Singapore Technologies Engineering Ltd (ST Engineering)’s land systems arm, Singapore Technologies Kinetics Ltd (ST Kinetics), refers to various media reports on the debarment by Indian Ministry of Defence (MoD) from business dealings with the Ordnance Factory Board (OFB).
While the Indian media has since 2009 reported that Indian authorities have blacklisted seven companies including ST Kinetics in a corruption investigation (alleged blacklisting), there were no official statements or notifications from the Indian authorities to ST Kinetics on the alleged blacklisting.
Since 2009, we have offered the authorities full cooperation and assistance as appropriate to clear our name. We had even offered on several occasions to open our account books for inspection by the Indian authorities but these offers were never taken up by them. Following the Indian Central Bureau of Investigation’s investigation report (First Information Report) made in May 2009 on its corruption investigations, charges were pressed against several companies and individuals for alleged wrongdoings. However, to-date no formal charges have been made by any Indian authorities against ST Kinetics or any of its employees in relation to the alleged blacklisting.
To seek clarification on the alleged blacklisting and to protest against the arbitrary suspension of ST Kinetics’ defence business activities, we have filed three petitions with the Delhi High Court. The petitions were accepted by the Delhi High Court in March 2011. In all the court hearings and its affidavits filed, the MoD repeatedly stated that ST Kinetics is not blacklisted, and that the “putting on hold” of ST Kinetics’ defence business activities is but an interim arrangement only.
With this latest ruling by the MoD, we will seek legal advice and we intend to vigorously take appropriate actions to clear our name and defend our reputation.
We stress that we have not won any defence contracts in India, now nor in the past, through OFB or the MoD. This development has no impact on ST Kinetics’ defence business as India has not been a market for its defence export sales.
As a responsible public listed company, we abide by all laws and regulations stipulated by the local government and we engage fully in good corporate governance practices.
ST Kinetics (Singapore Technologies Kinetics Ltd) is the land systems and specialty vehicles arm of Singapore Technologies Engineering Ltd. It delivers integrated land systems, specialty vehicles and their related through life support for defence, homeland security and commercial applications.
