India sets up JPC for telecoms scandal
India’s Prime Minister, Dr Manmohan Singh has agreed to set up a joint parliamentary committee (JPC) to investigate the ongoing telecoms scandal that has hit the country.
The setting up of a JPC was a key demand of the opposition politicians who have effectively shut-down Parliament during the winter season.
According to Dr. Singh, they can ill-afford a situation where Parliament is not allowed to function during the crucial budget session. It is in these special circumstances that their government agrees to the setting up of a JPC.
Dr Singh highlighted the efforts that were being taken to look into the 2G licenses scandal and reminded the politicians that the ongoing Central Bureau of Investigation (CBI) probe is being supervised by the Supreme Court.
The Prime Minister stated that the UPA government is committed to root out corruption and has acted expeditiously and transparently in this direction. Their government believed that as all effective steps were being taken, they might have been able to persuade the opposition not to insist on a JPC. They could not succeed in spite of their sincere efforts.
A Raja arrested over Indian Telecoms Scandal
India’s former telecoms minister, Andimuthu Raja has been arrested, along with two of his former aides, over the telecoms licensing scandal that is claimed to have cost the government as much as US$40 billion in lost license fee revenues.
According to India’s Central Bureau of Investigation (CBI), it arrested A Raja, R.K. Chandolia, Raja’s then personal secretary, and former telecom secretary Siddartha Behura on Wednesday. A spokesman of the CBI confirmed that Raja was arrested due to irregularities in the allocation of mobile licences and spectrum. He will be in court today to face the charges.
Raja is also a senior member of the ruling Congress party and his arrest may destabilize the coalition governing the country after the Party initially supported Raja and only put pressure on him to resign as telecoms minister last November when the scandal became too loud to ignore. The opposition parties have been blocking Parliamentary business until an independent investigation is held into the license scandal.
According to Arun Jaitley, leader of the opposition BJP in the upper house, he only wishes that the Prime Minister, instead of living in denial, had acted three years ago so this huge loss to the public exchequer had not taken place.
It has been estimated that up to 85 of the 122 licenses handed out in 2008 by A Raja could be invalid, while other companies who lost out due to arbitrary changes in the application deadline have themselves not ruled out suing for their losses.
Raja has persistently denied any wrong-doing, saying that he followed government policy and expects that he will prove his innocence.
Mobile Number Portability to hit India today
Prime Minister Manmohan Singh is scheduled to flag off the nationwide launch of mobile number portability today, a move that will allow users to switch operators without losing their phone numbers and will force telcos to improve the quality of services.
According to Telecom Minister Kapil Sibal, he thinks it’s a great step forward for the consumer, as it enhances choice and brings in more competition, because the more efficient you are as a service provider, the more likely that consumers will choose you. MNP services were first launched in Haryana in November last year. Nevertheless, companies like Idea Cellular and Vodafone started marketing their services to subscribers in other parts of the country.
Indian telecom Minister resigns over 2G spectrum spam
Telecom Minister A Raja has resigned. The politician, who presided over the world’s fastest growing mobile market, handed his resignation to Prime Minister Manmohan Singh in New Delhi.
Raja had been accused by the opposition of awarding 2G spectrum for mobile phones in 2008 below market rates, costing the government billions of dollars.
As per A. Raja, he had done everything according to the law and denied any wrongdoing.
According to reports, the telecommunications portfolio will be held by the Prime Minister until a Cabinet reshuffle in January next year.
The low returns from the 2G license allocations were underscored when India in May concluded an auction for superfast 3G bandwidth that raised the government US$15 billion.
The slew of resignations has come as parliament has resumed sitting for its winter session and opposition MPs have been attacking the government over its corruption record.
Orascom Tel must settle debts before deal: Algerian PM
According to Algerian Prime Minister Ahmed Ouyahia, Orascom Telecom must settle all its liabilities before Algeria concludes a deal to nationalize the Egyptian firm’s local unit.
While addressing the parliament, Ouyahia said the liabilities including payment of $230 million in back taxes, $190 million in penalties to the central bank, and settling of a dispute with former employees with pending wages.
As per the Prime Minister Ahmed Ouyahia, Algeria will buy 100% of Djezzy, the local mobile-phone unit of Orascom Telecom Holding, after the Egyptian company settles its debts. Orascom Telecom will have to pay $230 million in debts as well as $190 million in fines for money transfers.
The Country doesn’t recognize any partner other than Orascom with whom they have signed a deal. Sawiris’s Weather Investments SpA has a 51.7% stake in Orascom Telecom.
