THE Public Accounts Committee (PAC), chaired by senior BJP leader, Dr Murli Manohar Joshi, prepared a draft report on the 2G Scam which indicted a number of persons serving in the government including the then Union Finance Minister, P Chidambaram. This evoked strong reactions and harsh language from the latter. In fact, Chidambaram went to the extent of accusing Dr. Joshi of instigating a “committee-led coup” and further added that it was a “pretty pathetic attempt”.
Before analysing the reaction of the then Finance Minister, it is most important to understand the relevant portions of the PAC Report. The note sent by the Finance Minister to the Prime Minister on the issue of ‘licensees who already hold Spectrum over and above the start up spectrum’ records the former as saying that “the past may be treated as a closed chapter” and recommending that “prospectively such licensee(s) should pay for the additional Spectrum that he holds”. In view of this, the draft report of the PAC observes that it was “most unfortunate” that the Finance Minister who is entrusted with guarding the public exchequer “pleaded with the Prime Minister to treat the matter as closed”.
Responding to the observations of the PAC Report, Chidambaram went about in his condescending manner and argued that even a person with “average intelligence” would have observed that the note did not deal with entry fee at all. Chidambaram’s case is that the heart of the 2G scam revolves around the entry fee and not about the spectrum-usage charges. Chidambaram’s reaction reflects his failure to fully consider or understand the PAC Report and observations. Indeed, his reaction is based on a half-baked perusal of the draft report and calculated to degenerate public debate. One may now consider Chidambaram’s reaction in light of the facts.
First and most important is the fact that the PAC Report is not a Report prepared by the Chairman, Dr Joshi but by the Secretariat of the Lok Sabha. This by itself demolishes criticism of how the Report was written in two different styles and how the conclusions were those of “one person”. Second is the plea that the Chidambaram’s matter related only to spectrum-usage charges and not to entry fee. Dr Joshi has taken great pain to explain that members of the PAC were in a position to review the Report paragraph by paragraph and make amendments where necessary. Accordingly, Congress members in the PAC could have made these clarifications while they had the opportunity. Instead, these very Congress members, discarding every known democratic norm, created a ruckus, stalled discussion and effectively shot themselves in the foot. Third, in any case, Finance Secretary, Ashok Chawla and RBI Governor, Subbarao, both of whom had been questioned, have accepted the contents of the PAC Report.
Now to Chidambaram’s disparaging remarks on “average intelligence”. Certainly, Chidambaram’s intent was to imply that Dr Joshi was below average intelligence for failing to see that the Finance Minister’s note did not discuss entry-fee. This is absurd and ridiculous. The mandate of the PAC is to assess any financial irregularity or loss resulting to the public exchequer and all matters incidental thereto. Accordingly, if Chidambaram’s suggestion to treat the matter (relating to spectrum-usage charges) as closed for current licensees resulted in loss of revenue, it most certainly comes within the purview of the PAC. Chidambaram was then the Finance Minister and as such vested with public confidence to guard public money and to prevent any undue loss. The slightest failure in doing this makes him deserving of indictment.
Chidambaram’s arrogance betrays a sense of guilt. He would do well to recognise that Dr Joshi is a very senior parliamentarian, far senior to him anyway. Dr Joshi has been the President of a national political party and senior Cabinet Minister in the Vajpayee Government. Throughout his career in public life, Dr. Joshi has conducted himself with thorough discipline and the highest standards of integrity. He has maintained an absolutely clean track record in matters relating to corruption. Of course, Chidambaram, who is still embroiled in the controversy relating to his election victory in 2009, can hardly boast of such a record.
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