Dhamaka Index

2004-02-04T13:18:00.000+05:30

The Arabs From a Japanese Perspective

In an article titled 'How the Arabs Appear to the Japanese,' the head of the Kuwaiti National Council for Culture, Art, and Literature, liberal columnist Muhammad Al-Rumayhi, reviewed the book 'The Arabs: A Japanese Point of View,' by Japanese researcher Nobuaki Notohara. The book, which was recently published in Arabic, included criticism of societal patterns, oppression, and the absence of self-criticism in the Arab world. In his review, Al-Rumayhi presents the book as required reading for anyone interested in reform in the Arab world.

The following are excerpts from Al-Rumayhi's article:

What Enabled the Japanese to Enter the New Cultural Age?
"Whenever some Arabs meet at a scientific convention and Japan is mentioned, the participants compare Japan's revival to the yearned-for Arab revival. They say that Japan succeeded in entering the new age while at the same time preserving its social culture. Apparently, this is the majority opinion among Arab observers. It appears that this is an apologetic view or justification aimed at saying, 'You can enter the age of modernization, globalization, and production without giving up your social heritage, the traditional political pattern, and the behavioral norms that are inappropriate for our time.'

"'And if they are told that the Japanese entered the new age because they changed the political patterns and social behavior to which they were accustomed and because they adopted new ideas, some Arabs respond to this with amazement and denial…'

"Now a Japanese man comes along who expresses, in excellent Arabic, the opposite of what certain Arabs think. This is what Nobuaki Notohara wrote in his book. As soon as I read the book, I thought it [worthy of being] a required book for every Arab statesman who believes that reform is still possible in our Arab region.

"The testimony of Notohara – who dwelled among the Arabs for some 40 years and saw both Bedouin and urban culture, who speaks Arabic like an Arab and who followed Arab literary works and translated them into Japanese – is to the best of my knowledge the first Japanese testimony written about Arabs in their own language…"

'Oppression is the Only Thing That Does Not Need to Be Proven in Arab Countries'

"The author points out the tension clearly apparent in the crowded Arab cities; [he] refers to the tension in the Arab street. He thinks that this tension stems from oppression. 'The people walk through the streets as if they were being followed, faces frozen and silent, and [there are] long queues. A person is harmed by oppression even in a taxi, as the driver chooses his passenger according to where he [i.e. the driver] wishes to go, and refuses to take someone he doesn't like.' The book concludes with a comment that 'the residents of the Arab cities are unhappy and dissatisfied. The people are silent and do not speak, but out of this suffocating silence we hear a cry!'

"Notohara believes that the reason for this atmosphere lies in the absence of social justice, and adds that he has the right to say something to the Arabs after all these years of living among them: 'The absence of justice means the absence of the fundamental basis for human relations. Thus, people in the Arab countries say time and again that [in the Arab world] everything is possible because the laws that exist are not implemented and not honored.'

"The law does not protect the people from oppression because it is violated, and Notohara cites many examples and adds: 'Oppression is the only thing that does not need to be proven in Arab countries.'"

In the Arab World, 'The Ruler Rules For His Entire Life'

"One of the phenomena of oppression that surprise modern Japanese is that 'the ruler rules for his entire life, while the Japanese prime minister's term lasts no more than a few years. In every [Arab] country there is a ban on some newspapers, and authors and publications are subject to censorship.'

"A Japanese individual does not expect to see such phenomena. '… Anyone visiting Japan sees cars with loudspeakers in the streets [verbally] attacking the prime minister and the ruling party without anyone harassing them… But in the Arab countries the regime and the ruler are one. In most Arab countries, the only criteria for respecting a citizen and for the extent of his patriotism is the degree of his loyalty to the ruler. All these are alien to us Japanese of the modern age…'

"The author is aware of the fact that Japan was in the past subject to oppression. But the Japanese freed themselves from it, and it became history. [The author] says: 'I think that oppression is an incurable disease in Arab society, and therefore any author or researcher who speaks of the Arab society without being aware of this simple and obvious fact is not a serious researcher.'

"'As a result of oppression, the people try to be conformist in their opinions, dress, and homes, and under such circumstances the individual's independence disappears. Similarly, the phenomenon of public responsibility is absent. Oppression engenders fear and creates spurious respect [for the government].'"

No Justice - No Public Responsibility

"'Due to the absence of justice, there is no public responsibility. This is why Arab residents destroy parks, streets, public drinking fountains, and public transportation, thinking that they are destroying government property, not their own. Similarly, responsibility for… political prisoners [meaning those fighting for civil and human rights] who sacrificed themselves for society is lacking; society itself has abandoned these courageous people. People in Arab countries see the problems of political prisoners as a private problem of the family of each prisoner.'

"The Japanese individual wonders: 'I can understand that the regimes [fight] prominent individuals, thinkers, authors, politicians, scientists, and artists, but why does the people itself abandon them?'

"According to the author, 'the Arab adopts his ideas from outside, while the Japanese shapes his ideas on concrete events in Japan that he experiences every day. In Japan, new facts are added every day, while the Arab makes do with reconstructing events from the distant past…'"

'People Need Domestic and External Criticism'

"The author compares Japan to the Arabs: 'The Japanese had to deal with the bitter and difficult experience of the Japanese military taking control of the emperor, the government, and the people and leading the country to war… But we recognized our mistake and decided to correct it. We expelled the military and decided to rebuild what was destroyed by the military oppression. We learned that oppression leads to destruction of national resources and the murder of innocents... Self-criticism is a great value in the life of every people, and people need domestic and external criticism.'"

Why Don't the Japanese Hate America (While the Arabs Do)?

"The author says that several times his Arab friends have asked him: 'The U.S. destroyed you by dropping two nuclear bombs on your cities. Why don't you hate America?' He answers: 'We must admit our mistakes. We were imperialist and we conquered peoples and destroyed many lands – China, Korea, and Oceania. We must criticize ourselves and then correct our mistakes. As to feelings, this is a limited personal matter that does not build the future.'

"Notahara insists that awareness of problems is the right approach to correcting them… The Japanese does not expect coming to a bank to withdraw money and having the teller give him less than the amount coming to him, or coming to the museum and having the museum director offer to sell him archeological exhibits…

"In his book, Notohara describes many instances; once he saw a nun in religious garb who paid a bribe. Why? Because in her institution, she could not get any attention without it. The author shows that the Arab value system contains many flaws that do not comply with the progress for which the [Arabs] yearn."

'I Think We All Need to Read This Book With Open Eyes and Hearts'

"I have tried to present in brief this book, which opens the eyes of anyone who wants to see. It presents two matters: Japan freed itself of many of its old values … in order to enter the modern age, [and] the Arab value system requires revision…

"I think that we all need to read this book with open eyes and hearts."

