CPM squirms over Bengal govt-Radia links

It now transpires that while the CPI(M) has been shouting itself hoarse over the Nira Radia tapes, demanding an investigation into “crony capitalism” and the “politician-bureaucrat-media nexus”, its own government in West Bengal had been dealing with Ms Radia’s public relations and lobbying outfit Vaishnavi Corporate Communi-cations.

Not only has Vaishnavi been representing the West Bengal Industrial Development Corporation and the West Bengal government’s information technology department, PR consultant and corporate lobbyist Nira Radia has also been directly interacting with West Bengal chief minister Buddhadeb Bhattacharjee and state industry minister Nirupam Sen. Her client list also includes Haldia Petrochemicals, in which the state government is a minority partner.
Embarrassed CPI(M) leaders, not surprisingly, are in a state of denial, while one of its junior partners in the West Bengal Left Front, the Revolutionary Socialist Party, is up in arms and demanding that the CPI(M) clarify its nexus with Ms Radia’s company. Incidentally, Lavasa Corporation in Mahara-shtra, which has been issued a showcause notice by the Union environment ministry for alleged violation of environmental laws, is also a client of Ms Radia’s firm.
New Delhi-based CPI(M) central committee member Nilotpal Basu, who earlier said that the “Radia tapes bring out the contours of neo-liberal ‘crony capitalism’ policies”, ran for cover when confronted with the fact that the WBIDC and a department of the Left Front government were Ms Radia’s clients and that her company had regular interactions with the chief minister and industry minister. “Really, I don’t know, I’ll find out,” he told this newspaper. After making vague references to the company’s efforts to “get in touch” with CPI(M) general secretary Prakash Karat, Mr Basu indicated that he would “get back with more details”. He added that the state industry secretary might be able to throw more light on the matter.
A Vaishnavi spokesperson, in response to an emailed query by this newspaper, however flatly denied that the company had any connection with Mr Karat. “Ms Radia did not establish any contact with Mr Karat,” the spokesperson said. But the company refused to give any answer when asked how often had Ms Radia or any company representative met chief minister Buddhadeb Bhattacharjee.
Top Citu and CPI(M) leader M.K. Pandhe, when asked about Ms Radia’s work for the state government, retorted: “I don’t believe this. No way can the state government have anything to do with Radia or her outfit.” When told about Vaishnavi’s dealings with Mr Sen, the Citu leader said: “I don’t believe this. It’s not true.” Vaishnavi, however, confirmed that its “client servicing team, including members of senior management, did interact with Mr Sen and other senior officials of WBIDC as and when required”. Mr Nirupam Sen is WBIDC’s chairman.
Some CPI(M) leaders in West Bengal claimed that Ms Radia had “established contact on a regular basis” with the chief minister during the Singur agitation. But there is no official confirmation of this from the PR firm, which is now being probed by the investigative agencies.
Sources said Ms Radia had established links with the Left Front government after the Tatas moved in to Singur in 2006. A year after, in 2007, her company bagged WBIDC as a client. This account expired only recently this year. By late 2009, it also held the account of Webel, the West Bengal government’s nodal agency for the development of technology, electronics and IT industries in the state. This account too expired only recently. Incidentally, the wife of a New Delhi-based CPI(M) central committee member holds a senior position in Webel.
A statement issued by Ms Radia’s firm reads: “Vaishnavi Corporate Communications (VCCPL) did not represent the West Bengal government, but represented WBIDC as their official communication agency. VCCPL was given the industrial mandate by WBIDC in August 2007 for one year. The contract was renewed for another year in February 2009. VCCPL handled the account for 24 months.” It adds: “VCCPL was appointed by Webel (state govt’s IT department) as their PR agency in November 2009, and the contract expired on July 31 this year.”
At around the time Ms Radia’s company bagged its account, controversies had rocked WBIDC on the Singur episode. A CAG report on the financial year ending March 2007 stated that WBIDC “incurred a loss of `76.11 crore by subsidising the lease of the land” to a corporate group in Singur. What some Left leaders found astonishing was how Ms Radia had bagged the WBIDC account at a time when both WBIDC and Haldia Petrochemicals were locked in a court battle.
While the CPI(M) bosses have gone quiet on the matter, leaders of the RSP and other Left Front partners are angry. Said RSP leader Abani Roy: “This (WBIDC and Webel being Radia’s clients) shows her reach.” He added: “Though we are part of the Left Front, the CPI(M) hardly ever shares anything crucial with us.” He said despite repeated demands, the CPI(M) had refused to show them any of the crucial documents relating to Singur. “Now that such reports are coming out, some CPI(M) leaders should also come out into the open and clarify matters,” Mr Roy said.

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