news from the cpi(m)
March 28, 2009
Press Statement
The Polit Bureau of the Communist Party of India (Marxist) has issued
the following statement:
Investigate the Israeli Missile Contract
The Rs. 10,000 crore missile production deal with an Israeli company,
the Israel Aerospace Industries (IAI), has now been exposed as a deal
involving massive kickbacks besides being an unnecessary contract. The
Left parties had asked in a letter to the Prime Minister in March 2008
that the $ 2.5 billion deal for developing a medium range surface to air
missile with the IAI should not be proceeded with in view of the fact
that the earlier Barak missile deal with the same company is being
investigated by the CBI for kickbacks. The Defence Minister replied to
this letter that if there is any impropriety or violation of law, action
would be taken (letters attached).
An investigative report by the DNA newspaper has exposed the fact that
the Israeli missile deal involves a "business charge" which is six per
cent of the total value (approximately Rs. 600 crore). This makes it a
scam of ten-fold magnitude compared to the Bofors Rs. 64 crore
kickbacks.
The Left parties had written to the Prime Minister again in February
2009 barely three weeks before the contract was signed once again urging
the government not to proceed with the deal (letter attached). The
reason cited was that the DRDO had already developed a missile system
which was superior to the one being offered by the IAI for
co-production. The letter also reiterated that IAI should have been
blacklisted just like the South African firm Denel which is also under
investigation for kickbacks .
Given the seriousness of the charges the government has to answer the
following questions:
1. The IAI had got the contract for the supply of Barak missile in 2000
during the NDA regime. The FIR lodged by the CBI in October 2006 names
IAI as an accused besides naming the Delhi-based arms dealer, Suresh
Nanda and other family members as agents of the Israeli firms IAI and
Rafael Corporation. Why was the IAI not embargoed from further supplies
till the case was disposed off?
2. Was the Government not aware that the Israeli authorities had
investigated the IAI for malpractices in contracts with other countries?
Such charges led to the head of the IAI stepping down in 2005.
3. Was the Ministry of Defence not aware that an Indian agent of the
Israeli company replaced by another petitioned the Israeli defence
ministry claiming additional commissions were due to him?
4. What does the Manmohan Singh government have to say about the DRDO
having developed and field proven its Advanced Air Defence (AAD) missile
capacity? Why was the DRDO compelled to enter into the so-called "joint
development" of the IAI air defence missile when it already has its own
superior AAD missile?
5. Was the Manmohan Singh government not aware of the fact that like in
the Barak missile deal, there are middlemen and intermediaries involved
who are being paid commissions/kickbacks? Was the government not aware
of identity of these agents?
6. How does the Manmohan Singh government explain the six per cent
"business charges" on the total value of the deal? Is this not contrary
to the stipulations against engagement of agents and payment of agency
commissions?
7. Why is it that the contract was signed on February 27, 2009 and the
fact was kept a secret? The information about the date of signing has
now become known from the IAI which has claimed that the Indian
government wanted the signing of the contract to be kept secret.
8. Why did the government get the contract signed on February 27, 2009,
just two days before the announcement of the Lok Sabha elections?
The Polit Bureau of the CPI(M) demands that the missile contract with
the IAI be suspended and an investigation be ordered by the CBI into the
contract with the IAI which should be a follow up of the investigations
into the earlier Barak missile deal.
end of statement
annexures
Annexure1
March 17, 2008
Dr. Manmohan Singh
Prime Minister
Government of India
Dear Shri Manmohan Singhji,
We have been noting with growing concern the manner in which arms deals
with Israel are being conducted. Israel is already the second largest
supplier to India. It is now clear that Israeli arms manufacturers,
including government-owned entities, have been blatantly violating
Indian laws by using middle-men and by giving kickbacks to officials
involved in the decision-making process.
The scam surrounding India's acquisition of the Israeli Barak missile
systems manufactured by the state-owned Israel Aircraft Industries (IAI)
and Rafael corporations is the latest case in point. The original deal
for ship-mounted Barak systems worth about Rs.1300 crore struck in 2000
during the NDA regime was rife with procedural violations and outright
corruption as emerged during the Tehelka expose. CBI's FIR of October
2006 names IAI as an accused, besides naming Delhi-based arms dealer
Suresh Nanda and other family members as agents of the Israeli firms.
The recent CBI raids and consequent arrests of the Nandas and their
associates seem to have added more hard evidence.