2004-02-04T13:09:00.000+05:30

The Saudi Nightmares about Iraqi Oil

By Nimrod Raphaeli

Saudi Arabia is the largest oil producing country among the members of the Organization of Oil Producing Countries (OPEC) and, as such, it is the dominant force in that organization. Changes in the supply equation that could diminish its role and influence in the international oil market and, more significantly, the future of the oil cartel, concern Saudi Arabia greatly. The possible entry of Iraq, in a considerable way, into the oil market is more than a matter of concern for the Saudis - it may even develop into an economic nightmare.

Iraq has proven reserves of 112 billion barrels which are 11 percent of total proven reserves in the world, and second only to Saudi Arabia's reserves which account for more than 20 percent. There have been no oil explorations in Iraq for more than a decade and the possibility remains of finding even greater reserves when explorations are renewed.

Imports of Arab oil by the United States in 2002 were 975 million barrels, representing 28 percent of total oil imports by the U.S. in that year. The biggest Middle Eastern exporters of oil were Saudi Arabia (585 million barrels) followed by Iraq (285 million barrels) — corresponding to 60 percent and 29.2 percent from Saudi Arabia and Iraq respectively. [1]

Saudi Concerns

Long before the war in Iraq, Saudi columnist Dr. Saleh Al-Namla discussed the "expected challenges" following an American invasion of Iraq — economic, political and cultural challenges. From the economic perspective, the American invasion, says Al-Namla, means "the rebuilding of modern petroleum facilities and enormous exporting power… [suggesting] that America will not only be a mover in the international oil market but a principal player [in it]. This would mean control not only of the quantity and price of oil but the ability to exercise arbitrariness by striking at petroleum [producing] countries and [causing] their bankruptcies." [2]

Writing three months before the start of the war in Iraq under the title "Oil is the First Casualty after the American Invasion of Iraq," a number of Saudi experts speculated about the effects of the war on the oil situation. The article denounced American intentions "for naked interference in the freedom of the oil market and the militarization of this strategic item in order to lower prices by divorcing them from the market's instruments of supply and demand." One interviewee, Dr. Muqbi Al-Thukair, a professor of economics at King Abd Al-Aziz University, warned that American control of the oil wells in Iraq will have a major political effect if OPEC decisions are overlooked. He added: "As it is known, the Western world is trying to destroy OPEC… because they prefer to see oil prices decline but only to a level that would not cause harm to their Western oil companies." [3]

Returning to the subject after the occupation of Iraq, the Saudi daily Okazwarned in an article subtitle that "the exit of Iraq [from OPEC] will cause mortal competition amongst all the producers." Dr. Wadi' Kabli, a professor of international economics at King Abd Al-Aziz University is concerned that if Iraq were to leave OPEC and follow the market mechanism for supply and demand it could cause OPEC to disintegrate and lead to the withdrawal of other countries from the organization, "and this will be the end of OPEC." Another interviewee quoted in the article, Dr. Abd Al-Aziz Daghastani, chief of the economic studies department in Riyadh, suggested that if Iraq would leave OPEC it would bring a new equilibrium between OPEC and non-OPEC oil producing countries. He concluded: "This will weaken OPEC, and we could bid the organization good-bye." Dr. Abd Al-Rahman Al-Sanniy', referred to in the article as an economic writer and analyst, is concerned that the U.S. would exercise its authority over a new Iraqi government to withdraw from OPEC. Such withdrawal would have three negative consequences:

The U.S. will privatize the oil sector for the benefit of the large U.S. oil companies, followed by British and Australian companies.
The Western oil companies will manipulate production to lower prices in the international market.
These companies will begin putting pressure on prices to drive them down to $22-28 per barrel in the immediate term, and further down to $15-18 per barrel in the long-term. This could harass OPEC and bring to its dissolution. [4]
Writing in the London-based Saudi daily Al-Sharq Al-Awsat, Al-Sanniy' considered the American presence in Iraq as being driven entirely by the desire to exercise complete control over its oil. He attributed such a desire to rapidly deteriorating macroeconomic indicators in the U.S. since September 11, 2001, to a level not seen since the Great Depression. He listed the budget deficits, national debt, and a high rate of unemployment as factors that could lead "to the collapse of the economy of the greatest country in the world." [5]

The apocalyptic warnings about the American economy raised by Al-Sanniy' are exceeded only by Abd Al-Wahab Al-Qahtani who wrote an article in Al-Sharq Al-Awsat about "OPEC and the Challenges of Destiny." He expresses concern that "the Zionists are planning to enter the petrochemical industry in Iraq, and even in the Gulf countries, under the cover of globalization and unilateral economic complementarities. We have nothing to offer," he lamented, "but tears and denunciations about our wealth being stolen right under our nose." As evidence of such an eventuality, the author recalled former U.S. ambassador to the U.N. Jeanne Kirkpatrick, "who is known for her support for Israel," calling on Iraq to withdraw from OPEC. [6]

In an unsigned piece in the London-based Saudi daily Al-Hayat, the author sees OPEC shifting from "offense" to "defense" upon the re-entry of Iraqi oil into the market. OPEC countries were able to raise prices while Iraq was under sanctions which restricted its production. "Waves of fear from the future are rolling across OPEC," says the anonymous author, which led Iran to warn against a struggle over shares (under OPEC's quota system) which could deliver a blow to prices. "Price wars are inevitable," said the chairman of the Energy Committee in the Iranian parliament, "if Iraq produced more than the share allocated to it." [7]

Iraq's Present Production Capabilities

Many of these discussions took place long before Iraq exported a single barrel of oil. But they have taken place because of a belief that Iraqi technicians, despite years of poor maintenance because of sanctions, looting, the breakdown of the communications system inside the country, and the interruptions in electric supplies, will be able to invigorate the oil industry faster than was expected. Iraq has announced that it would start exporting oil at the rate of 750,000 barrels per day (b/d) by the second half of June. [8] The American appointed head of the Petroleum Ministry was talking about 1.4 million b/d by the end of June. This may look optimistic but it is certainly achievable by the end of the calendar year. [9] Fadhel Al-Chalabi, director of Global Energy Center in London, who called for the privatization of the oil sector in Iraq, talks about exports of 8 million b/d in 6-8 years and perhaps even 10 million b/d if new discoveries are made. [10]

Conclusion

Saudi Arabia's weight as a Middle Eastern power is measured by its oil reserves and its overwhelming influence in OPEC. If OPEC's role is to diminish as a result of independent Iraqi oil policies, or perhaps even to disintegrate, the consequences for Saudi Arabia's political influence are enormous. Beyond the economics of pricing, oil contributes 85 percent of Saudi government revenues. As an exporter of approximately 7.5 million b/d, a decline of $1 dollar per barrel would translate into a loss of $2.7 billion annually. A decline of $10 per barrel translates into a nightmare for the regime struggling to meet the needs of a rising population and correspondingly rising unemployment. >

