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Indian FM rejects Iraqi oil-for-food scandal charge
Sat Oct 29, 8:45 AM ET

http://news.yahoo.com/s/afp/20051029/wl_sthasia_afp/uniraqoiljusticeindia;_ylt=AvptBVMHVXAW7S3sacbcb6KyFz4D;_ylu=X3oDMTA5aHJvMDdwBHNlYwN5bmNhdA--

NEW DELHI (AFP) - Indian Foreign Minister Natwar Singh rejected charges made in the Volcker report that he benefited from deals linked to the United Nations' oil-for-food programme for Iraq.

In a statement, Singh also denied any wrongdoing by his ruling Congress party in the 100-billion-dollar programme, which was set up by the UN Security Council amid fears ordinary Iraqis were suffering under international sanctions.

The inquiry committee, headed by former US Federal Reserve chairman Paul Volcker, found that Saddam Hussein's regime manipulated the programme to extract about 1.8 billion dollars in surcharges and bribes while an inept UN headquarters failed to exert administrative control.

According to the 500-page report, 139 companies paid illegal oil surcharges to Baghdad and 2,253 firms gave Saddam's regime kickbacks on humanitarian-related goods shipped to Iraq.

The fifth and final Volcker report at the Independent Inquiry Committee's official website www.iic-offp.org names Singh as a non-contractual beneficiary of four million barrels of oil allotted to a firm named Masefield AG.

In addition the Congress party, India's oldest political entity, is listed as beneficiary of a separate allotment of four million barrels of oil as part of the transactions.

Reliance Petroleum Ltd, a subsidiary of India's largest private sector group Reliance, is also among those who benefited from allotments now under scrutiny.

Singh in his statement said the allegations were aimed at discrediting the Congress, which had friendly ties with Baghdad until 2003 when US-led forces toppled the Iraqi regime.

"I am deeply shocked and outraged by these allegations which are baseless and untrue," Singh said in a statement at the end of his four-day visit to Russia.

"This is obviously part of a continuing campaign to malign the Congress party and its senior leaders and functionaries," Singh said, adding that after examining the report he would meet Prime Minister Manmohan Singh with his explanation.

"My record in public life for the past 50 years and more has been an open book. My personal integrity has never been questioned," Singh said.

Top Congress leader Ambika Soni rallied support for the foreign minister in New Delhi as party spokesman Anand Sharma denied any link between his party and the oil-for-food programme.

"This is absolutely wrong and any leader linked to this scandal is quite capable of defending his untarnished name," Soni, the party general secretary, told reporters.

"We are determined to take whatever steps necessary to safeguard the name, image and reputation of the party," she said as the main opposition Bharatiya Janata Party (BJP) called for an in-depth probe.

"He cannot continue as foreign minister for a minute after this and he must go immediately and the Congress party and the Indian government must set into motion its entire political and investigative machinary to find out the truth of this entire matter," BJP spokesman Arun Jaitley told reporters.