Foreign Minister Natwar Singh's resignation does not signal the end of the UN's Volcker report crisis. It indicates the start of a bigger crisis. Natwar Singh's private interaction with his party was stormy. How could the government dump him when the Congress party itself has been named in the same fashion in the same report? Natwar Singh's integrity will be adjudged only after the truth or otherwise of the Volcker report is verified. But his logic was impeccable.
Bhim Singh of the Panthers Party could have become a beneficiary of the oil-for-food programme. He didn't. He said being a non-contractual beneficiary was not illegal. He did not dispute the facts of the Volcker report. But he did not want Natwar Singh to resign. He wanted him to speak up. "Why wait to make a statement in Parliament? He should speak now as I have done." He was right. The Volcker report itself mentions that beneficiaries may not have known of the illegality in the transaction. It was the Iraqi government, beleaguered by sanctions, which violated commitments to UN in order to raise funds. That is why another beneficiary, British MP George Galloway, could face the criticism of US Congress. He never hid the source of his money, which he used to fight elections. He was transparent and he broke no British laws.
But Indian laws are different. Galloway's happy situation does not obtain either for Natwar Singh or the Congress. Both have flatly denied the allegations contained in the Volcker report. If the report proves otherwise, they will be seen as liars. They could be damaged not only morally but also legally. If they were in fact beneficiaries, they could have received the money only through undeclared foreign accounts or through hawala transactions. Both are illegal.
If the Congress party itself is found to have used foreign money for elections through the actions of an office-bearer or representative, it can, for a start, be derecognised by the Election Commission. It doesn't require much imagination to realise the far-reaching consequences of such a development. Natwar Singh and the Congress must sink or swim together. The minister had threatened that he could recommend revising the pro-US Iran vote. That probably was the last straw which persuaded the PM and Sonia Gandhi to act.
The full Supreme Court judgement on the Bihar assembly dissolution is expected soon. Add to it the Volcker report. Together, both have the potential to change dramatically the politics of India.
(Puri can be reached at rajinderpuri2000@yahoo.com)
