and now the coal blocks allotment losses are causes for celebration among an opportunistic opposition and a sound-bite hungry media. Immediately there is hue and cry over ‘spectrum scam’, CWG scam, ISRO-ANTRIX scam and coal block allotment scam, presumptive losses turned scams, with nobody specifying so far who are the gainers.
Experts have begun to push for a more layered debate on issues related to allocation of natural resources. The interventions by the CAG as well as the courts are not necessarily the basis for an informed debate, they say.
'There can be a debate provided the basis for that debate is sound. I am questioning the very basis of this illiteracy that has been exhibited by the CAG in calculating the alleged losses in the allotment of coal blocks. The fact that the leakage of such a report may be linked to market manipulations that should ideally be probed by the SEBI is a different matter. What I want to know is how the CAG arrived at this figure in the first place. This speaks of an astounding economic illiteracy,' said Surjit S. Bhalla, chairman of a market advisory firm. According to Bhalla, the CAG coal loss figure is Rs.10.7 trillion (or lakh crore) at 2011 prices.
Besides the possible anomaly in the CAG figures, the larger concern is the readiness with which state institutions and individuals are being de-legitimized largely by ‘vigilante justice’ offered by those who are 'economically and politically illiterate'.
According to Leader of Opposition in the Rajya Sabha Arun Jaitley, there has to be a debate about whether natural resources should be auctioned or there can be a better mechanism to ensure transparency as well as affordable pricing pattern for the poor.
While the Opposition MPs do not attack the courts and the CAG publicly for the obvious reason of not being seen as batting for the UPA, the government has been fairly open about its contempt for such 'transgressions' by the CAG as well as the courts. Witness the stern warning to the Supreme Court by the Department of Telecom in the 2G review petition seeking reversal of the court judgment: 'The judgment, in respect of the policy, is directly contrary to the settled law, as laid down by the Supreme Court, that the essence of policymaking and governance is the weighting and balancing of different values and considerations, which is the role of the executive.'
According to senior counsel Rajeev Dhavan, tendency of the government spokespersons to 'shoot from the hip' and activism exhibited by the courts and the CAG has distorted the debate about natural resources and their use.
'The 2G judgment was the first and the CAG is the second joker in the pack. We need to look at resources, revenue and the fairness with which the government monitors the use of these resources. Pricing and revenue is an issue but the state needs to take into account how competitive bidding affects the end use. The CAG is an overseer of government expenditure but it has attributed to itself the role of an activist. The casualty of such posturing is informed debate,' said Dhawan.
As signaled by Arun Jaitley's caveat, discussions in the Opposition quarters center around the latest panacea for all evils that the courts and the CAG have offered vis-à-vis allocation of natural resources via auction. The Supreme Court offered it for all natural resources in the Spectrum 2G allotment case, a suggestion being violently opposed by the government. And the CAG is invalidating the allotment of coal blocks and discovering a ‘scam’ based on the same allotment criteria which is now the law of the land. The Mines and Minerals (Development and Regulation) Amendment Act 2010 has now allowed the state governments to grant a prospecting license or mining lease for coal and lignite to private companies through auction by competitive bidding.
'Would you advocate auction of water? Or auctioning air for harvesting wind-power energy? Would that not result in the endproduct being based on equally competitive pricing pattern? Is that a just and fair method for the welfare state?' asked a senior opposition leader.
But until the media put an end to this sensation mongering and start playing an objective, meaningful and constructive role, the complex layers of such arguments will not find any echo among people who are fed with dosages of cynicism day in and out.
Amidst the hue and cry over the so-called ‘spectrum scam’, nobody seem to have taken note of the revelation about the CAG's credibility taking a beating.
Documents revealed through RTI enquiries cast serious doubts on the credibility of the Controller and Auditor Generals’ 2G report. It now appears that the Director General who conducted the audit was unable to quantify the loss or put it as low as Rs 2,645 crore but was overruled by his bosses who pushed the alleged loss all the way to Rs 1.76 lakh crore. Worse, file noting reveals that an attempt was made to silence the Director General.
Congress MP and PAC member Sanjay Nirupam discussed with CNBC-TV18’s Karan Thapar what all of this abounds to. Below is a verbatim transcript:
Q: As a member of the PAC how do you respond to the revelation that the Director General who did the Draft CAG report on 2G did not quantify the loss due to the decision not to auction spectrum and at the most suggested that the loss could be Rs 2,645 crore which is almost 70 times less than the Rs 1.76 lakh crore figure?
Nirupam: “There is no doubt that it is really a shocking revelation. I have already prepared a letter which I am going to send to Dr Murli Manohar Joshi who is the Chairman of PAC. I am going to ask him to setup an enquiry within PAC to look into the working of CAG. There is no doubt in the fact that CAG's credibility is getting eroded day by day.
As far as this 2G issue is concerned, how can the mathematics not be accurate? The way CAG has basically highlighted the presumptive loss of Rs 1.76 lakh crore, is nonsense, it's a senseless figure. Now it is coming out that there was a difference of opinion in CAG only. I am very happy that one channel has got access through RTI about this final information that the whole loss was not exactly more than Rs 2,645 crore.
