Date:06/05/2007 URL: http://www.thehindu.com/2007/05/06/stories/2007050601261100.htm

National

CBI to investigate Dow's disclosure

Special Correspondent

Preliminary enquiry established the bribing of CIB official

NEW DELHI: The Government has ordered a Central Bureau of Investigation (CBI) probe into a report by the U.S. Securities Exchange Commission (SEC) about the confession of Dow Chemicals that it bribed Indian Government officials for getting their pesticides approved for sale in the country.

Agriculture Minister Sharad Pawar told S. S. Ahluwalia (BJP) during question hour in the Rajya Sabha on Friday that a preliminary enquiry established that a senior official of the Central Insecticide Board (CIB), apart from several State-level inspectors, was bribed. "Based on the findings of the preliminary enquiry, the Ministry has decided to refer the case to the CBI for further action."

The three Dow Jones pesticides cleared by these officials would also be examined to ascertain whether they met Indian standards and if culpability was established, action would also be taken against the U.S. multinational.

Later in the day, Brinda Karat (CPI-M) said during special mentions that officials were paid bribes totalling $ 87,400 (Rs. 38 lakhs) between 1996 and 2001 to facilitate the sale of their pesticides. This disclosure forced the company to pay a fine of $ 3.25 lakhs (Rs. 1.43 crores) to the U.S. authorities.

The company admitted to paying a senior CIB officer $ 20,000 in bribes, which led to the approval of a category-I pesticide monocrotophos in India although it had been banned in several developing countries several years ago.

Another chemical that was approved by these officials had been banned in the company's home country, the U.S., because of its harmful effect on children, she alleged and demanded the blacklisting of the company and taking the products off the shelves.