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Ex-coal ministers asked for money for CMD post: P C Parakh, former coal secretary

15 Apr 2014

Former coal secretary, P.C. Parakh, has alleged ex-ministers Shibu Soren and Dasari Narayan Rao, wanted an acting chairmancum-managing director of Coal India, Shashi Kumar, to cough upRs 50 lakh for his appointment as a regular CMD and Rs 10 lakh as a monthly pay-out. They initiated a probe against him when he refused.
 
Parakh said politicians openly asked for money for appointing CMDs of public sector undertakings and certain members of parliament had become "extortionists and black-mailers."
 
Accusing Soren and Rao of " black-mailing" Kumar, Parakh wrote in his book, Crusader or Conspirator? Coalgate and Other Truths, that the private secretaries of both ministers had met Kumar over dinner "to convince him" to agree to the minister's demands."At the minimum, they suggested that he become a channelising agent for funds to be received from funds to be received from CMDs of Coal IndiaBSE -0.61 % subsidiaries. They told him that all past Coal India CMDs had paid ministers and there was nothing unusual about it. Kumar refused," Parakh wrote.
 
The minister then pushed for an ex-CMD of Coal India, NK Sharma to be given back the post despite him having been earlier removed for irregularities. "I was told that a fat sum was offered to Soren on behalf of Sharma," Parakh wrote in his book.
 
Soren needed a "cooperative" secretary and chief of CIL. "Unfortunately for him, both were unwilling to cooperate," Parakh wrote. He says it was ultimately the Prime Minister who approved the appointment of Kumar as CMD over-ruling the opinion of Soren and Rao after the former resigned to take over as Chief Minister of Jharkhand. "The PM could do so because Soren had resigned. I doubt if this could have been possible if Soren was still the minister."
 
The book adds that there many officers in CILBSE -0.61 % subsidiaries who "were more than willing" to make monetary and other contributions and enjoy "ministerial protection for their misdeeds." There were many PR agencies of industrial houses that are willing to make payments on behalf of incumbent officers, in return for favours to be extracted when theyare appointed.
 
 
Source: ET