Wednesday, October 14, 2009

U.S. firms snatch government projects

New Delhi: The UPA government seems to be in danger as it is reported than several of Indian government officials took millions of dollars as bribes to help American companies to secure government contracts. "We are probing the matter," said the Finance Minister Pranab Mukherjee.

Five Ministries are investigating specific charges of bribery against their officials, after the Indian Ambassador to the U.S. wrote a letter to the Centre. The Agriculture Ministry has asked the CBI to investigate allegations that U.S.-based Dow Chemicals paid $200,000 to register three of their pesticides - which are banned in the U.S. According to NDTV, the Prime Minister's Office (PMO) referred the bribery scandal for investigation on June 1 this year. In fact on August 19, the PMO asked for an Action Taken Report from the Department of Personnel and Training, which is monitoring the investigations.

In government circles, the allegations first surfaced in May, when India's Ambassador to the U.S. Meera Shankar wrote to the PMO giving details of U.S. companies that allegedly paid millions of dollars. The Maharashtra State Electricity Board was allegedly paid one million dollars by Mario Convino of Control Companies. Also, Indian Navy and Defence Ministry officials allegedly received bribes to the tune of 7.5 million dollars by York International. Bribes were also allegedly paid to officials of the Department of Revenue to get customs clearances. Indian Railways were allegedly paid bribes by Westinghouse Air Brake technology. "We will take action if some wrong has taken place," said Railway Minister Mamata Banerjee.

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