Keep Us Strong WikiLeaks logo

Currently released so far... 251287 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
AEMR ASEC AMGT AE AS AMED AVIAN AU AF AORC AGENDA AO AR AM APER AFIN ATRN AJ ABUD ARABL AL AG AODE ALOW ADANA AADP AND APECO ACABQ ASEAN AA AFFAIRS AID AGR AY AGS AFSI AGOA AMB ARF ANET ASCH ACOA AFLU AFSN AMEX AFDB ABLD AESC AFGHANISTAN AINF AVIATION ARR ARSO ANDREW ASSEMBLY AIDS APRC ASSK ADCO ASIG AC AZ APEC AFINM ADB AP ACOTA ASEX ACKM ASUP ANTITERRORISM ADPM AINR ARABLEAGUE AGAO AORG AMTC AIN ACCOUNT ASECAFINGMGRIZOREPTU AIDAC AINT ARCH AMGTKSUP ALAMI AMCHAMS ALJAZEERA AVIANFLU AORD AOREC ALIREZA AOMS AMGMT ABDALLAH AORCAE AHMED ACCELERATED AUC ALZUGUREN ANGEL AORL ASECIR AMG AMBASSADOR AEMRASECCASCKFLOMARRPRELPINRAMGTJMXL ADM ASES ABMC AER AMER ASE AMGTHA ARNOLDFREDERICK AOPC ACS AFL AEGR ASED AFPREL AGRI AMCHAM ARNOLD AN ANATO AME APERTH ASECSI AT ACDA ASEDC AIT AMERICA AMLB AMGE ACTION AGMT AFINIZ ASECVE ADRC ABER AGIT APCS AEMED ARABBL ARC ASO AIAG ACEC ASR ASECM ARG AEC ABT ADIP ADCP ANARCHISTS AORCUN AOWC ASJA AALC AX AROC ARM AGENCIES ALBE AK AZE AOPR AREP AMIA ASCE ALANAZI ABDULRAHMEN ABDULHADI AINFCY ARMS ASECEFINKCRMKPAOPTERKHLSAEMRNS AGRICULTURE AFPK AOCR ALEXANDER ATRD ATFN ABLG AORCD AFGHAN ARAS AORCYM AVERY ALVAREZ ACBAQ ALOWAR ANTOINE ABLDG ALAB AMERICAS AFAF ASECAFIN ASEK ASCC AMCT AMGTATK AMT APDC AEMRS ASECE AFSA ATRA ARTICLE ARENA AISG AEMRBC AFR AEIR ASECAF AFARI AMPR ASPA ASOC ANTONIO AORCL ASECARP APRM AUSTRALIAGROUP ASEG AFOR AEAID AMEDI ASECTH ASIC AFDIN AGUIRRE AUNR ASFC AOIC ANTXON ASA ASECCASC ALI AORCEUNPREFPRELSMIGBN ASECKHLS ASSSEMBLY ASECVZ AI ASECPGOV ASIR ASCEC ASAC ARAB AIEA ADMIRAL AUSGR AQ AMTG ARRMZY ANC APR AMAT AIHRC AFU ADEL AECL ACAO AMEMR ADEP AV AW AOR ALL ALOUNI AORCUNGA ALNEA ASC AORCO ARMITAGE AGENGA AGRIC AEM ACOAAMGT AGUILAR AFPHUM AMEDCASCKFLO AFZAL AAA ATPDEA ASECPHUM ASECKFRDCVISKIRFPHUMSMIGEG
ETRD ETTC EU ECON EFIN EAGR EAID ELAB EINV ENIV ENRG EPET EZ ELTN ELECTIONS ECPS ET ER EG EUN EIND ECONOMICS EMIN ECIN EINT EWWT EAIR EN ENGR ES EI ETMIN EL EPA EARG EFIS ECONOMY EC EK ELAM ECONOMIC EAR ESDP ECCP ELN EUM EUMEM ECA EAP ELEC ECOWAS EFTA EXIM ETTD EDRC ECOSOC ECPSN ENVIRONMENT ECO EMAIL ECTRD EREL EDU ENERG ENERGY ENVR ETRAD EAC EXTERNAL EFIC ECIP ERTD EUC ENRGMO EINZ ESTH ECCT EAGER ECPN ELNT ERD EGEN ETRN EIVN ETDR EXEC EIAD EIAR EVN EPRT ETTF ENGY EAIDCIN EXPORT ETRC ESA EIB EAPC EPIT ESOCI ETRB EINDQTRD ENRC EGOV ECLAC EUR ELF ETEL ENRGUA EVIN EARI ESCAP EID ERIN ELAN ENVT EDEV EWWY EXBS ECOM EV ELNTECON ECE ETRDGK EPETEIND ESCI ETRDAORC EAIDETRD ETTR EMS EAGRECONEINVPGOVBN EBRD EUREM ERGR EAGRBN EAUD EFI ETRDEINVECINPGOVCS EPEC ETRO ENRGY EGAR ESSO EGAD