The Hindu : Business : `Probe into cos. not warranted'

Online edition of India's National Newspaper
Saturday, Nov 12, 2005

Business

Business

`Probe into cos. not warranted'

Special Correspondent

Volcker report no proof of wrongdoing: Assocham

NEW DELHI: The Associated Chambers of Commerce and Industry of India (Assocham) on Friday urged the Government and other agencies not to view the 130 Indian companies that conducted business with Iraq under the oil-for-food programme with suspicion by taking the contents of the Volcker Committee report as a proof of wrongdoing, as each and every transaction was transparent and as per the terms of the contract. Addressing a press conference here, chamber chief Anil K. Agarwal expressed surprise that while 2,253 companies from 66 countries that conducted business deals under the UN monitored oil-for-food programme had not at all reacted to the references made by the Committee, a "hue and cry" had been made only in India.

Mr. Agarwal said lack of full facts and understanding of the programme could have contributed to avoidable misconceptions, leading to unfair public opinion. The Government should not, therefore, look with suspicion at the track record of these companies, which worked with Iraq under the oil-for-food programme, as this would malign their image and credibility.

In the view of Assocham, these companies fully complied with the rules and regulations prescribed by the UN and the Indian laws while signing and executing the contracts, Mr. Agarwal said.

Assocham, he said, had set up an Iraq Desk to help and coordinate with industry for providing any further information or clarification required by the authorities. The chamber chief said the contract for supplying food to the Iraqi administration was executed after a detailed and thorough examination by the Security Council Committee and LCs opened by the UN appointed bank, Paribas, in New York.

Replying to queries, Mr. Agarwal gave details about the functioning of the UN programme and emphasised that each transaction underwent strict scrutiny and was carried out with full compliance with Indian laws. "There was, therefore, no wrongdoing by Indian companies,'' said Mr. Agarwal.

Asserting that the transactions under the programme were accounted with the Reserve Bank of India and no exporter knowingly or unknowingly paid any kickbacks or any commissions to anyone, he questioned the references made against the Indian companies by the Volcker Committee.

Mr. Agarwal expressed anguish saying that the matter had been blown out of proportion, which had brought a bad name to the Indian corporate sector.

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