DFID - Chandrababu terms Congress allegations baseless

Chandrababu terms Congress allegations baseless http://www.thehindu.com/2004/03/17/stories/2004031704591400.htm Wednesday, Mar 17, 2004 By Our Special Correspondent HYDERABAD, MARCH 16. The Andhra Pradesh Chief Minister, N. Chandrababu Naidu, has accused Congress leaders of trying to prevent the flow of funds from international agencies, such as the United Kingdom's Department For International Development (DFID), by making baseless allegations of corruption against his Government. He was referring to the findings of a study conducted by the University of Sussex, U.K., for the DFID stating that there were layers of corruption in his Government "breaking many myths created around him." The study report was released at a press conference here on Monday by the Congress Working Committee (CWC) member, Salman Khurshid. Mr. Naidu pointed out that the DFID had released grants totalling nearly Rs.2,500 crores to Andhra Pradesh for poverty alleviation programmes and strengthening the power sector. The latest tranche of about Rs.450 crores was expected very shortly showing that the agency was fully satisfied with the deployment of funds in the State. He said the DFID had written to the State Chief Secretary that the report was not an expression of the agency's views. Mr. Naidu cited a report published in The Hindu on March 11 quoting the British Deputy High Commissioner in Chennai, Stuart Innes, as saying after a visit to Andhra Pradesh that the DFID-funded projects were a big success. Mr. Naidu said the DFID had gone on record that had Andhra Pradesh been a country, it would have been the largest recipient of its aid among all nations. He contrasted this situation with that in West Bengal where, he claimed, the Government was forced to return unspent funds received from international agencies. He alleged that Mr. Khurshid's actions as yet another attempt of the Congress to create problems. Earlier in the day, the Finance Minister, Y. Ramakrishnudu, convened a press conference to allege that Congress leaders were indulging in mudslinging only to gain political mileage before the elections. The Sussex University study titled, "Development risk assessment of Andhra Pradesh," was conducted by James Manor, a Professor in the Institute of Development Studies (IDS), with the aim of giving the DFID a perspective of the state of affairs in Andhra Pradesh for future funding programmes. Mr. Khurshid said the study alleged that for major projects, "a serious bidder for a major contract is often required to pay as much as Rs. 10 million on a Rs. 50 to Rs. 100 million contract just to get a bid on the table" adding, "larger kickbacks are demanded later for the award of the contract." Among other allegations the 51-page report also claims that because of Mr. Naidu's "highly personalized form of dominance, the ownership of reforms is affected making them difficult and impossible."