ENV ENER EAIDXMXAXBXFFR ELA EET EINVETRD EETC EIDN ERGY ETRDPGOV EING EMINCG EINVECON EURM EEC EICN EINO EPSC ELAP ELABPGOVBN EE ESPS ETRA ECONETRDBESPAR ERICKSON EEOC EVENTS EPIN EB ECUN EPWR ENG EX EH EAIDAR EAIS ELBA EPETUN ETRDEIQ EENV ECPC ETRP ECONENRG EUEAID EWT EEB EAIDNI ESENV EADM ECN ENRGKNNP ETAD ETR ECONETRDEAGRJA ETRG ETER EDUC EITC EBUD EAIF EBEXP EAIDS EITI EGOVSY EFQ ECOQKPKO ETRGY ESF EUE EAIC EPGOV ENFR EAGRE ENRD EINTECPS EAVI ETC ETCC EIAID EAIDAF EAGREAIDPGOVPRELBN EAOD ETRDA EURN EASS EINVA EAIDRW EON ECOR EPREL EGPHUM ELTM ECOS EINN ENNP EUPGOV EAGRTR ECONCS ETIO ETRDGR EAIDB EISNAR EIFN ESPINOSA EAIDASEC ELIN EWTR EMED ETFN ETT EADI EPTER ELDIN EINVEFIN ESS ENRGIZ EQRD ESOC ETRDECD ECINECONCS EAIT ECONEAIR ECONEFIN EUNJ ENRGKNNPMNUCPARMPRELNPTIAEAJMXL ELAD EFIM ETIC EFND EFN ETLN ENGRD EWRG ETA EIN EAIRECONRP EXIMOPIC ERA ENRGJM ECONEGE ENVI ECHEVARRIA EMINETRD EAD ECONIZ EENG ELBR EWWC ELTD EAIDMG ETRK EIPR EISNLN ETEX EPTED EFINECONCS EPCS EAG ETRDKIPR ED EAIO ETRDEC ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID ECONEINVEFINPGOVIZ ERNG EFINU EURFOR EWWI ELTNSNAR ETD EAIRASECCASCID EOXC ESTN EAIDAORC EAGRRP ETRDEMIN ELABPHUMSMIGKCRMBN ETRDEINVTINTCS EGHG EAIDPHUMPRELUG EAGRBTIOBEXPETRDBN EDA EPETPGOV ELAINE EUCOM EMW EFINECONEAIDUNGAGM ELB EINDETRD EMI ETRDECONWTOCS EINR ESTRADA EHUM EFNI ELABV ENR EMN EXO EWWTPRELPGOVMASSMARRBN EATO END EP EINVETC ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID ELTRN EIQ ETTW EAI ENGRG ETRED ENDURING ETTRD EAIDEGZ EOCN EINF EUPREL ENRL ECPO ENLT EEFIN EPPD ECOIN EUEAGR EISL EIDE ENRGSD EINVECONSENVCSJA EAIG ENTG EEPET EUNCH EPECO ETZ EPAT EPTE EAIRGM ETRDPREL EUNGRSISAFPKSYLESO ETTN EINVKSCA ESLCO EBMGT ENRGTRGYETRDBEXPBTIOSZ EFLU ELND EFINOECD EAIDHO EDUARDO ENEG ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EFINTS ECONQH ENRGPREL EUNPHUM EINDIR EPE EMINECINECONSENVTBIONS EFINM ECRM EQ EWWTSP ECONPGOVBN
KFLO KPKO KDEM KFLU KTEX KMDR KPAO KCRM KIDE KN KNNP KG KMCA KZ KJUS KWBG KU KDMR KAWC KCOR KPAL KOMC KTDB KTIA KISL KHIV KHUM KTER KCFE KTFN KS KIRF KTIP KIRC KSCA KICA KIPR KPWR KWMN KE KGIC KGIT KSTC KACT KSEP KFRD KUNR KHLS KCRS KRVC KUWAIT KVPR KSRE KMPI KMRS KNRV KNEI KCIP KSEO KITA KDRG KV KSUM KCUL KPET KBCT KO KSEC KOLY KNAR KGHG KSAF KWNM KNUC KMNP KVIR KPOL KOCI KPIR KLIG KSAC KSTH KNPT KINL KPRP KRIM KICC KIFR KPRV KAWK KFIN KT KVRC KR KHDP KGOV KPOW KTBT KPMI KPOA KRIF KEDEM KFSC KY KGCC KATRINA KWAC KSPR KTBD KBIO KSCI KRCM KNNB KBNC KIMT KCSY KINR KRAD KMFO KCORR KW KDEMSOCI KNEP KFPC KEMPI KBTR KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNPP KTTB KTFIN KBTS KCOM KFTN KMOC KOR KDP KPOP KGHA KSLG KMCR KJUST KUM KMSG KHPD KREC