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Journalism of Courage
Arrest warrant against Suresh Prabhu: A Kochi magistrate court has issued a non-bailable arrest warrant against union minister Suresh Prabhu for an alleged case of cheating. The court issued the warrants acting on a petition filed by a depositor who has alleged that two cheques issued by the Pune-based Western India Financial Services-of which Prabhu was chairman and managing director some two years ago-had bounced.
Arrest warrant against Russi Mody: The Jamshedpur court of the first-class judicial magistrate has issued an arrest warrant against eminent industrialist Russi Mody. The warrant, posted at his Calcutta address, follows a petition by Tisco officer alleging that Mody, who was at one time the chairman and managing director of Tisco, had beaten him up during an election campaign in the run-up to the last Lok Sabha elections.
MTNL postpones tender-opening: The state-run MTNL has put off the opening of cellular-service tenders by a fortnight to July 15. Chairman and managingdirector S Rajagopalan said on Friday that the step was taken in the wake of requests from several multinational bidders who had sought an extension of deadline citing the onerous preparatory work involved in submitting their bids. MTNL had earlier invited tenders for offering its network equipment as turnkey projects.Vizhag power plan yet to see light: The protracted delay in the issue of counter guarantee to the so-called fast-track Visakhapatnam power project has cost the Hinduja National Power Company, which is promoting the venture, at least $40 million, people familiar with the matter say. Counter guarantee to the project, which has been hanging fire for more than six years now, is expected to come through in the next few days, according to group president GP Hinduja.
IA officers on the warpath: An officers’ association of the state-run Indian Airline has taken umbrage to the centre’s plan to divest stake in the carrier. The association says that the planned move does not augur wellfor the airline, alleging that the implications of divestment will be disastrous. Finance minister Yashwant Sinha had, in his budget, outlined the goverment’s plan to bring down its stake in the carrier to 49 per cent in three years.
Bangladesh devalues currency: Beleaguered Bangladesh said on Friday that it had devalued its taka by 80 paise against the dollar in a bid to give a leg-up to its shrinking exports. The devaluation-the second in this calendar year-failed to enthuse foreign exchange dealers who said that Dhaka ought to have further brought down the value of the taka considering that all other Asian currencies had depreciated much more significantly.
Corporates take to Mibor: Domestic corporates are pricing their debt issues pegged to call money rates what with the Mumbai inter-bank overnight rate emerging as a popular benchmark, dealers say. Corporates, both big and mid-cap, are increasingly pricing their issues linked to the Mibor-the popular acronoym of the benchmark-primarilybecause of the low call rates prevailing in the market for some time now.
Cement output up a tad: Domestic cement production has shown a marginal 5 per cent increase in the first two months of 1998-99, according to an industry body. The Cement Manufacturers’ Association says that while the trend is expected to continue, the second quarter of the year could pose a stiff resistance to the uptrend, owing in the main to seasonal showers.
Move on service tax seen inimical: The centre stands to lose as much as Rs 5,000 crore by way of revenue every year following finance minister Yashwant Sinha’s decision to scrap the service tax levied on transporters. The Indian Foundation of Transport Research and Training says that the abolition of the 5 per cent levy was tantamount to throwing the `baby away with the bath-tub’.
Shoe exports decline: The Council for Leather Exports says that shoe shipments in 1997-98 slipped 17 per cent to nearly Rs 1,000 crore, owing in the main to the continuingrecession in Europe and a strong rupee. The council says that such countries as China, Vietnam, Indonesia and Thailand posed stiff competition on the price front, while Poland, Romania and the Slovak republics were setting up their own production facilities.
Divestment panel to stay: The centre has no plan to disband the Divestment Commission, according to industry minister Sikander Bakht. Instead, it will set up a cell to monitor the implementation of the panel’s suggestions. The government, which has targeted a revenue collection of over Rs 5,000 crore through divestment in 1998-99, is also considering the panel’s demand seeking power to implement its recommendations.
Clinton raps Delhi, Islamabad: United States president Bill Clinton, who is on a visit to China, on Friday hit out at New Delhi and Islamabad for `squandering scant resources on nuclear tests’. He said the two countries held in them the potential to `achieve real fundamental greatness’, but that this would not happen if theyfrittered away precious resources in building nuclear arsenals.
IMF reserves plummet: The International Monetary Fund says that its liquid reserves have shrunk to between $10 billion and $15 billion, and that the meagre kitty will not be enough to meet a new crisis. Managing director Michel Camdessus says that the fund’s bailout of ailing economies may be put to jeopardy should it run out of money further. Analysts say that an empty fund treasure-trove will spell doom for the world economy.
New York threatens sanctions against Swiss banks: The city administration of New York has threatened sanctions against Swiss banks suspected of holding assets of Holocaust victims. Civic authorities say that they will bar short-term investments with Stockholm-headquartered banks and not allow intermediaries from providing letters of credit if Swiss banks do not reach a settlement with claimants by September 1.
