Monday, August 7 2006 17:51 Hrs (IST) - World Time -

New Delhi: The Government today (Aug 7, 2006) said it has accepted the findings of a probe that indicts former foreign minister K. Natwar Singh in the Iraqi oil-for-food scandal but gives a clean chit to the ruling Congress party.

The probe findings in its entirety will be handed over to three agencies for further action, the government told parliament in its action taken report on the findings of the Justice R.S. Pathak Inquiry Authority.

The Directorate of Enforcement, the Central Board of Direct Taxes, and the Central Board of Excise and Customs would now examine the report and take the necessary action, the government said in its report to the Rajya Sabha.

"The inquiry authority has absolutely no evidence whatsoever to link the Congress party to the transactions discussed in this report," the Government's report to the upper house said, referring to the probe findings.

"Except for the fact that K. Natwar Singh and Jagat Singh (Natwar Singh's son) belonged to the Indian (National) Congress party, there is not a shred of evidence to link the Congress party to the said transactions," it said.

The inquiry committee was set up on Nov 11 last year to examine the veracity of a probe by a UN-appointed panel that alleged that some individuals, political parties and companies - including those from India - were beneficiaries of the Iraqi oil-for-food programme under the erstwhile Saddam Hussein regime.

"Natwar Singh, mentioned as a non-contractual beneficiary with respect to Contract Number M/09/54, was a beneficiary in so far that the role played by him in influencing the procurement of the contracts had fructified," the action taken report said.

It said while there was no evidence to suggest that Natwar Singh had personally benefited monetarily from the scam that cost him his job last November, there was enough evidence to suggest that he had "misused" his powers.

Speaking to reporters outside parliament, Natwar Singh said he was ready to face any action. "Aage aage dekhiye hota hai kya (wait for what happens next)," he replied, preferring to keep his future course of action close to his chest.

The government said the documents available with the Pathak committee were authentic and reliable and that the transactions of two contracts that were probed were genuine.

In an effort to exonerate the main constituent party of the United Progressive Alliance (UPA), the action taken report said, "The inquiry authority believes upon examinations of all the documents and material which exists before it that no wrong doing can be attributed to the Congress party."

On the issue of whether any Indian entity or individual received any money, any other consideration or paid any money or any other consideration connected with the Iraqi oil-for-food programme, the Government's action report takes the following names without any explanation:

Aditya Khanna, Andaleeb Sehgal, Sehgal Consultants and Hamdaan Exports.

The tabling of the report was not without some drama and both houses had to be adjourned briefly as opposition members held Prime Minister Manmohan Singh responsible for the Pathak report's leak to the media (before it was presented in parliament) and demanded an apology.

Prior to that, the union cabinet met under Manmohan Singh for around 45 minutes and decided to table the government's action taken report, along with the 110-page findings of Justice R.S. Pathak committee, in parliament.