-Caveat Lector-

[Could Clinton be going to India to teach them about about
bribery/extortion/kickbacks?]

<http://www.newsday.com/ap/text/topnews/ap530.htm>


Indian Defense Minister Resigns

by NEELESH MISRA
Associated Press Writer


NEW DELHI, India (AP) -- India's defense minister resigned
Thursday as a corruption scandal involving a fake arms deal
secretly filmed by journalists shook the government.

George Fernandes, one of Prime Minister Atal Bihari Vajpayee's
closest allies, said the allegations against him were
''completely false,'' and suggested they were meant to undermine
national security and morale.

''To uphold the morale of our armed forces and prevent further
damage to our national defense, I've decided to resign from
government,'' Fernandes said on state-run television.

The scandal erupted on Tuesday when the Tehelka.com Internet
media company publicized hidden camera videos of party, military
and defense ministry officials accepting money and discussing
kickbacks in a sting operation.

Tehelka.com said its reporters spent months pretending to be
defense dealers and pushing a fake $870,000 deal for hand-held
thermal cameras and other equipment.

The president of Fernandes' Samata Party resigned earlier
Thursday after videotapes had shown journalists, posing as arms
dealers, handing over cash as they chatted with her in the
defense minister's home.

Railways minister Mamata Banerjee had announced that her
Trinamool Congress party would withdraw from Vajpayee's 24-party
coalition, but would reconsider if Fernandes resigned and an
impartial investigation was opened.

The party's defection would not have been enough to bring down
Vajpayee's government as he would only lose nine seats in the
545-member Parliament.

However, increasingly critical newspapers and former government
officials had joined opposition calls for Fernandes' resignation.

Vajpayee needs to hold his National Democratic Alliance together
through May to survive the budget vote in Parliament, which
amounts to a confidence motion.

The president of Vajpayee's Bharatiya Janata Party, Bangaru
Laxman, resigned Tuesday night after Tehelka.com released
videotapes of him accepting $2,175. Laxman said he gave the money
to his party treasurer.

Accepting money to arrange defense contracts carries a sentence
of up to seven years in India.

Since he came to power in March 1998, Vajpayee's government had
not been accused of corruption.


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                     *Michael Spitzer*  <[EMAIL PROTECTED]>
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