In poll season, naming of senior Rajya Sabha member KVP Ramachandra Rao by the Federal Bureau of Investigation (FBI) in the United States in a bribery case, the Congress is facing another huge embarrassment.
Ramachandra Rao, a former adviser of late Chief Minister YS Rajasekhara Reddy has denied the allegations. A US grand jury has named him along with a controversial Ukranian tycoon Dmitry Firtash and four others for alleged conspiracy to pay at least $18.5 million in bribe to the State and Central Government officials to secure a project of mine heavy metals from beach sand in north coastal Andhra districts.
While the episode has given fresh ammunition to the Opposition to target the Congress party’s scam-tainted rule in the State, KVP Ramachandra Rao said in a statement, “I cannot say anything based on newspaper reports. I will be able to say anything only after I receive communication on the charge made against me. I am a loyal Congressman and willing to face any action by the party leadership”.
The charges relate to 2006 agreement between the Andhra Pradesh Mineral Development Corporation and Bothli Trade AG, a subsidiary of Group DF, a Conglomerate owned by Ukranian tycoon Dmytro Firtash.
The agreement was to set up a joint venture for mining of heavy metals including Titanium on the beach of Visakhapatanam and Vizianagaram and produce value added products.
Firtash was among the people who had met then Chief Minister Y S Rajasekhara Reddy to discuss the project.
The controversial deal involve the same names which were also associated with other controversial deals and iron mining scandal of YSR era.
Then Minister for Mining Sabita Indira Reddy and then Managing Director of Department of Mining VD Rajagopal were among those who had visited Russia on the invitation of Firtash company for discussions. Then Minister for Major Industries Botsa Satyanarayana had also visited Russia as part of the delegation.
A memorandum of understanding was signed on April 18, 2006 by Secretary (Industries, Commerce & Mines) on behalf of the state government and P Sunderalingam, a Sri lankan on behalf of Bothili. Subsequently an agreement was signed by Andhra Pradesh Mineral Development Corporation and Bothli on August 24, 2006. Corporation's Chairman and Managing Director Rajagopal had signed it on behalf of the State Government.
Now the FBI has accused KVP Ramachandra Rao, Firtash, Sundara lingam and three others of international racketeering and conspiring to pay bribe to the state and Central Government officials in India to allow the mining of heavy metals including titanium.
According to the sources in the APMDC, officials had written six months back to the then Chief Minister N Kiran Kumar Reddy to scrap the agreement as the foreign company had failed to meet its commitment to start the work on project despite lapse of six years time period. However, with the Government not taking any such action, the agreement was still in place, though neither the Central Government granted the necessary permissions and clearances including environmental clearance for the project not any work had started on the ground.
Grabbing the opportunity to target the Congress party, Telugu Desam Party president N Chandrababu Naidu demanded a high-level probe in the matter.