Evidence has also emerged in Israel of the bribery and corruption,
including payments to agents in India, indulged in by IAI and Rafael. An
Indian agent replaced by another petitioned the Israeli Defence Ministry
claiming additional commissions due to him, and the matter has even been
referred to the Israeli Attorney General. All this has led to the arrest
and impending prosecution of Moshe Keretz, who headed IAI for 20 years
till 2005, and another agent whose name has been concealed under a gag
order of the Israeli authorities.
A. B. Bardhan
Genera
Regrettably, despite all this evidence, the UPA government has shown a
remarkable reluctance to take action against IAI, Rafael and other
Israeli arms companies. The Swedish firm Bofors was blacklisted after
the involvement of middle-men was proved in the notorious deal. The
South African firm Denel was similarly blacklisted in 2005 for resorting
to agents and kickbacks. But demands that similar action be initiated
against IAI and other Israeli firms have been ignored. Some high
authorities have bent over backwards to argue that the cases were not
similar in some unexplained manner.
To add insult to injury, the UPA government has further cemented the
alliance with IAI by signing a massive $2.5 billion (Rs.10,000 crore)
deal for co-development of more advanced Barak NG (new generation) and
Barak-8 missiles with longer range and for land-based anti-missile
applications. How can India proceed with this deal in the face of
evident wrong-doing by Israeli firms?
By turning a blind eye to systematic violation of Indian laws by Israeli
firms, India is sending out wrong signals to international arms
manufacturers at a time when India is embarking on huge overseas
military acquisitions, with the potential to corrupt and derail the
entire system. These developments also underline the importance of
self-reliance in defence production which has been given low priority of
late.
The Left parties urge the UPA Government to immediately take strong
action against the errant Israeli firms, and also ensure that the CBI
pursues the Barak scam case to its logical conclusion and brings all the
guilty to book.
Sd/-
Prakash Karat, General Secretary, CPI(M)
A. B. Bardhan, Secretary, CPI
Debabrata Biswas, General Secreatary, AIFB
T. J. Chandrachoodan, General Secretary, RSP
end of annexure I
Annexure II is letter from Shri A.K. Antony (soft copy not available)
Annexure 3
February 9, 2009
Shri Manmohan Singh
Prime Minister
Government of India
New Delhi
Dear Shri Manmohan Singhji,
We are writing to you regarding the contract for Air Defence Missile
Systems placed by the MoD on Israel Aircraft Industries (IAI). The
amount involved is around Rs. 10,000 crore for the supply of around 12
such systems. This is surprising considering that such a contract has
been given when IAI is already under investigation of the CBI on charges
of bribery and corruption for the anti-ship, ship-mounted Barak missile
system. We had brought this to your notice in our earlier letter dated
March 18, 2008 about the kickbacks and use of middleman in the Barak
deal, which are in violation of Indian laws. In the past India has
blacklisted firms such as Bofors, Sweden and Denel, South Africa for
similar cases of kickbacks and middleman.
The deal with IAI is also surprising on other counts. First, it involves
systems that have yet to be even developed by IAI, let alone
manufactured and test proven. Secondly, our Defense R & D Organisation
(DRDO) has already developedand repeatedly field proven DRDO's Advanced
Air Defense (AAD) missiles capacity. This missile is capable of
destroying incomingenemy missiles as well as aircraftwhereas aircraft
the proposedIAI missile can deal only with enemyaircraft. The DRDO (AAD)
missile is capable of intercepting even ballisticmissiles at altitudes
upto as high as 18 km. Thus the proposed missiles sought to be developed
by IAI appears to be inferior to the DRDO developed missiles AAD on the
counts of technical, cost and operational readiness.
Thirdly, to give a "cover" of indigenous involvement and content, DRDO
has been forcedto enter into a so-called "joint development" of the IAI
Air Defense Missile even when it already has its own superior AAD
missile!
This deal again brings out the unfortunate influence that Israeli arms
manufacturers including Government owned entities assert on India's arms
purchases. Nothing else can explain why IAI, which is seriously
implicated in corruption in India and in Israel, should be favoured in
this way.
We urge you to get the contract stopped and see that the DRDO's
indigenous missile programme is not subverted in this way.
Yours sincerely
Sd/-
(Prakash Karat), General Secretary, CPI(M)
(A. B. Bardhan), General Secretary, CPI
Copy to: Shri A. K. Antony, Minister for Defence, Govt. of India
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