KIPRTRD KPREL KEN KCSA KCRIM KGLB KAKA KWWT KUNP KCRN KISLPINR KLFU KUNC KEDU KCMA KREF KPAS KRKO KNNC KLHS KWAK KOC KAPO KTDD KOGL KLAP KECF KCRCM KNDP KSEAO KCIS KISM KREL KISR KISC KKPO KWCR KPFO KUS KX KWCI KRFD KWPG KTRD KH KLSO KEVIN KEANE KACW KWRF KNAO KETTC KTAO KWIR KVCORR KDEMGT KPLS KICT KWGB KIDS KSCS KIRP KSTCPL KDEN KLAB KFLOA KIND KMIG KPPAO KPRO KLEG KGKG KCUM KTTP KWPA KIIP KPEO KICR KNNA KMGT KCROM KMCC KLPM KNNPGM KSIA KSI KWWW KOMS KESS KMCAJO KWN KTDM KDCM KCM KVPRKHLS KENV KCCP KGCN KCEM KEMR KWMNKDEM KNNPPARM KDRM KWIM KJRE KAID KWMM KPAONZ KUAE KTFR KIF KNAP KPSC KSOCI KCWI KAUST KPIN KCHG KLBO KIRCOEXC KI KIRCHOFF KSTT KNPR KDRL KCFC KLTN KPAOKMDRKE KPALAOIS KESO KKOR KSMT KFTFN KTFM KDEMK KPKP KOCM KNN KISLSCUL KFRDSOCIRO KINT KRG KWMNSMIG KSTCC KPAOY KFOR KWPR KSEPCVIS KGIV KSEI KIL KWMNPHUMPRELKPAOZW KQ KEMS KHSL KTNF KPDD KANSOU KKIV KFCE KTTC KGH KNNNP KK KSCT KWNN KAWX KOMCSG KEIM KTSD KFIU KDTB KFGM KACP KWWMN KWAWC KSPA KGICKS KNUP KNNO KISLAO KTPN KSTS KPRM KPALPREL KPO KTLA KCRP KNMP KAWCK KCERS KDUM KEDM KTIALG KWUN KPTS KPEM KMEPI KAWL KHMN KCRO KCMR KPTD KCROR KMPT KTRF KSKN KMAC KUK KIRL KEM KSOC KBTC KOM KINP KDEMAF KTNBT KISK KRM KWBW KBWG KNNPMNUC KNOP KSUP KCOG KNET KWBC KESP KMRD KEBG KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KPWG KOMCCO KRGY KNNF KPROG KJAN KFRED KPOKO KM KWMNCS KMPF KJWC KJU KSMIG KALR KRAL KDGOV KPA KCRMJA KCRI KAYLA KPGOV KRD KNNPCH KFEM KPRD KFAM KALM KIPRETRDKCRM KMPP KADM KRFR KMWN KWRG KTIAPARM KTIAEUN KRDP KLIP KDDEM KTIAIC KWKN KPAD KDM KRCS KWBGSY KEAI KIVP KPAOPREL KUNH KTSC KIPT KNP KJUSTH KGOR KEPREL KHSA KGHGHIV KNNR KOMH KRCIM KWPB KWIC KINF KPER KILS KA KNRG KCSI KFRP KLFLO KFE KNPPIS KQM KQRDQ KERG KPAOPHUM KSUMPHUM KVBL KARIM KOSOVO KNSD KUIR KWHG KWBGXF KWMNU KPBT KKNP KERF KCRT KVIS KWRC KVIP KTFS KMARR KDGR KPAI KDE KTCRE KMPIO KUNRAORC KHOURY KAWS KPAK KOEM KCGC KID KVRP KCPS KIVR KBDS KWOMN KIIC KTFNJA KARZAI KMVP KHJUS KPKOUNSC KMAR KIBL KUNA KSA KIS KJUSAF KDEV KPMO KHIB KIRD KOUYATE KIPRZ KBEM KPAM KDET KPPD KOSCE KJUSKUNR KICCPUR KRMS KWMNPREL KWMJN KREISLER KWM KDHS KRV KPOV KWMNCI KMPL KFLD KWWN KCVM KIMMITT KCASC KOMO KNATO KDDG KHGH KRF KSCAECON KWMEN KRIC
PREL PINR PGOV PHUM PTER PE PREF PARM PBTS PINS PHSA PK PL PM PNAT PHAS PO PROP PGOVE PA PU POLITICAL PPTER POL PALESTINIAN PHUN PIN PAMQ PPA PSEC POLM PBIO PSOE PDEM PAK PF PKAO PGOVPRELMARRMOPS PMIL PV POLITICS PRELS POLICY PRELHA PIRN PINT PGOG PERSONS PRC PEACE PROCESS PRELPGOV PROV PFOV PKK PRE PT PIRF PSI PRL PRELAF PROG PARMP PERL PUNE PREFA PP PGOB PUM PROTECTION PARTIES PRIL PEL PAGE PS PGO PCUL PLUM PIF PGOVENRGCVISMASSEAIDOPRCEWWTBN PMUC PCOR PAS PB PKO PY PKST PTR PRM POUS