Arms scandal brings down Indian defense minister

Police fired warning shots on Wednesday to contain protests over the scandal

NEW DELHI, India -- Indian Defence Minister George Fernandes resigned on Thursday, giving in to mounting pressure over an arms bribery scandal.

His departure came after a day of tumult as the scandal enveloped the government of Prime Minister Atal Bihari Vajpayee.

Opposition parties and even members of the ruling coalition had been clamoring for Fernandes to go after the release of a documentary which showed officials apparently taking money from journalists posing as arms dealers.

AUDIO Tarun Tejpal, Tehelka.com: "The only way to expose these guys was the way we took" 433K/40 sec. AIFF or WAV sound Gautam Adhikari, Natl. Endowment for Democracy: "Indian media has been doing a fairly good job" 707K/66 sec. AIFF or WAV sound    VIDEO CNN's Kasra Naji reports on the deepening scandal within the ruling party of India's government Play video (QuickTime, Real or Windows Media) CNN's Tim Lister reports on the bribery scandal that has resulted in the resignation of the head of the ruling BJP party Play video (QuickTime, Real or Windows Media)   ALSO Fernandes led modernised military into 'nuclear club' TIME.com:India's Establishment Dot-Compromised

Railways minister Mamata Banerjee had already withdrawn her Trinamool Congress party from the alliance. It was not enough to bring down the government, Valpayee losing only nine seats in the 545-member Parliament.

But Trinamool's exit did leave Vajpayee vulnerable to the perennial vacillations of the Telugu Desam Party, which supports the government from outside with a deciding 29 lawmakers.

Vajpayee needs to hold together his National Democratic Alliance through May to survive a budget vote in Parliament, which amounts to a confidence motion.

To make matters worse for Vajpayee, another coalition partner with six lawmakers -- the Janata Dal (United) -- joined calls for Fernandes to go.

Fever pitch

As the scandal reached fever pitch Thursday, Banerjee said that the party's withdrawal would be reconsidered if Fernandes resigned and an impartial investigation were opened.

"The prime minister should take action against the guilty. It is a question of national security," she said. "We are taking a stand against corruption."

Although the 17-month-old government appears in no immediate danger, it is the first time since Vajpayee came to power in March 1998 that his government has been accused of corruption.

His allies were using his clean image to fight regional elections against entrenched local politicians.

The move by Fernandes could calm some disaffected coalition members who had been demanding his head.

But the government still has plenty of questions to answer over a secretly filmed documentary by web site Tehelka.com which showed public figures, army officers and bureaucrats apparently accepting money from journalists posing as arms merchants.

In a nationally televised speech, Fernandes denied allegations of wrongdoing, saying his ministry purchased weapons systems based on their worth.

"To uphold the morale of the armed forces and to prevent further damage to our national defence, I have decided to resign from government," he said.

An activist demonstrates against masks of Indian government officials implicated in the scandal

Fernandes conceded there were "black sheep" in the India's defense establishment but said it was unfair to accuse everyone of scandal.

Earlier Thursday, rival lawmakers almost came to blows outside the Indian parliament.

"The government of thieves must quit power!" shouted one group of mostly opposition Congress parliamentarians.

"Congress thuggery must end!" came the reply.

At one stage, security personnel had to form a line between the two groups as they surged towards each other.

A short distance away, hundreds of communist party activists gathered for the latest in a string of demonstrations since the scandal broke on Tuesday.

Loose alliance

In another blow, India's communist and socialist opposition parties came together to form a loose alliance opposing the government.

The documentary made by an Internet news website has already claimed the scalp of the ruling party's president, Bangaru Laxman.

Four Defence Ministry officials implicated in the documentary have been suspended and other senior officers questioned.

The scandal coincides with court hearings into the 15-year-old Bofors arms kickback case, which led to the defeat of then Prime Minister Rajiv Gandhi's Congress government in 1989.

Even as the controversy grows, Tehelka.com says it will release more tapes over the next week, implicating more officials of accepting bribes from the fictitious company set up to sell binoculars.

The Associated Press & Reuters contributed to this report.

Arms scandal envelops Indian government
March 14, 2001
India's BJP chief resigns amid bribery scandal
March 13, 2001

Indian parliament
Tehelka: Indian news

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