Probe into MMTC gold imports sought

By Our Special Correspondent

NEW DELHI, JULY 31. The Parliamentary Committee on Public Undertakings (COPU) has called for a ``thorough probe'' by an independent agency such as the Central Vigilance Commission (CVC) or the Central Bureau of Investigation (CBI) into gold imports by the Minerals and Metals Trading Corporation (MMTC).

Passing strictures on the MMTC, it pointed out to the need to inquire into the reasons for importing gold initially from only one foreign bank and the involvement of a Dubai-based trading firm which had links with MMTC employees. It also expressed concern over the decision to import gold from the Union Bank of Switzerland (UBS) despite better offers from other banks and continuing imports from the UBS after signing a contract with the Credit Suisse Bank.

The committee, headed by Mr. Vijay Kumar Malhotra which presented its sixth report to the Lok Sabha on Monday, said the Commerce Ministry had not offered any convincing explanations for rejecting the offer made by the Bank of Nova Scotia for gold supply in 1985. Subsequently fresh offers were invited from five foreign banks despite the Nova Scotia Bank extending its original offer and the latter was allowed to lapse.

The committee was not convinced by the Ministry's reply in the light of later developments in the import of gold. These revealed ``special favours to another supplier of gold who had come into the scene through an unsolicited intermediary.'' The committee felt there was a design behind this move to deliberately scuttle a reasonable offer to accommodate another firm on extraneous considerations. Regarding this firm, it said a senior official of MMTC was on its board of directors. He also shared a common postal address with another woman director on the board of the same company.

The committee also cast doubts over the role of a Dubai-based company, Shataff Trading Company, which was involved in the ultimate bid made by the UBS. According to the Ministry's statement, the Dubai company had recommended the name of the UBS to the MMTC. But the committee sought to know the reasons for the message calling for the offer to the UBS being routed through the Dubai company instead of being sent directly.

It was also concerned over the fact that the file relating to this matter in the Ministry was ``untraceable''. It said the involvement of the Dubai company was ``an unexplained mystery'' and therefore sought an inquiry to find out the circumstances in which the firm was engaged.

The report said the circumstances under which the UBS was selected should be thoroughly probed and a statement should be submitted to the committee within three months. It said there was lack of transparency in the way in which the entire agreement with the UBS was executed compromising the interests of the company.

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Section  : National
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