PRELIZ PGIC PHUMS PAL PNUC PLO PMOPS PHM PGOVBL PBK PELOSI PTE PGOVAU PNR PINSO PRO PLAB PREM PNIR PSOCI PBS PD PHUML PERURENA PKPA PVOV PMAR PHUMCF PUHM PHUH PRELPGOVETTCIRAE PRT PROPERTY PEPFAR PREI POLUN PAR PINSF PREFL PH PREC PPD PING PQL PINSCE PGV PREO PRELUN POV PGOVPHUM PINRES PRES PGOC PINO POTUS PTERE PRELKPAO PRGOV PETR PGOVEAGRKMCAKNARBN PPKO PARLIAMENT PEPR PMIG PTBS PACE PETER PMDL PVIP PKPO POLMIL PTEL PJUS PHUMNI PRELKPAOIZ PGOVPREL POGV PEREZ POWELL PMASS PDOV PARN PG PPOL PGIV PAIGH PBOV PETROL PGPV PGOVL POSTS PSO PRELEU PRELECON PHUMPINS PGOVKCMABN PQM PRELSP PRGO PATTY PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PGVO PROTESTS PRELPLS PKFK PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PARAGRAPH PRELGOV POG PTRD PTERM PBTSAG PHUMKPAL PRELPK PTERPGOV PAO PRIVATIZATION PSCE PPAO PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PARALYMPIC PRUM PKPRP PETERS PAHO PARMS PGREL PINV POINS PHUMPREL POREL PRELNL PHUMPGOV PGOVQL PLAN PRELL PARP PROVE PSOC PDD PRELNP PRELBR PKMN PGKV PUAS PRELTBIOBA PBTSEWWT PTERIS PGOVU PRELGG PHUMPRELPGOV PFOR PEPGOV PRELUNSC PRAM PICES PTERIZ PREK PRELEAGR PRELEUN PHUME PHU PHUMKCRS PRESL PRTER PGOF PARK PGOVSOCI PTERPREL PGOVEAID PGOVPHUMKPAO PINSKISL PREZ PGOVAF PARMEUN PECON PINL POGOV PGOVLO PIERRE PRELPHUM PGOVPZ PGOVKCRM PBST PKPAO PHUMHUPPS PGOVPOL PASS PPGOV PROGV PAGR PHALANAGE PARTY PRELID PGOVID PHUMR PHSAQ PINRAMGT PSA PRELM PRELMU PIA PINRPE PBTSRU PARMIR PEDRO PNUK PVPR PINOCHET PAARM PRFE PRELEIN PINF PCI PSEPC PGOVSU PRLE PDIP PHEM PRELB PORG PGGOC POLG POPDC PGOVPM PWMN PDRG PHUMK PINB PRELAL PRER PFIN PNRG PRED POLI PHUMBO PHYTRP PROLIFERATION PHARM PUOS PRHUM PUNR PENA PGOVREL PETRAEUS PGOVKDEM PGOVENRG PHUS PRESIDENT PTERKU PRELKSUMXABN PGOVSI PHUMQHA PKISL PIR PGOVZI PHUMIZNL PKNP PRELEVU PMIN PHIM PHUMBA PUBLIC PHAM PRELKPKO PMR PARTM PPREL PN PROL PDA PGOVECON PKBL PKEAID PERM PRELEZ PRELC PER PHJM PGOVPRELPINRBN PRFL PLN PWBG PNG PHUMA PGOR PHUMPTER POLINT PPEF PKPAL PNNL PMARR PAC PTIA PKDEM PAUL PREG PTERR PTERPRELPARMPGOVPBTSETTCEAIRELTNTC PRELJA POLS PI PNS PAREL PENV PTEROREP PGOVM PINER PBGT PHSAUNSC PTERDJ PRELEAID PARMIN PKIR PLEC PCRM PNET PARR PRELETRD PRELBN PINRTH PREJ PEACEKEEPINGFORCES PEMEX PRELZ PFLP PBPTS PTGOV PREVAL PRELSW PAUM PRF PHUMKDEM PATRICK PGOVKMCAPHUMBN PRELA PNUM PGGV PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PBT PIND PTEP PTERKS PGOVJM PGOT PRELMARR PGOVCU PREV PREFF PRWL PET PROB PRELPHUMP PHUMAF PVTS PRELAFDB PSNR PGOVECONPRELBU PGOVZL PREP PHUMPRELBN PHSAPREL PARCA PGREV PGOVDO PGON PCON PODC PRELOV PHSAK PSHA PGOVGM PRELP POSCE PGOVPTER PHUMRU PINRHU PARMR PGOVTI PPEL PMAT PAN PANAM PGOVBO PRELHRC

