Thursday, November 10 2005 16:39 Hrs (IST) - World Time -

New Delhi: Observing that the Manmohan Singh Government did not seem keen to remember its relations with Iraq due to its 'new found dependence' on the US, Communist Party of India (CPI) Marxist (M) has said the Congress 'need not be apologetic or defensive'about its ties with that or any other developing nation.

However, the government has taken the 'correct step' in forming two probe panels to look into the charges in the Volcker Commitee report which would help to counter the charges against Congress and Union Minister Natwar Singh, CPI-M General Secretary Prakash Karat said in an article in the forthcoming issue of 'People's Democracy'.

Maintaining that the link between Hamdan Export, Masefield AG and their alleged connection with the 'non- contractual beneficiaries' could be uncovered, he said, "The issue must be clarified is it the case of an illegal deal through political patronage or a business transaction which is like the other contracts entered into by Indian business enterprises".

Karat said "It should be noted that Natwar Singh is being targeted for leading a Congress delegation to Iraq in 2002 and opposing the sanctions and the invasion of Iraq".

Pointing out that the Oil For Food Programme (OFFP) was financed by Iraqi money though the then Saddam Hussein regime had no access to these funds, he said, "The US got its hands on this development fund" which grew to 20 billion dollars in 2004 after the programme was wound up and the funds transferred to Development Fund for Iraq which was to be administered by the US-backed coalition forces.

"US companies like Halliburtun and Bechtel have made a killing through contracts for the reconstruction programme. This is a scandal of huge proportions which the United Nations will not have the courage to enquire into", Karat said.

The CPI(M) leader said the OFFP had provided a 'tenuous lifeline' for the people of the country which experienced 12-year long economic blockade backed by the US.

While the OFFP was financed by Iraqi money, the then Government had no access to these funds.

"All the money from the sale of Iraqi oil went into an escrow account set up by he UN. Each contract for the humanitarian goods bought had to be approved by the UN," he said.

He said the Saddam Hussein regime tried to generate revenue by imposing surcharges on the oil contracts and by levying inland transport tax and after-sale service tax on the goods supplied by it.

"For those who opposed the sanctions, Iraq had every right to do so. For those who supported this outrageous assault on Iraqi sovereignty and the Iraqi people, these were 'kickbacks'. The Volcker Committee takes the latter view", Karat said.

He also referred to the case of British MP George Galloway who had opposed Britain's role in Iraq.

"He was accused of having received allocations of oil and money from Saddam Hussein," he said.

"Last year, the Daily Telegraph and other newspapers had to pay damages for defamation, when it was proved in court that the documents produced from Iraqi sources under US occupation were forgeries", Karat said and asserted that the Volcker report therefore 'cannot be taken at its face value'.