2004-02-04T13:04:00.000+05:30

Saudi Delusions

By MEMRI

The following is a collection of writings by Saudi Princess Fahda bint Saud ibn Abd Al-Aziz. According to the Saudi press, the princess is "the daughter of King Saud and the historian of her father's reign."(1)

Princess Fahda often warns about conspiracies by "neo-conservatives" to control the world and by Israel to attack Saudi Arabia. She explains that her father, King Saud, set forth a plan of how the Kingdom of Saudi Arabia and all Muslims today should deal with the "cancerous Zionist threat," and how to fight against U.S. propaganda campaigns. The princess is also reported to be the chairwoman of Saudi charities.(2) The following are excerpts of articles by Princess Fahda:
The Neo-Conservative Conspiracy to Control the World

On November 15, 2003, writing in the Saudi government daily Okaz, Saudi Princess Fahda bint Saud ibn Abd Al-Aziz wrote an article titled "The Bombings: Who is Behind the Scenes? Who is Behind Terrorism?" The following are excerpts from the article:

"It is our turn to think and say that we, in our country, are in dire need of revealing the truth to our peoples and to explain who stands behind the violence in our country and behind the conspiracies that shook its security and took us by surprise like a spark flamed by the wind throughout the country. We need to realize who stands behind those simpletons, who tempted them and supplied them with weapons and money to commit their crimes against their people and their country... We say that Islam disavows them, because what they do is as far as can be from the true Islamic ideology and method.

"Therefore, blaming Islamists [for terrorism] is a policy played by those who want to undermine security in our country. And the Muslims know that the Kingdom [of Saudi Arabia] is the only country in the world that follows Islam and its laws in every sector of life, and although many [Saudi] Islamists are against American policies in the region, they do not rise to hit and kill their brethren...

"So, who stands behind the violence in our country? Let us stop for a while and think in earnest and let us urge our nation to wake up and see the great enemy who is fiddling with our fate, our unity and our resources and is trying to shatter it for whose benefit?

"Wake up, oh Saudis, and look around you... We should comprehend that Islam is the target, and [so is] the undermining of our Islamic values, ideologies, and unity which made us into a safe and cohesive society, and a supreme example in Islam. Furthermore, the goal is to create strife within [our] society and paint a bad image of it and its cohesiveness. That is why we have to think and analyze who is behind these sudden bombings and agitation, and who is directing them from behind the scenes?

"It is not a puzzle ... and it is not a mystery to us ... most of us know the truth and who is behind it. We are now required to go beyond questioning to the phase of acting and contributing [to the effort] to put an end to the conspiracies which were never a trait of our society. All the Saudis, with their varied ideologies: Islamists, intellectuals, thinkers, preachers, academicians, educators, liberals, and the people at large should put an end to the conspiracies by standing together, by being cohesive and by containing these misled youngsters so that they do not participate in implementing conspiracies against the unity and security of their country.

"And let us say together: Wake up Saudis because the conspiracies are surrounding our society and agitating our youth. Let us stand as one and do everything in our power to expose these conspiracies and let us fight our enemy with the weapon that he fears most, our unity, and by organizing an all-inclusive forum, not only for dialogue, but also to reveal the truth to our society and to be able to fight back the great conspiracies and to expose who is planning, financing, and implementing them, and how to get to them, because the country is the victim of this major conspiracy."(3)

A New American-Jewish $95 Million Research Center Established to Attack Saudi Arabia

On December 5, 2003, Princess Fahda wrote an article titled "Extremists in Our Midst Play Into Our Enemy's Hands." The article claimed that Israel has opened a new $95 million research center to attack Arab countries such as Saudi Arabia, and criticized failed Saudi PR efforts to respond:

"In his report from Washington, Ahmad Abd Al-Hadi said a group of writers, intellectuals and former politicians from the American-Jewish community has opened a new research center named Yamit, or Truth, with the aim of attacking certain governments, particularly Saudi Arabia, Egypt, and Jordan. The suggestion to open this center came from two PR companies after they made a $95-million deal with Ariel Sharon to 'explain Israel's policy to U.S. public opinion and clarify the stand of Arab nations that are openly hostile to Israel.'

"But where are the equivalent Saudi plans to explain Saudi policy to U.S. public opinion? We don't know anything about Qorvis Communications, the international public relations company that has been hired by Saudi Arabia at huge expense, except that it has published two reports and received a total of $46 million. We do not know what successes, if any, this company has achieved in terms of explaining our policy to U.S. citizens. All we have are the reactions of a few dedicated individuals whose impressions so far have been negative.

"We should be ready with all financial, human, and intellectual capabilities, and have the courage to choose the right PR companies and experts who are best suited to represent us and explain our policies in the U.S...."(4)

Outside Forces are Trying to Control Saudi Arabia

In an earlier article titled "We Should Be On Guard Against Weak Minds and Treacherous Souls," Fahda discussed U.S. influence in the Middle East: "Today, our country and the Arab nation at large are facing crucial times. Attempts are being made to control and dominate each country in the region by surrounding it with foreign military bases and muzzling the voices of honest people demanding their rights.

"As citizens we should embark on some soul-searching and judicious planning to cope with this foreign military and media onslaught against our most valuable assets: our religion and our country... We should be on guard against weak minds and treacherous souls."(5)

"As My Father King Saud Said, 'The Zionist Threat is Like Cancer '"

In an extensive article titled "King Saud and the Issue of Palestine," Princess Fahda explains, "Just as in earlier times, the Kingdom faces an unjust propaganda and diplomatic offensive by America and Israel." The article states that since its founding, the Saudi Royal Family, led by King Saud, has opposed the existence of Israel.

The following are excerpts from the article which, according to Fahda, contains important lessons for today's Arab world:

"As leader of a country dear to the hearts of all Muslims, King Abd Al-Aziz firmly opposed the Zionist movement and Jewish immigration into Palestine. Enraged by the call at a Zionist conference in America for the creation of a Jewish state, King Abd Al-Aziz threatened to sever relations with both Britain and the United States should they support that call...

"Crown Prince Saud made a touching pledge in a firm sonorous voice: 'By Allah, we will never bid Palestine farewell as long as blood is throbbing in our veins...'

"The Kingdom ... did not cease its efforts. It went much further in supporting Arab issues with the Palestinian issue always on top of the agenda... Several months after Crown Prince Saud's visit to Washington, the United States voted at the United Nations in November 1947 for the partition of Palestine, and the creation of two states: One for the Jews and one for the Palestinians. King Abd Al-Aziz was furious. U.S. Secretary of State Robert Lovett sent through the American Minister Plenipotentiary in Jeddah his government's reply to the points raised by the crown prince during his Washington visit. Lovett claimed that his country's vote was in the interest of peace. He mentioned that the U.S. was instituting an embargo on arms supplies to Palestine and neighboring countries while the security issue was under consideration at the United Nations.