Where is Rs 2,645 crore and where is Rs 1.76 lakh crore? The way CAG has worked in the last couple of years is nothing but it is being used politically by political parties. That is why the CAG report before it has been tabled in Parliament; it has been leaked to the media. I really condemn this kind of trend.”
But scam-maniac media, by and large, systematically buried this vital information on the lack of credibility of the CAG’s report on 2G spectrum allocation.
The national psyche seems ready to believe the most ludicrous charges against the government
Certain sections of the press have quoted a draft report of the CAG in recent weeks hinting at ‘crony capitalism’, creating some speculation in public mind as if there may be another mega scam in our midst. According to these reports, quoting the draft CAG report:
• The government has gifted away Rs.1.64 lakh crore to the GMR group, the developers of Delhi International Airport (DIAL).
• The government gave away the airport land to GMR at a measly Rs.100 per acre per annum, when the land is worth thousands of crores.
• Ministry of civil aviation, and later Airports Economic Regulatory Authority (AERA), granted post-contractual benefits in the form of airport development fee (ADF) to DIAL at the cost of passengers.
• The government granted unilateral rights to DIAL for extension of the concession period by 30 years without renegotiation.
Rebutting the allegations and explaining every detail, V.Raghunathan, the CEO of GMR Varalakshmi Foundation wrote in ‘The Economic Times’ on June 23, the following:
“For one closely associated with the social responsibility arm of the group at a senior level, these are troubling issues. One can hardly sleep in peace and go about one’s business unconcerned without checking the veracity of these allegations. So, this writer dusted off the finance and accounting hat to look deeper into these issues. And if the findings come from an ‘interested party’, one offers no apologies for presenting the facts, as the issues at hand concern the country at large. What could be the possible basis for the estimate of a Rs.1.6-lakh-crore gift to GMR? GMR leased some land in 2007 at about Rs.1.58 crore per acre per annum for 58 years at an annual increment of 5.8%. This sum, over 58 years, adds up to nearly Rs. 690 crore (= 1.58 + 1.67 + and so on for 58 years, increasing at 5.8% year-on-year). Since GMR was given about 230 acres to develop, as one of the terms of revenue-share enhancement as per the open bid document, the total amount works to about Rs. 1.6 lakh crore. This obviously ignores time value of money. When discounted at 14%, the amount comes down to a mere Rs. 19 crore per acre, or about Rs. 4,500 crore, for 230 acres, of which 46% in any case goes to the government.
Now, in the last six years, DIAL paid out Rs.2,935 crore to the government as its share (46%) of the revenues. In 2011-12 alone, DIAL paid Rs.704 crore, and some quick computation on spreadsheet shows that Rs.704 crore growing at 5.8% per annum for the next 54 years adds up to nearly Rs.2.4 lakh crore. Thus, if the government was gifting away Rs.1,60,000 crore over 58 years to GMR, GMR would be returning the compliment with Rs. 2,40,000 crore to the government during the same period. And over and above this, the Airports Authority of India (AAI) is entitled to 26% share of dividends. The truth is that sums added over long periods without factoring the time value of money can look absurdly silly.
On the next point, while it is true that GMR was ‘given’ land at Rs. 100 per acre, it turns out that this was only a notional amount to effect the conveyance deed, and hardly reflective of the rental value. The land was simply given to the developers to operate and develop the airport and the associated infrastructure. Had the land been charged at market value, for instance, surely a bidder would automatically adjust that against a reduced top-line sharing? That brings us to the third point, the airport development fee (ADF). Was it a postcontractual benefit accorded to GMR? The government has been pilloried so badly in recent times that any attribution to the CAG seems to put the government and whoever they associate with automatically in the dock.
However, the facts appear to be as follows.
ADF is permitted under Section 22A of the AAI Act, 1994. The relevant Section was enacted in 2003 and was made available to all the bidders in 2005. Even though it is true that the operation, management and development agreement is silent on the ADF and allows only for debt, equity and user development fee (UDF) as sources of funds for the airport, the bid document also states that the bid is subject to various relevant laws, including the AAI Act, 1994.
In fact, the Supreme Court upheld the levy of ADF at Delhi airport, vide its order dated April 26, 2011, in response to civil appeal number 3611 of 2011. What is more, AERA, after detailed technical and financial audits and reviews, had also vetted the levy of ADF in January 2011.
But why was ADF levied? One understands that when the project cost had escalated for various reasons, and GMR approached AAI for additional injection of equity, the AAI was unable to do so. And that is when the ADF clause in AAI Act, 1994, was invoked by the government, even though ADF was not explicit in the original bid document. GMR itself would have been happier with additional equity, a government-guaranteed debt or higher UDF.
