Indian investigators reopen wheat fraud case

Barbados News.Net
Wednesday 9th July, 2008

India’s Central Bureau of Investigation has reopened a case of alleged irregularities in wheat imports from Australia by the State Trading Corporation.

The CBI alleges the chief managing director and officials of the State Trading Corporation were involved in the award of contracts to the Australian Wheat Board and played a crucial role in the deal.

The CBI had registered the case in September 2001 following the allegation that the decision to import two million tonnes of wheat from AWB was taken, even though the procurement and stock position of wheat was quite comfortable in 1998.

The various other bidders were allegedly rejected on frivolous grounds and the contract was awarded to AWB at exorbitant prices.

A letter has been sent to Australian authorities seeking information on certain vital aspects, such as involvement of middlemen in wheat contracts.

The Australian government has already revealed the AWB had paid commission in the sale of wheat to India in 1998.

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