Browse by classification

Community resources

courage is contagious

Viewing cable 05CHENNAI2075, SEASON OF SCANDALS: PARTIES SQUIRM IN AP AND

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #05CHENNAI2075.
Reference ID Created Released Classification Origin
05CHENNAI2075 2005-08-25 11:22 2011-08-30 01:44 UNCLASSIFIED Consulate Chennai
This record is a partial extract of the original cable. The full text of the original cable is not available.

251122Z Aug 05
UNCLAS SECTION 01 OF 03 CHENNAI 002075 
 
SIPDIS 
 
SENSITIVE BUT UNCLASSIFIED 
 
E.O. 12958: N/A 
TAGS: ETRD PGOV IN
SUBJECT: SEASON OF SCANDALS: PARTIES SQUIRM IN AP AND 
KERALA 
 
 
1. (SBU) SUMMARY: The Volkswagen scandal in Andhra Pradesh 
and Canada's SNC Lavalin scandal in Kerala continue to make 
headlines.  The former involves the questionable transfer 
of government funds to a dubious company that featured the 
VW initials but no further relationship with Volkswagen, in 
an effort to secure Volkswagen FDI for AP.  The latter 
revolves around the Comptroller and Auditor General's 
reported criticism that Canadian company SNC Lavalin 
reneged on its promise to grant $23 million aid to a Kerala 
Cancer hospital in return for a power project secured 
without competitive bidding.  The companies involved have 
reacted very differently to the outbreak of scandals: VW 
quickly took corrective actions, while Lavalin remains 
inexplicably quiet.  END SUMMARY. 
 