"President Truman's stand in favor of the creation of a Jewish state in Palestine needed no further clarification. He took the stand showing little regard for the pledges made orally and in writing by his predecessor to King Abd Al-Aziz. The king had fought strenuously to prove that Jewish immigration into Palestine was absolutely illegal and he blamed both the international community and the American administration for the usurpation of Arab territory. The accession of Crown Prince Saud to the throne after the death of King Abd Al-Aziz (may his soul rest in peace) coincided with the election of Dwight Eisenhower as president of the United States."

'Arabs will Not Accept an Israeli State Amidst Them'

"As the struggle for the restoration of Palestinian rights intensified, King Saud realized that the unification of Arab ranks was a pressing need. The Israeli threat backed by the West was growing. To face such a threat successfully, a joint endeavor by Arab countries was indispensable in King Saud's opinion. As part of his assessment of the danger, King Saud made the right diagnosis: 'The Zionist threat is like cancer — in dealing with it neither medicine nor surgery will do any good.' This royal statement was meant to emphasize that the Arabs do not, and will not, accept an Israeli state amidst them.

"In 1954, King Saud called for a conference of Muslim countries in order to discuss aid to Arab forces in and around Palestine. The conference, scheduled to be held in Jerusalem, would discuss the Palestinian issue as a whole, work for the unification of Muslims, and explore ways in which financial and military aid could be channeled..."

The Saudi Army was Trained to Repulse Israel

"Because of the tense situation, King Saud agreed with Egypt and Syria to set up a three-pronged collective security pact and a joint military command. The three countries agreed to adopt a unified foreign policy and cooperate closely in all fields. At the same time, Israeli forces launched repeated attacks on Gaza and across the line of armistice. Saudi citizens cabled King Saud their willingness to proceed to the Gaza Strip in order to stand by the Egyptians in repulsing any Israeli attack. The Saudi Army had undergone intensive training and was ready to face all eventualities...

"The Kingdom was in the forefront of countries supporting Egypt in 1956. King Saud announced a general mobilization on Oct. 19, 1956, and cut off oil supplies to Britain and France, the first time such a step was taken by Saudi Arabia. The Saudi Army took up positions in Jordan and offices to receive volunteers were opened throughout the Kingdom. King Saud placed the Ministry of Defense under his immediate control and personally supervised the recruitment of volunteers. In addition, he deposited $10 million in Egyptian banks to increase Egypt's foreign currency assets and he gave instructions that goods purchased from Egypt should be paid for in dollars. The Kingdom broke off diplomatic relations with France and Britain. At the time, Saudi Arabia lost $300 million in oil revenues as a result of the oil embargo and another $50 million due to the closure of the Suez Canal...

"On King Saud's arrival in New York, Mayor Robert Wagner refused to receive him officially. Addressing a fund-raiser for Israel, Wagner said that the Americans were at the end of their tether because of the discriminatory treatment of American Jews to whom both the Saudi Air Force and Aramco were off limits on orders from King Saud. He also stated that he had doubts as to whether King Saud was a real ally of the United States. The next day King Saud made a speech at the United Nations in which he said that power politics had failed and caused much harm to mankind...

"President Eisenhower personally received the king the next day at Washington Airport. Such a gesture was a first in the annals of American protocol. The king stayed in Washington as the president's personal guest. The matter of Palestine topped their agenda and King Saud briefed the president on regional political realities as well as on Arab feelings and rights. Eisenhower summed up his attitude by saying that Israel was there to stay, that America would not stand idly if Israel faced elimination and that the Arabs must understand that..."

Saudi Representative at U.N. Calls for General Assembly to Help Jews Resettle in Europe

"The messages exchanged between King Saud and the American president took two different directions. The Saudi position was stated clearly whereas the American one was an elusive political attempt to make Israel a participant in the discussions. King Saud was determined to defend the rights of his country, even if he had to resort to force.

"On Oct. 2, Al-Shuqairi called on the United Nations to discuss the Middle East question. He presented the General Assembly with a three-point proposal for the settlement of the Palestine issue:

1. The repatriation of one million Palestinian refugees.

2. The branding of Zionism as an unlawful movement.

3. The establishment of a United Nations Agency to help Jews resettle in their former European homes.

"Al-Shuqairi said that thousands of Israelis would like to emigrate from Israel and that a United Nations agency should be set up to facilitate their return to the countries of origin now that both Nazism and Fascism had been eliminated.

"Commenting on Al-Shuqairi's remarks, the Israeli delegate at the United Nations said: 'We have seen a delegate of a member state calling officially and in a dreadful manner for the liquidation of another member state.'

"The next day Eisenhower was highly critical of Al-Shuqairi's speech in which the Saudi had denounced the West's policy in the Middle East. The American president told a press conference that he doubted that Al-Shuqairi's speech reflected King Saud's line of thinking. In reply to this, an official Saudi source at the United Nations announced that the speech was fully in accord with the Kingdom's policy and was endorsed by King Saud."

Saudis Support PLO Charter to Liberate Palestine

"Al-Shuqairi followed up his contacts with another round of similar activities in February 1964. The Arab Radio of Jerusalem broadcast a Palestinian National Charter consisting of 29 articles on which the liberation of Palestine would be based. The idea was to set up what later became known as the Palestine Liberation Organization (PLO). The first Palestinian conference followed soon after; it was convened in Jerusalem on May 28, 1964 and was opened by King Hussein of Jordan.

"We can easily see that the Palestine issue has always been a vitally important topic of discussion between Saudi Arabia and the United States.

"If we look at what is going on today in the Palestinian theater, we can see a striking resemblance. The Kingdom gives full support now to the Arab people of Palestine as it did during King Saud's reign. In those earlier days, the Kingdom faced what it faces today: An unjust propaganda and diplomatic offensive launched by America and Israel. How wise is the saying that history repeats itself: This requires that we read history and examine it and its events in order to understand what happened and prevent its happening again..."(6)

2003-05-14T14:51:00.000+05:30

Cable Boom II: Industry status coming soon

By Nalini Mehra

NEW DELHI: The lowly cable industry might just get the fillip it was looking for. After the corporatisation of the film industry it is time for banks to take a fresh look at the lowly cable industry to give it the status of an industry.

With the soon-to-be baptised conditional access system (CAS) in place on July 14, and with Information and Broadcasting Minister Ravi Shankar Prasad assuring there will no rollback on the date, banks are looking at the potential that cable has to offer.

Executive vice president and director, Hinduja TMT Ltd/IN, Ashok Mansukhani said the ICICI Bank was interested in getting into the media business.

