Indian UN official arrested for fraud
Dharam Shourie in New York

November 02, 2006 11:25 IST
A senior official of the Indian Defense Auditing Services, who was on deputation to the United Nations, was arrested here for allegedly steering $ 50 million worth of UN contracts to Indian firms in return for valuable real estate in Manhattan.

Sanjay Bahel, who was the chief of the UN Commodity procurement section, was suspended by the world body in August on charges that he bent rules to help Telecommunications Consultations of India get contracts worth millions of dollar.

Indian businessman Nishan Kohli was also arrested in connection with the case from Miami on Wednesday.

The indictment was unsealed on Wednesday in a US district court, which accused Bahel of taking bribe in valuable real estate from Kohli for steering millions of worth of contracts to his company

The investigation against Bahel was part of the inquiry set off by the Volcker Committee report in the Iraqi oil-for-food programme, which had cast doubts on contacts given by peacekeeping department of the United Nations.

Bahel, who was in the field procurement unit of the procurement department of the United Nations, was investigated for bending the rules to steer millions of dollars worth of contracts to Indian firms.

"If convicted, they could be sentenced up to ten in years in prison and the government is also seeking forfeiture of Bahel's interests in the apartment in midtown Manhattan which, the prosecutors allege, was bought by Kohli in 2003 and sold to Bahel at a very low price in 2005.

Bahel and family are alleged to have lived in that apartment paying little or no rent.

The arrests followed investigations carried out independently by US investigators following information provided by the United Nations.

Bahel was in the procurement division until 2003 when he was transferred to the UN Postal Administration as Chief of commercial services as the world body's Office of Internal Oversight began the inquiry. He was suspended on August 31 without pay after he was charged with misconduct in connection with the procurement activities.

Even as the internal investigations were going on, Manhattan District Attorney was carrying out its own inquiry.

The United Nations provided the result of its investigations both the United States Authorities and the Indian government.

Secretary-General Kofi Annan had lifted his diplomatic immunity in consonance of his declared policy that he would do so in case of any officer who is charged with criminal wrongdoing.

A UN employee, who is charged with criminal wrongdoing, can be prosecuted in the country he or she had committed alleged crime.

The indictment charges him with inviting re-bids to ensure that Kohli's companies get the contracts and also providing him with access to information not available to other bidders.
- http://www.indianpad.com/view/17064