----------------------------------- 
WHEN GOVERNMENT FILES MOVED FAST... 
----------------------------------- 
 
2. (U) The Congress government of Andhra Pradesh (GoAP) has 
come under opposition fire for the transfer of $2.7 million 
to a dubious company, Vasishta Wahan, apparently set up by 
the company's India project head, Helmut Schuster and his 
associates.  This transfer of money took place in the 
context of the VW's four-year-long negotiations with GoAP 
to set up a car plant in Vishakapatanam.  Ostensibly as 
equity participation in a joint venture, the GoAP ordered 
the transfer of money from Andhra Pradesh Industrial 
Investment Corporation to Vasishta Wahan's Indian bank 
account in January 2005.  The deal, without even a 
Memorandum of Understanding or formal approval from the 
Volkswagen board, hit the headlines in July following 
exposes in German newspapers.  Shuster soon after lost his 
dual job as Chief of Human Resources at Skoda and VW's 
India project head. 
 
---------------------------------------- 
WE WERE DECEIVED, SAYS AP CHIEF MINISTER 
---------------------------------------- 
 
3. (U) On June 22, when VW headquarters officially informed 
GoAP of the exit of Shuster and VW's India Advisor Ashok 
Jain from the company, GoAP began frantic efforts to 
recover the money and escape embarrassment.  It was too 
late.  The government soon discovered that the money was no 
longer with the bank and VW's official spokesmen denied any 
VW links with Vasishta Wahan.  "It is now clear that 
Schuster deceived my government", Chief Minister Y.S. 
Rajashekhara Reddy told a private TV channel, "I am 
confident that the probes in Germany and by the CBI 
(Central Bureau of Investigation) will confirm this fact." 
 
--------------------------------------- 
RESPONSIVE VW HELPS AP'S DAMAGE CONTROL 
--------------------------------------- 
 
4. (U) VW's quick and effective assistance to GoAP's damage 
control efforts helped.  On July 21, Volkswagen issued a 
public statement that the company will repay the two 
million Euros to AP.  "The company is thus assuming 
responsibility for the damages caused by the suspected 
illegal dealings of the former Head of Human Resources at 
Skoda, Helmut Schuster," the statement said.  The statement 
added that the group will "call to account those 
responsible for the damage  both inside and outside the 
company."  VW sent former German Ambassador to India, Frank 
Elbe, as the company's special envoy.  Elbe met Chief 
Minister Reddy in Hyderabad on August 1, reassuring the 
state of the company's continued interest in Andhra 
Pradesh. 
 
5. (U) Chief Minister Reddy's decision to leave the 
investigation to the federal agency, CBI, and to shift 
Industry Minister Botcha Satyanarayana to another 
department also helped mitigate the damage.  The CBI has 
arrested Ashok Jain and conducted searches at associated 
premises.  Chief Minister Reddy's political colleagues, 
meanwhile, keep harping on the Opposition's attempted deals 
with the VW while they were in power.  Senior Congress 
leader and Municipal Administration Minister Koneru Ranga 
Rao told Post that Telugu Desam Party leader Chandrababu 
Naidu had promised to buy 50 ambulances from Volkswagen at 
five million rupees ($120,000) a piece to secure the $400 
million car project. 
 
----------------------------------------- 
QUESTIONS REMAIN ON THE 'HOAXWAGEN STORY' 
----------------------------------------- 
 
6. (U) All these efforts, however, are unlikely to absolve 
GoAP of what the media calls, the 'Hoaxwagen story' in the 
minds of the public.  It is widely believed that the money 
was probably paid to Vasishta Wahan as "facilitation 
charges", euphemism for bribe, and not as equity 
participation.  Newspapers have also raised allegations on 
the shunted minister Satyanarayana's and his brother 
Muralikrishna's private real estate and other business 
deals in connection with Volkswagen investment.  The 
Frontline magazine of July 30 raised several questions for 
the CBI to answer: "Was the government conned by a glib 
operator? Why did the government release the money to 
Vasishta Wahan and not to Volkswagen, and that too, without 
an MOU?  Could such a payment be made to a company whose 
authorized share capital is just Rupees 100,000 and which 
operates from a one-room office in Delhi?" 
 