"As first step, they have shown willingness to extend credit to the set-top boxes, that will be made mandatory to receive encrypted channels from July 14," Mansukhani said, adding ICICI see in it an excellent opportunity for retail finance.

With nearly six million cable homes in four metros where CAS is being implemented in the first phase, cable operators estimate at least two million viewers to place their demand for the set-top box.

Banks such as the ICICI will help in the penetration of boxes once it is mandated in the entire country, say cable operators.

In the meantime, multi-system operators (MSOs) called upon the Minister to seek assurances on the CAS system. While it is learnt that the Minister was willing to let the Ministry mediate between the cable operators and the broadcasters to sort out glitches in the implementation of CAS, some MSOs complained bitterly about broadcasters sabotaging the system even before it can take off.

Said Rajiv Vyas of IN cable, "We are willing to implement but we want the broadcasters to come out with the price of their channels. In the absence of the declaration, we do not know how many boxes need to be put in place."

IN cable has been fighting a pitch battle with Star and Sony over declaration of viewership figures, so much so that in some parts of Mumbai, Star and Sony have not made their feed available to IN. Others like Jawahar Goel of Siti cable said, they were ready to implement the boxes once the deadline was implemented.

But operators were confused on the implementation of the system. With the Government indicating its willingness for variable pricing and dual feeds (both free to air and pay) so that viewers do not lose out in the long run, operators are not sure about the availability of channels post the deadline. Some issues remain unresolved.

With CAS being a proprietary technology (the same box cannot be used if the user shifts his house), different boxes will be required for multi-television households.

And with the price of the boxes varying between Rs 3,500 and above, it is anybody's guess whether the boxes will be subsidised.

2003-05-14T14:40:00.000+05:30

Multiplier effects of Indo-Pak talks

By Samina Yasmeen

The recent moves by the prime ministers of India and Pakistan have brought indications of a thaw in terms of relations between the two nations. It is obvious that the two states are gingerly moving toward changing the nature of their interaction.

These moves carry the promise of reviving the links which were considered normal in the pre-December 13 days. That the two sides are willing to do this is a positive sign. But equally promising is the possibility of citizens of the two countries benefitting from the thaw.

The suspension of train and bus services has caused a lot of hardships for those who have relatives across the border. The suspension of air services has also been a great hurdle. The restrictions on access of one to the other?s airspace has resulted in the less fortunate being forced to bear the brunt of the human consequences of Indo-Pakistan tension, since the well-off could always continue visiting each other?s countries via Dubai.

With the emerging thaw, ordinary people would hopefully be able to cross the borders more easily and this, in turn, will directly improve subcontinental atmospherics.

Equally significant are the moves undertaken by the Pakistani government on the jihadi front. The day Pakistan?s prime minister caled his Indian counterpart, its interior minister, Faisal Saleh Hayat, announced that Pakistan would not allow the reincarnation of banned militant groups under new names. Some of these groups were partly a carryover from the jihad in Afghanistan, but others were erroneously created as part of Pakistan?s strategy of bleeding India and gaining some strategic depth.

Having been create by interested parties, these groups have acquired the status of autonomous units ? even their creators often cannot control them.

Pakistan?s participation in the ?War on Terrorism? in the wake of 9/11 had caused Islamabad to revive its interest in reining in the militant groups but the attack on the Indian Parliament on December 13 indicated the limits of its ability to do so.

The subsequent Indian refusal to negotiate with Pakistan and the mobilisation of troops along the international border, paradoxically, further strengthened these groups. Often using the Indian intransigence as proof of Delhi?s aggressive ambitions, they justified continuing their activities.

Since the US attacks on Iraq, these groups may have acquired added appeal among those who are cynical about American intentions in South Asia and the Middle East. One could easily find old militant groups raising funds under new names in some of the most fashionable areas of Pakistan?s major cities. That these groups could continue their activities across the border in the name of jihad has been a known fact. Their presence and continued operations has naturally caused concern in New Delhi.

By taking a tough stand now, the Pakistan government is indicating its interest in addressing New Delhi?s concerns. One could argue that these steps are in response to recent observations by senior US officials on Pakistan?s track record in reining in these militant groups. As reflections of Washington?s perception, these statements carry the risk of affecting Pakistan?s access to American assistance. They can also impact upon Pakistan?s ability to participate in the reconstruction of Iraq. So Pakistan is merely trying to please Washington.

However, one cannot ignore the fact the Islamabad has chosen to do so soon after the Indian prime minister extended an olive branch to Pakistan. The message is simply that Pakistan is serious about improving relations with India. Acknowledging the significance of these moves is not to detract from the possibility of some event undermining the current mood. For instance, a terrorist attack on a significant Indian site could easily lead to Indian allegations of Pakistan?s complicity. But, as the two sides show signs of some maturity (even if under the US implied pressure), it becomes important for the Indian government to welcome the positives and understand the causes of the negatives.

A display of maturity on part of the Indian government would not go unnoticed among those Pakistanis interested in changing the dynamics of Indo-Pakistan ties. It is time to look at the half-full glass. Even if the water is a bit muddy.

2003-05-14T14:38:00.000+05:30

Andhra Pradesh wants Centre to strengthen State police

By Kajol Singh

NEW DELHI: The Andhra Pradesh government reiterated its stand that the Centre should invariably consult the concerned State government before deploying armed and other forces in a state, in aid of the civil power.

Andhra Pradesh Finance Minister Yanamala Ramakrisnudu represented Chief Minister Chandrababu Naidu in the meeting of the standing committee of the Inter State Council here on Tuesday. Ramakrushnudu said that even for declaring an area within a state as a disturbed area, there should be consultation with the State government concerned.

Ramakrishnudu opined that the Centre should not deploy the armed forces unilaterally, it should also meet the expenditure relating to Central armed forces deployed in a state for public order duties, he added. He stated that the Centre should assist the State government in strengthening the State police.

Andhra Pradesh Finance Minister suggested that the Centre should discuss the issue in the Inter State Council before taking any disciplinary action even such as imposing penalty on any State government. He requested the Centre to permit the State governments to make State amendments to the labour laws as per its requirements from time to time.

He also wanted the Centre to permit the State government to appoint employees on contract basis in various crucial sectors.

2003-05-14T14:34:00.000+05:30

Does Defeat Always Have to be so Humiliating?

BY RAMZY BAROUD

What?s worse than a defeat is a humiliating defeat. Worse than both, a defeat
that?s brushed off, as if it never happened.

There are basic facts that some acknowledge and some wish to discount. The war
on Iraq was fought for world hegemony, Israel, natural resources and a misguided
president who genuinely believes that he was ordained by God to save the world.

