BJP, Congress in Goa bitter over blame on premier financial institution >From Frederick Noronha
PANJIM, Sept 23: Goa's premier state-run finaicial institution set up to promote industry here has come in the firing line, as BJP chief minister Manohar Parrikar and Congress party leader Luizinho Faleiro traded bitter charges against each other for ruining the institution. Late Monday, the chief minister released a 'white paper' on the EDC Limited (formerly the Economic Development Corporation of Goa, Daman & Diu Limited). Parrikar blamed the one-time chief minister and long-time industries minister Luizinho Faleiro with a "loot and scoot" approach towards this currently financially striken institution. In turn, Luizinho Faleiro angrily called the chief minister a "compulsive, congenital liar" and defended himself of the charges, while claiming that chief minister Parrikar's had himself presided over the ruination of the EDC since late 1999 when BJP-dominated governments took over in Goa. But as the top two politicians traded charges, the overstaffed and riddled with bad-loans institution gives more than a hint of what's going wrong in the industrial front in Goa. In the 1990s, lavish tax-holidays and other incentives brought in a whole lot of industries flocking to Goa. But while the position on paper appeared fine, many, particularly outstation parties, just took subsidies and easy loans and subsequently vanished. Politicians from both sides agree that political corruption and nepotism aggravated the problem, though either side doesn't agree who's to blame. The BJP government says the claims of a "surge in business" from 1995 to 1998 were actually fuelled by a rise in non-performing assets. EDC, set up in 1975, aimed to work as an investment company, provided financial "assistance" to industrial enterprises, to establish companies in the joint sector, and to identify and motivate entrepreneurs. "Whatever problems the EDC is facing today is due to the loans granted during (Congress ex-industries minister) Luizinho Faleiro's period," said chief minister Parrikar. Parrikar accused Luizinho Faleiro, who was CM for a brief stint in the instability-prone 'nineties, of taking questionable decisions in amazing "speed", and attending board meetings of the EDC though he was not a member. 'Corporate loans' -- meant initially as short-term loans at high interest rates for standard accounts -- soon got misused as a 'window dressing' for defaulter's accounts, Parrikar charged. This helped to jack up profits and hide the non-performing assets, he said, accusing Faleiro. Politicians and their kin have flocked to the EDC, regardless of party differences, to make use of their clout and take loans, quite a few of which have since turned bad, or gone in for an also-controversial 'one-time settlement'. "Some of the borrowers of the EDC have just disappeared," said Parrikar. Faleiro in turn alleged that Parrikar had favoured his kin during the 'one-time settlement' of bad debts, and denied any wrongdoing. He went on to read the lists of EDC former directors -- which included prominent captains of Goa's industry -- suggesting later that the chief minister didn't dare to take action against them. "EDC enjoyed full autonomy under the Congress government. It was after 1999 (when BJP-dominated governments took over) that the rot set in," said Faleiro. Approached by the TV cameras for a sound-bite, the chief minister said this was just "looting and scooting by the Congress president" of the state. Asked if he would take action against the "Congress president", the BJP politician, realising this might give a political hue, promised action "against those who looted and scooted, not the Congress president". ENDS ########################################################################## # Send submissions for Goanet to [EMAIL PROTECTED] # # PLEASE remember to stay on-topic (related to Goa), and avoid top-posts # # More details on Goanet at http://joingoanet.shorturl.com/ # # Please keep your discussion/tone polite, to reflect respect to others # ##########################################################################
