Acute angle

The recent campaign against the government’s attempt to amend the Right to Information (RTI) Act and remove ‘some’ file notings from the purview of public information has an interesting sidelight. The most aggressive protesters were leading NGOs, but this time some of the RTI spotlight has turned on them too. Activist Veeresh Malik says that the RTI Act is very clear that information seekers must adhere to its provisions themselves. So far, most NGOs would not meet the disclosure standards that they demand from government, nor would many of their financiers and backers. Specifically, Malik charges a few aggressive NGOs, substantially funded by foreign donor foundations, multi-lateral agencies and even foreign governments seeking defence-related information, when in fact the RTI statute applies only to Indian citizens? So far, only one organisation has responded to this demand, that too only with an assurance about adherence.

Genuine claims?

Last week a newspaper reported that ICICI Bank, lender to the always controversial Pramod-Vinod half of the Mittal steel empire, was trying to force a merger between the group and Jindal Steel. Within hours, senior Mittal group officials were on TV denying the move and alleging ulterior motives. More importantly, they said that the company will return to the black in six months. Sources say the facts are exactly the opposite. The Mittals are the only steel major that squandered an opportunity to ride the commodity boom and turn profitable. Secondly, they are facing a serious investigation under the Foreign Exchange Management Act for transfer of funds abroad and are grappling with excise inquiries. A couple of years ago, an investigation by the Serious Frauds Office was stayed by the courts. All told, the company is hardly on the recovery path as claimed by management. Interestingly, Sebi officials have already swung into the act of verifying Ispat’s claims and the implications of their statements under Clause 49 of the listing agreement.

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