Indian companies which engaged in oil-for-food transactions with the Saddam Hussein regime paid bribes to the former Iraqi ruler to get oil contracts. A probe conducted into their dealings with the Saddam regime by Enforcement Directorate (ED) shows that many Indian companies, including some big names belonging to both public and private sectors, paid bribes to the Saddam regime through a Baghdad-based transportation agents company owned by the ruling family. ED, however, has found the Indian companies prma facie ‘not guilty’ of wrongdoing. Though the probe into the companies is still going on, the evidence with ED suggests that they complied with RBI guidelines on both the oil they brought home and the commission they paid to agents to procure it. The finding takes on significance in view of the demand of CPM and SP to take action against the companies who did oil-for-food business with the Saddam regime. The probe, which is about to be wrapped up, brings out the readiness of Indian companies to step outside the box to get lucrative oil contracts. “These companies had either made surcharge payments through shipping liners, commission agents or directly to Allai transport company, owned by the Saddam Hussein family. In most of the cases, the alleged bribe went through Allai transportation services. The deals of all major companies have been investigated and the pattern remains the same,” ED sources said. “The alleged surcharge payments were shown by the companies as having paid commission to their agents which was duly conveyed to RBI after the deal was struck,” a senior source said. “There is prima facie no FEMA (Foreign Exchange Management Act) violation as the total money earned by these companies was brought into the country with due acknowledgment,” sources added. After showcause notices are issued to Natwar Singh and his kin, ED will begin cross-examination of representatives of the Indian transport companies on the Volcker allegations of surcharge payments. ED’s scope of investigation hinges on how the Indian companies paid surcharge money to Saddam Hussein. The findings may take the sting out of Left’s attack against government for alleged leniency towards corporates. On Saturday, CPM general secretary Prakash Karat had demanded a probe into the dealings of Indian companies with the Saddam regime. He found support from SP leader Amar Singh on Monday who attacked the government for not proceeding against the corporates. Sources, however, said that the companies may get a clean chit. The ED finding is sure to add to the angst of Natwar Singh. He has made no bones of his anger over being singled out as somebody whose oil-forfood dealings were not above board. SLIPPING ON OIL ED evidence suggests the firms complied with RBI guidelines on both the oil they brought home and the commission they paid to agents to procure it These firms had either made surcharge payments through shipping liners, commission agents or directly to Allai transport company, owned by the Saddam family The alleged surcharge payments were shown by the companies as having paid commission to their agents which was duly conveyed to RBI after the deal was struck No FEMA violation as the total money earned by these companies was brought into the country with due acknowledgment