This is a surprise forward from Venu!!

On Sun, Mar 29, 2009 at 8:20 AM, Venugopalan K M <[email protected]>wrote:

>
>
> 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.
>
> --
> http://venukm.blogspot.com/
>
> >
>

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