The political vice tightened around India's Hindu nationalist-led coalition government with its defence minister resigning yesterday over allegations of corruption in his ministry. "All allegations are false and have harmed national security," Mr George Fernandes said in his resignation announcement on state-owned television.
Mr Fernandes was responding to a documentary which showed bribes being paid to senior politicians, military officers and civil servants by journalists posing as arms dealers. The news portal, www.tehelka.com, had launched the operation to expose corruption in defence procurement. For two days after the expose Mr Fernandes steadfastly refused to resign.
Earlier, Ms Mamta Banerjee pulled her regional Trinamool Congress party out of the 24party coalition and urged the prime minister to hold an inquiry into the scandal. "The prime minister should not spare the guilty and bring the culprits to heel as early as possible", she said.
Mr Fernandes's companion and head of his Samata Party, Ms Jaya Jetley, also resigned over allegations that she accepted Rs 200,000 (£2,941) from the journalists. The film caught senior officials taking bribes to facilitate the acquisition of thermal imaging cameras from "West End", a non-existent company. "The allegations were based on dubious tapes accumulated by dubious characters," Ms Jetley said. "I have not committed any impropriety."
The scandal has already forced the resignation of Mr Bangaru Laxman, head of the Bharatiya Janata Party (BJP), which heads the coalition and the suspension of four officials from the Defence Ministry and army for accepting bribes. Four other senior army officers are under investigation for corruption.
Defence officials said the bribery scandal would adversely affect several major weapons purchases, particularly the deal for 66 Hawk jet trainers for over £1.2 billion, negotiations for which are nearing closure. The navy, also, is on the verge of finalising a deal to purchase the Admiral Gorshkov, a 44,500tonne former Soviet aircraft carrier.
A senior army officer said the government would now put all acquisition plans in "deep freeze" as no one would want to take decisions on purchases, fearful of future repercussions.
The scandal has also dented army morale. Troops serving in Kashmir state criticised their seniors who cleared dubious military equipment for acquisition in exchange for bribes.