But why do we always stop there? It?s also a fact that Iraq was defeated, and in
a very humiliating fashion. You?d think that both concepts refer to the same
value: defeat is defeat. I beg to differ. What makes Iraq?s defeat a humiliating
one, is not only the way the US chose to fight this dirty war, collect the
spoils or reveal its ?wanted list? of Iraq?s top alleged war criminals on decks
of playing cards. The defeat was especially difficult because it exposed our
incompetence.

On one hand, the Arab world repeated the same old broken record, angry masses
that are quickly dispersed by anti-riot police, and two-faced leaderships:
against the war in fiery speeches while doing their best to provide the needed
logistical help to aid the invaders.

And, since the war is over, the only country that publicly hailed the war on
Iraq, amongst the Arabs, Kuwait, has emerged on top, as poor Arab nations are
now seeking forgiveness from the tiny Sheikdom, for opposing the war.

On an Arab satellite television show today, a group of Egyptian psychiatrists
and intellectuals met to discuss the ?mass depression? suffered by Arab people
as a result of the war on Iraq, on Palestine, poverty and every other stressful
factor. One advised the audience to ?avoid depressed people and only seek the
company of happy ones?. That was his solution to the endemic problem. A
religious cleric decided that the solution was to ?keep on praying?, while a
third disgruntled for a whole hour to prove that it?s scientifically wrong to
call the feeling suffered by almost entire populations, ?depression?. Did anyone
think that a mass depression might require a mass movement for change, rather
than seeking the company of happy people?

Meanwhile, Arab regimes are scrambling to prevent a war on Syria, again, without
any indications that their approach to the new challenge was much different than
past ones. I doubt that a serious official stance shall be taken even if US
soldiers, a few months or years from now, began handing out decks of play cards
with pictures of ?wanted? Syrian officials.

Another incompetence, which we hardly address, is the failure of anti-war
movements to stop the war on Iraq, or to at least slow down its momentum. Sure,
no one expected our signs to change the world, but no one protests for the sake
of protesting only.

The anti-war movements worldwide were indeed spirited and uplifting, but they
only resolved half of an equation. The missing half was using their numbers to
stop a war, translating the power of the masses into a real tool for tangible
change.

Western ?democracies?, most notability in the US and the UK are clearly
oblivious to the anti-war efforts, no matter how massive. Public opinion can
always be fabricated to serve the political interests of the ones in control,
and can always be dismissed if it fails to serve the interest of the
governments. Here comes the missing link: so what do we do now? Anti war
activists, intellectuals and educators must seriously move one step forward, to
escape preaching and problem-digenesis, into offering solutions, mechanisms,
guidelines, and to-do lists, so that the passionate millions know what to do
with their passion, to effect change and to foster a more promising vision for
the future.

Meanwhile, in the Arab world, facing the problem is the best way to move out of
the decades of defeatism and exploitation, by their own rulers first, and
foreign exploiters second. American civil rights activist Malcolm X used to say,
?you better stop singing and start swinging.? Many in the Arab media, especially
in the Media are failing to realize that, wasting airtime for singing and
dancing all day. What?s there to celebrate? Is this the human version of an
ostrich hiding its head in the sand? True, tearing our cloths and weeping at the
ruins are not the solutions either. Arabs must prevail over their differences,
realize the magnitude of the challenges facing them, and move forward toward the
problem, rather than away from it.

A precious little Iraqi girl was rushed to the Mansour hospital in Baghdad on a
stretcher during the first a few days of the war. She was rushed to the
emergency room, covered with blood, as her entire family was trapped under the
rubble of their bombed house. The little girl was more overwhelmed by the
cameras that greeted her at the hospital?s entrance, than by here own wounds.
She reacted with her natural instincts, but while neither calling for ?mommy? or
?daddy?. The little girl raised her hand with untold pride and flashed the
victory sign. The other arm seemed missing.

Defeat doesn?t always have to be humiliating. Defeat can be a stage where we
gather our strength and fight back, for our world, shattered by cluster bombs,
for our fellow men and women, brutalized by exploiters who wear the guise of
liberators, and for the sake of that Iraqi girl, who tried to tell us not to be
weakened, because she was still standing.

2003-05-14T14:32:00.000+05:30

Indians in US prosper despite IT bust

By Alex Thompson

NEW YORK: Despite the volatile markets and the collapse of the technology bubble, the South Asian community in the United States continues to grow and build wealth, a leading financial services company has said.

In a report released, Merrill Lynch praised India's expertise in the information technology and software industries, saying it helped increase the wealth of many non-resident Indians in the US even though it also reduced their net worth as the Internet bubble burst.

The Indian community in the US was probably affected by these events more than any other expatriate community in the world, note some studies.

However, this is a "cohesive and resilient" community and many people have renewed vigour in their business operations and investments," first vice president and head of Merrill Lynch's multicultural and diversified business development group Subha Barry told reporters while releasing the report.

"This is one reason why Merrill Lynch is currently expanding its South Asian wealth management focus, which has grown strongly in the US over the past few years, around the globe," she said.

Merrill Lynch's multicultural and diversified business development group aims at making Merrill Lynch the pre-eminent wealth management firm among the diverse South Asian market.

There are an estimated 20 million people of Indian origin currently residing outside India, with the largest population in Myanmar, the US, Malaysia, Saudi Arabia and the United Kingdom, according to a study by the London-based think-tank, the Scorpio Partnership.

"In the US, South Asians are the sixth largest foreign population, with more than 1.8 million people of Indian origin," Jyoti Chopra, director of South Asian business of the group 'Jyoti Chopra' said.

"This is the fastest growing foreign population in the country, with the number of people of Indian origin surging 105.9 per cent between 1990 and 2000," Chopra said quoting latest census figures.

"Non-resident Indians continue to contribute strongly to the national economy, and are estimated to include 200,000 millionaires." The median income is over $60,000 compared to the national average of 38,885, she added.

She noted South Asians continue to find success in the US in several fields including as technology entrepreneurs, physicians and health care providers, small business owners, and corporate executives.

"In late 2001 after the technology bubble, Merrill Lynch estimated the size of the Indian entrepreneur market in Silicon Valley alone to comprise 200,000 people, with wealth worth $60 billion."

Studies by Merrill Lynch show that the non-resident Indian community is highly conservative when it comes to business and finance, with a strong propensity towards saving.

"Education and saving for future education needs, for the next generation, continues to be a high priority," said Chopra.

2003-05-13T16:42:00.000+05:30

Let?s not be dopes about drug use

by Manish Kumar

Let's get one thing clear straight up. Doping is a universal phenomenon; it exists in all countries, among all kinds of athletes, from no-hopers to potential champions. Where it varies ? and this difference is crucial ?is not so much in degree of use as in degree of acceptance. Some countries ? the US, Germany ? accept that it exists and work at stamping it out; others don?t and try and sweep it under the carpet.