Lastly, why was GMR given a unilateral right to extend the concession period by 30 years? Well, this was part of the terms of the bid, applicable to all bidders. Such longterm leases are common internationally. Besides, had the lease term been shorter, or had the government held the right in its own hands, the bidders would simply have adjusted the revenue share downwards or not bid at all. Delhi airport is an impressive achievement, achieved under very difficult odds. Not only was the airport completed in a record time of 37 months, it was a face-saver for the Commonwealth Games. But what is tragic is that such unfounded accusations may give public-private partnership itself a bad name. Are we turning into a cynical country?”
The sections of the media, which reported this story of the ‘mega scam’ of the government ‘gifting away’ Rs.1.64 lakh crore to the GMR group, did not care to follow basic journalistic ethics of seeking the response of the group and publish it along with the report to enable the people draw the right opinion.
The media’s negative role in breeding a nation of cynics and sensationalism is gracefully admitted by the leading national daily ‘The Hindu’ on June 29 under the heading ‘What’s in a name? A life’ on the sensational goof up made by the media on June 27 on the release of Indian prisoner in Pakistan:
“No excuses, no nitpicking. The entire media got the ‘Sarabjit to be released’ story wrong — including The Hindu, in its early editions before we stopped press at midnight to make the correction. If anything, the Sarabjit/Surjeet Singh mix-up has held a mirror to the beast that the media has become: easily excitable, know-it-all and supremely confident to the extent of being tone deaf even when Pakistan’s Presidential spokesman Farhatullah Babar was clearly saying on Indian television channels — and by extension to the tuned-in print media — that “Surjeet Singh” was entitled to be released. The media stands exposed but still does not have the grace to admit it was wrong, let alone introspect or apologise for giving false hope to the family of a condemned man. Worse, a section of the media has topped it all up with theories galore on why Islamabad made the “midnight switch”. Ironically, because of the nature of the story and how it unfolded, Sarabjit’s family at least got to air its disappointment. But what of all those mistakes that are being made by the media in the rush to be first with the news? The insensitive line of questioning to bring out raw emotion on camera, the crowding around rescue operations for a “quote”, or ruining investigations by breezing into crime scenes? In this particular case, there is the fig leaf of an excuse in the two names sounding similar but the media was clearly not listening and kept repeating ‘Sarabjit’ so often that on at least one TV show, Mr. Babar himself got confused and used that name for the man he had referred to only seconds earlier as ‘Surjeet.’
In the India-Pakistan context, the role of the media on both sides has been particularly dubious; leading the pack in baying for blood at the smallest of irritants even while talking Track-II, overly obsessing with certain issues, and allowing emotions and rhetoric to determine the narrative instead of informed discourse. To be fair to both governments, the Foreign Offices in recent months have been restrained in the face of provocation from the media. If Islamabad was at pains to explain to the local media that granting ‘Most Favoured Nation’ status to India was not equivalent to making it Pakistan’s ‘Most Favourite Nation’, officials of the Ministry of External Affairs sought to drive home the fact that both Kashmir and the Mumbai terror attacks got equal play in the last round of Foreign Secretary-level talks. Both governments have been trying to create space for each other to navigate the slippery route to peaceful co-existence and cooperation, made all the more treacherous by the media which has allowed shrill voices to flourish to the detriment of sane and studied opinion. Mercifully, the media-created fiasco that made the Pakistan government — already under siege for other reasons — look bad did not stall Surjeet Singh’s release. His return should now set the stage for the repatriation of all Indian and Pakistani prisoners who remain incarcerated across the border despite completing their sentences.”
It is time the media, print and visual, introspected itself whether it’s disseminating information in the true sense or adding unwanted colour and its own perception to get attention. Sensationalism has become the order of the day. Many sections of the media are obsessed with false reports. Vying with one another to be the first to report and in competitive sensationalism, media houses display insensivity to human sufferings, particularly during major calamities and damages caused to the national psyche, when issues of national importance, public order, governance and economic development are discussed/ reported. It is time journalism became true journalism again – reporting, reviewing, analyzing and acting as a bridge between the rulers and the ruled in unbiased manner. What we see today is more of ‘investigative journalism, reporting questionable information and drawing hasty conclusions. It should go back to the basics of checking facts before publishing/ reporting news.
In contrast to the media’s attitude towards the UPA government at the Centre, making mountains of mole hills and concocting stories out of nothing, their attitude towards the anti-people and anti-democratic regime of Jayalalitha in Tamil Nadu, is shamefully cowardly, submissive and sycophantic. The reasons are obvious: the rulers at the Centre are seasoned democrats, while the one in the state is an unchanging autocrat. Braving democracy and capitulating to autocracy is not the creed of free and independent journalism.
The fact that the media plays a significant role in a democracy cannot be denied. But it stands badly exposed now. In many cases, the media instead of informing and creating public opinion, creates confusion and distorts public opinion. It should bear in mind that it occupies an important place in a democracy.
In the words of MalcolmX, the famous American leader, “The media’s the most powerful entity on the earth. They have the power to make the innocent guilty, and the guilty innocent, and that’s power. Because they control the minds of the masses. It is, therefore, important for the media to be responsible.”