--------------------------------------------- ---- 
A CANADIAN DEAL THREATENS KERALA COMMUNIST LEADER 
--------------------------------------------- ---- 
 
7. (SBU) If it is the ruling party that is facing the 
allegations in AP, it is the Opposition Communist Party of 
India Marxist (CPI-M) that is on trial in Kerala.  The 
Party State Secretary Pinarayi Vijayan is caught in the 
middle of a controversy involving a contract awarded to SNC 
Lavalin of Canada in 1996-97, when he was the state Energy 
Minister.  In the context of an ongoing power struggle 
within the CPI(M), Post's journalist contacts believe that 
the allegations might threaten Vijayan's Chief Ministerial 
prospects.  Vijayan is widely considered to be relatively 
more open to FDI and private sector activity than CPI-M 
alternatives. 
 
--------------------------------------------- -- 
BIGGEST SCAM IN KERALA'S HISTORY, SAYS CONGRESS 
--------------------------------------------- -- 
 
8. (SBU) Congress party leaders allege that Vijayan, after 
a 1996 visit to Canada, converted a previous consultancy 
service agreement with SNC Lavalin for the modernization of 
three hydroelectric projects (Pallivasal, Chengulam and 
Panniyar) into a Rupees 3.74 billion fixed price contract 
without global tenders.  Senior Congress leader and 
legislator M.M. Hassan told Post that that Comptroller and 
Auditor General in his draft report has mentioned that the 
entire expenditure in this project was wasteful as it 
failed to enhance production.  According to Hassan, the CAG 
also pointed out that Lavalin had gone back on its promise 
to provide a grant of Rupees 983 million $23 million) for 
Malabar Cancer Center in return for the contract, and gave 
only Rupees 89.8 million ($2.1 million).  Hassan believes 
that SNC Lavalin might have paid all the money, which the 
intermediaries probably siphoned off.  He hinted to Post 
that the money might have gone into the launching of the 
CPI(M)'s private TV channel company, Kairaly.  Hassan 
described the SNC Lavalin deal as the biggest scam in the 
history of the state. 
 
--------------------------------------------- - 
COMMUNIST PARTY INFIGHTING PROVIDES AMMUNITION 
--------------------------------------------- - 
 
9. (SBU) CPI(M) Central Committee Member and prominent 
Kerala leader M.A. Baby (Protect) told Post that his leader 
Vijayan is being pilloried for taking a proactive role in 
solving the energy problems of the state. "All he wanted 
was to go fast in solving serious energy crisis", Baby 
said.  Ranji Kuriakose, a Kerala journalist who regularly 
writes on the scam, explained to Post that the issue has 
grown sensational in the context of the internecine power 
struggle within the CPI(M).  "Vijayan's diehard opponent in 
the party, Achuthanandan, is helping his enemies in 
exposing the deal," says Ranji.  Chief Minister Oommen 
Chandy has ordered a vigilance enquiry into the affair. 
Ranji, however, believes that the vigilance enquiry is not 
proceeding fast, perhaps to shield the ruling Congress 
party's former Energy Minister, Karthikeyan, who also might 
have had a part in the deal. 
 
10. (SBU) Unlike Volkswagen, SNC Lavalin has taken no 
initiative in clearing its name.  Hassan pointed out that 
SNC Lavalin is remaining silent, even as the controversy is 
raging in Kerala.  Ranji has heard rumors that the Canadian 
High Commission has written to the GoK saying that the 
company has paid all it owes, but without going into the 
details of the payment. 
 
--------------------------------------------- --- 
COMMON LACK OF TRANSPARENCY; DIFFERENT REACTIONS 
--------------------------------------------- --- 
 
11. (SBU) COMMENT: Both the VW and SNC Lavalin episodes 
show how a lack of transparency in deals between multi- 
national corporations and state governments can lead to 
serious issues of corruption.  The companies have reacted 
differently.  While VW's proactive steps clearly helped 
salvage its reputation, SNC Lavalin's silence, probably out 
of helplessness, could lead to a total loss of market in 
the region.  In the case of VW, local politicians have 
learned another lesson too: In the eagerness to compete 
with neighboring states in securing FDI, one needs to be 
careful not to go too fast. END COMMENT 
CANDADAI