The problem with doping in India is, again, not that it exists but that it is seen, officially, not to exist. India?s top sporting officials, including the sports minister, have been at pains to state that India has a good track record on doping and everything?s okay. In fact, everything is far from okay and if things don?t change the fallout for Indian sport could be crippling.

The first major case of doping involving an Indian sportsperson took place at the 1986 Asian Games. Since then, right up to the last major international event?last year?s Asiad?India?s performance abroad has been increasingly blighted by one athlete or other testing positive. Last year was an embarrassment; two weightlifters were caught at the Commonwealth Games, before the Sunita Rani fiasco at the Asiad. She was reinstated but, it must be noted, only on technicalities. The news this year has hardly been any better; first the revelation that 16 medal-winners at last year?s Hyderabad National Games had tested positive, then the shock of 23 participants at the national junior weightlifting champ- ionships being caught.

If there?s anything more shocking than all this, it?s possibly the attitude adopted by the authorities?the government, which controls the Sports Authority of India, and the Indian Olympic Association. The semi-official line on these revelations is that it?s the result of greater vigilance, which itself flows from an increased will to fight doping. Rubbish. The reason why Indian sporting officials have opened up as much as they have is because of pressure from the powerful World Anti-Doping Agency and the prospect of sanctions. Any bid for an international event will fail if the world federations or the IOC are not convinced about a commitment to fight drugs.

Sports Minister Vikram Verma?s comment on the Hyderabad case is equally off the mark, though it is more illustrative of the mindset: ??I would say that 16 medal winners testing positive is not a very big number if we look at the 8,000 sportspersons who participated at the Hyderabad Games.?? Forget the error of omission ? only 465 athletes were tested out of 6,500 participants, raising the percentage significantly. It?s the metaphorical shrug of the shoulders that tells the whole story.

However, such cynicism is self-defeating so it will be more instructive to give Verma and his sidekicks the benefit of the doubt and some suggestions to go with it. The government, he says, is serious about doping and about making India dope-free by 2005. Great if it happens, but he?ll have to put his money where his mouth is. Experts agree that while doping cannot be wiped out completely it can be checked with a strong mechanism. If Verma visits his ministry?s dope testing laboratory in New Delhi?started in 1990 but yet to receive IOC accreditation?he will find only two ?scientists? there. The lab, consequently, can test a maximum of 10 samples a day. Imagine the pressure on this lab?and short-cuts that will appear tempting?when the 250-strong contingent is being tested ahead of the Olympics.

The good news on this front is that Verma?s ministry is considering an offer from a top pharma company to provide its expertise in sample testing. The company?s hi-tech lab in Mumbai has the necessary ISO certification and its 200 scientits can test 3,000 samples daily. Verma?s tougher battle is bringing in some accountability. Not a single official?coach, doctor, manager ? has been punished for any doping-related offence since 1986. Not even in the IOA?s latest rash of outings. The plea is that no athlete has complained against his coach; ridiculous because, in a system completely dependent on patronage, this would be an act akin to suicide.

So is there a way out? India would do well to look at what China, another country with a dope-tainted past, has done to clean up its act. Following a spate of swimmers testing positive, it came down heavily on top coaches and officials who were supporting state-sponsored doping programmes.

As a result, Chinese swimmers enjoyed a clean year in 2002, with no positive result from 745 tests conducted on them by both the Chinese and the world swimming body FINA. This was not just a one-off test but an intensive course spread over the year: 23 star swimmers each had more than seven tests.

And as you try and compare the situations, the cynicism resurfaces.

2003-05-13T16:41:00.000+05:30

Three cannot tango

by Mani Shankar Aiyar

The French call it a menage a trois, a household of three, which is what India, Pakistan and the United States are slipping into. Even as he protests that he is not here to interfere in India-Pakistan relations, that is all Richard Armitage is doing. And even as he protests that he is doing nothing under outside pressure, the fact is external developments are pushing Vajpayee and his government into wriggling out of the bind into which they quite unnecessarily pushed India-Pakistan relations after the fiasco of the Lahore bus ride. Vajpayee admitted as much when he told the Lok Sabha that although Iraq had nothing to do with Kashmir, it was the American invasion of Iraq which made him see the need for movement on Kashmir.

Those in government are being compelled to unravel their weaved-up follies about the Musharraf regime. They said they would not talk to Musharraf because he was the cause of Kargil. Of course, he was. Of course, he still is. Then why the climbdown? Government spokesmen and their media propagandists have insisted that the ?military mindset? would not allow Pakistan to make peace with India. If so, has the Pakistani military mindset undergone a lobotomy? Or is it that the Armitages of this world are twisting the BJP-NDA mindset into greater sense and sensibility? The Vajpayee government has portrayed every terrorist outrage in India, from Jammu and Kashmir to Akshardam, indeed even Godhra, as the handiwork of the ISI. On what basis then do Vajpayee and Advani now believe that the conditions they have repeated ad nauseam have been or will be fulfilled?

As brought to the attention of the Lok Sabha by Rashid Alavi of the BSP, the annual report of the Ministry of External Affairs claims that 13/12 brought us on par with 9/11 in the global war on terrorism! Armies of parliamentarians, including myself, were despatched around the world to tell all and sundry that Pakistan was behind the storming of the citadel of the world?s greatest democracy. Neither the US Congress nor the European Parliament have been impressed with the argument. They have condemned the attack, certainly, but not pointed a finger at Pakistan. Indeed, in a recent testimony before the US Senate Intelligence Committee, CIA Director George Tenet has categorically put the blame for 13/12 on ?Kashmiri militants?, not Pakistan. In the debate on Pakistan, I brought this evidence from the CIA website to the attention of the prime minister. Neither he nor the US authorities (nor the ever-ardent Indian Express) have refuted it.

As for the European Parliament, I was a member of the delegation sent there. When we asked why they, who were so concerned over 9/11, had not said a word about 13/12, the lame excuse trotted out was that they were preoccupied with parliamentary group elections. When we asked, well more than a month has passed, what do you propose to do about it, they said they were drafting a resolution urging India and Pakistan to settle Kashmir. It was only our insistence that any linking of the J&K issue with condemnation of the attack on Parliament would sabotage Indo-European parliamentary relations that eventually led to their condemning the attack without bringing in Kashmir ? but at no time have the Europeans endorsed our repeated claim that Pakistan masterminded and engineered that outrage.

When the Vajpayee lot found that their bluster was not impressing anyone, they mobilised the bulk of our armed forces, at enormous cost to the nation and enormous damage to morale, to go man the outer perimeter of our borders on full alert for ten long months in a meaningless eyeball-to-eyeball confrontation, which quite failed to cow down the Pakistanis but thoroughly alarmed the world at this display of brinkmanship by two neo-nuclear powers.

