A newspaper article had appeared in the Times of India, New Delhi edition dated Jan 25, 2008 captioned “After Barak, Phalcon deal under cloud”, alleging irregularities on the part of Israel Aerospace Industries (IAI) in defence contracts including payment of commissions in the procurement of Airborne Warning and Control System (AWACS) aircraft by the Indian Air Force.
The matter was taken up with the Israeli Ministry of Defence who had informed that they had no document or report pertaining to the investigation regarding IAI. Both the Israeli State Comptroller and the Economic Crimes Department in their State Attorney’s Office (in charge of this investigation) had made clear that their investigations focused on alleged IAI procedures and practices without any references or connection whatsoever to the Indian transaction or Indian citizens.
Further, the State Comptroller had issued no report on his inquiry and the police investigations ended with no charges being pressed against any person. No other information has been received in this regards.
This information was given by Defence Minister Shri AK Antony in a written reply to Shri P Rajeeve in Rajya Sabha today.
CBI Investigation into Murky Defence Deals
As per available information, CBI has not investigated into defence deal concerning procurement of Russian Aircraft Carrier ex-Admiral Gorshkov. CBI had conducted investigation into HDW submarine case and their closure report was accepted by the Special Judge, Patiala House Court, New Delhi on March 04, 2005.
The objective of Defence Procurement Procedure is to ensure the expeditious procurement of approval requirements of the Armed Forces in terms of capabilities sought within time frames prescribed by optimally utilizing allocated budgetary resources.
While achieving this objective, these procedures would demonstrate the highest degree of probity and public accountability, transparency in operations, free competition and impartiality.
The provisions incorporated in Defence Procurement Procedures for achieving this objective include:
(i) an ‘Integrity Pact’ between the Government department and the bidder for all contracts above Rs. 100 crores;
(ii) Dealing directly with Original Equipment Manufactures(OEM) or Authorized vendors or Government Sponsored Export Agencies (applicable in case of countries were domestic laws do not permit direct export OEMs);
(iii) Major decisions in the acquisition process being taken in a ‘Collegiate’ manner (iv) Enhanced transparency in the conduct of field trials;
(v) Pre-bid meeting with vendors;
(vi) Prohibiting the use of undue influence by the seller for obtaining any contact with the Government;
(vii) Prohibiting the engagement of any individual or firm to recommend to the Government the award of a contract to the seller; and
the payment of any amount in respect of any such recommendation.
This information was given by Defence Minister Shri AK Antony in a written reply to Shri Bhagat Singh Koshyari in Rajya Sabha today.
Case of Corrupton against Chairman Of Ordnance Factory Board
During May 2009, CBI had arrested Shri Sudipta Ghosh, former DGOF and Chairman/OFB on charges of demanding and obtaining illegal gratification, criminal conspiracy and criminal misconduct under Section 8, 10, 12 & 13 of the Prevention of Corrupton Act, and Section 120B of IPC.
Prior to his appointment as DGOF & Chairman, OFB, disciplinary proceedings were held against Shri Sudipta Ghosh, then Addl. GM, Ordnance Factory, Khamaria, for alleged irregularities in the procurement of Boxes for packing ammunition. In that case an inquiry was held and on the basis of the Inquiry Officer’s report and the representation of the officer, the case was examined in the Ministry of Defence in consultation with Central Vigilance Commission (CVC).
As per the advice of the CVC and the approval of Disciplinary Authority, charges against Shri Sudipta Ghosh were dropped. The procedure adopted to take a decision in this regard is not being reviewed.
This information was given by Minister of State for Defence Shri MM Pallam Raju in a written reply to Shri Shreegopal Vyas in Rajya Sabha today.
Companies blacklisted in CBI’s Charge-Sheet
The names of the seven companies named in CBI’s FIR registered against the Ex-chairman, Ordnance Factory Board are:
–Israeli Military Industries, Israel;
–Singapore Technology, Singapore;
–BBT, Poland;
–Media Architects Pvt. Ltd. Singapore;
–HYT, Pune;
–TS Kissan & Co. Pvt. Ltd., New Delhil;
–RK Machine Tools, Ludhiana
The Ministry of Defence has decided to put on hold for the present all pending procurement and acquisition cases involving the above mentioned firms figuring in the FIR registered by CBI.
This information was given by Minister of State for Defence Shri MM Pallam Raju in a written reply to Mohd Amin and Shri Tapn Kumar Sen in Rajya Sabha today.
Manufacturing of Anti-Land-mine Vehicles
Anti-landmine vehicles are manufactured in India and carry, among others, the standard instruments fitted in an automobile. However, anti-landmine instruments are not being manufactured.
Ordnance Factory Board has manufactured the following numbers of anti-landmine vehicle in the past five years;
–2004-05: 36
–2005-06: 101
–2006-07: 28
–2007-08: 18
–2008-09: 60
Anti-landmine Vehicles are usually used for protection of personnel against Improvised Explosive Devices (up to 14 kg of TNT)
This information was given by Minister of State for Defence Shri MM Pallam Raju in a written reply to Shri Shreegopal Vyas in Rajya Sabha today.
Budgetary allocation for Defence
India’s policy has been to build up defence preparedness while not advocating and arms race.
The percentage increase in 2009-10 over our defence allocation in 2008-09 is 23.65 %.
Till March 2009, 99.61% of the 2008-09 defence allocation (revised estimate) was spent as per unaudited figures.
This information was given by Defence Minister Shri AK Antony in a written reply to Shri Vijay Jawaharlal Darda in Rajya Sabha today.
