Indian PM defiant on oil charges

Manmohan Singh says he is keen to unearth the truth

India's PM has said allegations that his former foreign minister benefited from a UN oil-for-food programme in Iraq are unsubstantiated.

Prime Minister Manmohan Singh said his government's inquiry into the matter was a "search for truth".

On Monday, Natwar Singh stepped aside as India's foreign minister.

Natwar Singh and the main party in India's ruling coalition, Congress, were both named in a UN report into the scandal. Both deny any wrongdoing.

Speaking in the northern state of Bihar, the prime minister appeared to dismiss the allegations.

"Some unsubstantiated references have been made. There is no evidence," he told reporters.

"Anyone can write names. We want to... find out the truth. This is a matter of pride for our government."

'Not a coward'

Natwar Singh is the first political casualty of a UN report, published last Thursday and written by the former US Federal Reserve chairman, Paul Volcker.

I am not a coward. I am standing here and I can answer to the whole world Natwar Singh Analysis: Crisis contained Profile: Natwar Singh

It said more than 2,000 firms made illegal payments to Saddam Hussein's government.

Under the UN programme, Saddam Hussein's government could sell oil as long as the proceeds were used to buy humanitarian goods.

On Tuesday, Natwar Singh once again said he was innocent and ready to face any investigation.

"Can you believe that the Congress Party, which has produced several great leaders like Mahatma Gandhi... can sell oil for money?" he told supporters gathered at his official residence in Delhi.

"I am not a coward. I am standing here and I can answer to the whole world.

"The Congress Party and I are not afraid of any probe."

The Indian government has said that a retired Supreme Court judge, RS Pathak, will head the judicial inquiry.

Former Indian UN official, Virendra Dayal, has also been appointed to gather information about the charges.