That is when the Sword of Damocles hanging over our heads since 6 June 1998 was unsheathed: UN Security Council resolution 1172, which revived for the first time since the 1965 war the dreaded K-word, Kashmir. As punishment for Pokhran II, the axis of evil ? the five permanent members of the Security Council, all of whom are nuclear weapon powers ? threatened India and Pakistan, settle Kashmir or our wrath will descend on you. That is how Vajpayee at Srinagar made the connection between Iraq and Kashmir. The Iraq resolutions were twice as old as resolution 1172 ? but kept in storage till Bush decided he needed another war on yet another defenceless enemy to win his 2004 elections. Sorting out India and Pakistan would go down extraordinarily well with the American voter.

Vajpayee has made the connection only now. Jaswant Singh made it much earlier. Hence his chasing Strobe Talbott the world over, ten times round, begging redemption for Pokhran II by abject surrender to the United States. The US, of course, won the day. The Vajpayee government first credited the US president, not the Indian armed forces, with ending the Pakistani incursion in Kargil; then they let Bill Clinton get away with describing Kashmir as a ?dispute? in the sacred precincts of Central Hall; then rushed in after 9/11 with an offer of territory which the Americans feared to tread; then bit their tongue as neither America nor the world bought our story about 13/12; and have now abjectly dismantled the entire response to 13/12. It is a grovelling confession of wasted years.

It has taken not good sense of their own but third party intervention to force this retreat on the BJP-NDA. Jawaharlal Nehru wrote to John F. Kennedy on 24 April 1963 that in Indo-Pak matters, third persons could be ?helpful? if they were ?quiet, unobstrusive and objective?. The US is none of these. Powell on March 31, the Tenet testimony, Jay Garner?s deadline of December 2004 (denied for the record but of a piece with US neocon thinking); Armitage?s speech at the National Defence University; counter-terrorism chief, Ambassador Black?s testimony cited by me in Parliament; and Brajesh Mishra?s shameful advocacy of a joint US-Israel-India operation on the Arab nation in the name of fighting global terrorism ? all these show that in our menage a trois, India is the sauten.

2003-05-13T16:40:00.000+05:30

CEO in jail, but what hope for his investors?

by mujahed azam

MUMBAI: For retired railway employee R R Malhotra (65), Roofit Industries was as good a bet as Reliance Industries. At least that's what a friend told him in 1999 about the company while introducing him to the promoters.

So impressed was Malhotra by the Motwanis, he poured his entire post-retirement savings into Roofit, and even sold off his flat in Mulund.

His investment: a whopping Rs 30 lakh. Today, the glory days of the stock market and Roofit are done. In his rented one-bedroom flat in Ambernath, on the edge of the city that once dazzled him, Malhotra rues the death of his dreams.

Monthly bills are paid from the Rs 7,000 he gets from the Railways as pension. Instead of a quiet, retired life with the promised 24 per cent return on his investment, he spends his days trying to get his life savings back.

"I've tried everything," sighs a tired Malhotra. "The police, the SEBI, the Department of Company Affairs, but no one cares for small investors. I don't know where else to go, which door to knock.

There are hundreds like Malhotra across this city, investors in a corporate disaster called Roofit Industries who are collectively owed Rs 100 crore for their fixed deposits. Their stories aren't news in a city that's used to defaults and scams. But on Saturday and Sunday they shrugged off their exhaustion and emerged from their gloom.

What they read in this website's newspaper on Saturday morning was the first ray of hope: that the man who took their money, Chairman of Roofit Industries Suresh Motwani, had been arrested. The arrest was forced by the sessions court, which demanded to know what action the police had taken to recover investor funds.

"I moved the sessions court so that the Economic Offences Wing (EOW) at least registered an FIR against the company," says Rakesh Agarwal, the first complainant in the case.

Motwani, said Deputy Commissioner of Police (EOW) Sanjay Barve, was produced along with Director Madan Relvani before court on Friday and will be in police custody for 14 days. But that doesn't particularly enthuse investors.

Even after filing a complaint against the Motwanis in July 2002, under the Maharashtra Protection of Investors and Depositors Act, the FIR was registered only six months later, in January 2003.

The arrest of Motwani and Relvani came only on May 9; brother Kishore Motwani and father Gurbux Motwani are still at large.

From glam to gloom

"What's there to smile about in a recession?" asks the front page of Roofit's 2001 balance-sheet.

"A lot...Roofit's 1996-97 turnover was a mere Rs 66 crore. Within just four years, turnover has grown to Rs 456.28 crore. That's a compounded annual growth rate of an amazing 62 per cent!"

Audited by chartered accountants Nitish Nigam and Co, the Roofit balance sheet was swallowed hook, line and sinker by the business press, which hailed Roofit as one of corporate India's biggest success stories. When the collapse came, the Motwanis claimed a combined turnover of Rs 1,000 crore.

It isn't unusual for a business to fail, but what got the investors' goat was the Motwanis' caviar lifestyle.

"Within three months of default, the Motwanis spent Rs 15 lakh to become members of Otters Club, Bandra. Their children are now studying in Switzerland. Other family members have set up offices and bought houses in Dubai and London," alleges Shyam Ahuja, President of the Mumbai Depositors and Finance Brokers' Welfare Association.

Energised investors are not satisfied with Motwani's arrest and say they want their money back. Their faith in the police, however, is limited. Indeed, getting their money back presently seems a dim prospect. The wheels of justice will move slowly.

"There is a possibility that they could be let off on bail," admits Barve. "The investigating officer is expected to file a charge-sheet in the next 90 days. It is up to the court to decide on the punishment." The investigation team, meanwhile, is expected to ferret out details of the case.

"Recovery of property is part of the exercise to strengthen the case," an official says.

Meanwhile, Inderjit Bhattacharya _ who deposited Rs 1.10 lakh in Roofit and an another Rs 90,000 in group company Sun Earth Ceramics _ has only one question.

"Can you please find out," he asks, "whether I will get my money back?"

On the Roofit Trail

Where is the company that has left so many investors in penury?

When this website's newspaper> visited Roofit Industries' registered office at Sangli Building on Perin Nairman Sreet, Fort, we were told the company has moved to Byculla.

"This was only a rented office," says the caretaker.

At the two-storey New Bharat Building in Ghorupdeo Cross Lane 1, Byculla _ with dilapidated chairs and tables _ no information was available either about the promoters or about the fate of the fixed deposit holders.

The Motwani residence at Pali Hill, Bandra, has been sold off. The company's factory at Ratnagiri stopped producing asbestos sheets when it ran out of money.

"It is," says investor Jeetraj K Shah, "as if the entire top management of the company has vanished from the earth."

Luring investors with fake data

(For 1998-99, 1999-00, 2000-01. All figures in Rs, crores)

Sales: 182.96, 320.68, 455.73 Net Profit: 19.84, 37.03, 41.64 Total loans: 185.79, 301.37, 469.41

2003-04-26T14:19:00.000+05:30

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