Defence deals, done under the thick, dark cover of national security, are notorious for their lack of transparency. As a result, decision-makers in the defence and political establishments often manage to hide the role of middlemen in swinging deals worth hundreds of crores of rupees. Bofors is India’s most famous defence scandal, with deep political and diplomatic ramifications, but it was neither the first nor the last in a long line of defence purchases that have become keywords associated with the stink of corruption in the public mind. Reports of bribery by the Italian defence firm Finmeccanica in the supply of 12 AgustaWestland helicopters for VVIP transport have thus come as no surprise. Finmeccanica and its top executives have been under investigation in Italy for months, but the Indian government chose to do nothing citing absence of specific, actionable information. With the arrest of Finmeccanica head Giuseppe Orsi, Defence Minister A.K. Antony was left with no choice but to order a probe by the Central Bureau of Investigation into the deal. The charges against the top executives of Finmeccanica and its subsidiary AgustaWestland are specific, with the amount of bribe put at about 10 per cent of the Rs.3,600 crore deal. But the CBI, while following the money trail in India, will need to work in close coordination with the Italian investigators.
When the United Progressive Alliance government chose Mr. Antony as Defence Minister, the rationale was not that the man with a strong reputation for probity would be able to prevent corruption in defence purchases, but that he would act as a shining shield for the political establishment to deflect charges of wrong-doing. But a clean image is no guarantee for efficiency in governance. The fact that the Italians were investigating the payoffs made in the Indian deal was known last year itself but Mr. Antony was slow to act, apparently keener to avoid trouble than to find out the truth. The Bofors case was a classic instance of messed-up investigation and sloppy prosecution. The Italian chopper deal case must not be allowed to go the same way. The issue is not about the choice of specifications or helicopter, but about the kickbacks that have clearly been paid. Evidently, all manufacturers feel compelled to pay bribes disguised as commissions on a percentage basis to middlemen and lobbyists for obtaining supply orders from the Indian government. The Defence Minister needs to show some spine in going after the wrong-doers; otherwise the charges would recoil on him and his party. The efforts must not be directed at escaping blame, but in fixing accountability. A clean image is not protected by skirting around uncomfortable issues.
Keywords: Finmeccanica, AgustaWestland choppers, Italian chopper deal scam, A.K. Antony, Defence Ministry, CBI
Wonder if there is a single deal done in India without corruption and
kickbacks.
Wish Supreme court to monitor CBI probing.
The missing proactiveness on the MOD side is clearly evident here.As
soon as there were reports of some foul play , the minister in charge
should have shown some strong restraint on his part that he means more
transparency in the system as he is the accountable person.Although the
defence dealings are mostly covert in nature but a responsible person
known for his probity should have been leading the way very early.
Anyway, it is no late and the truth must be before the country.
govt. should show courage punishing the corrupt persons instead of
unnecessarily worrying about subsidy and burdening common people by
raising petrol and diesel price while corrupt person are draining the
govt. Exchequer in name of national security.
this way these people one way with black money raising the cost of
living and simultaneously draining the govt. creating a social
imbalance, so govt. should take necessary action before people take
bribe as a new profession.
If we recall the Tatra truck controversy in which the middle man a
retired Army official tried to bribe the then Army chief Gen.
V.K.Singh, then we can gauge the extent of corruption that is rampant
in our defence establishment. There is no doubt that the middlemen try
to take in their vicious loop the Armed forces chiefs and the very top
of the leadership. As the name of erstwhile chief of Air Force has
also come into the picture. Thanks to the probe in Italy that we have
come to know of this scandal otherwise the deal was already a done
thing.
Now, we have to remain vigilant in the upcoming defence and nuclear
power plant deals too, like the MMRCA and the Jaitapur nuclear power
plant too. there will be corruption and there will be an attempt to
compromise national security by few vile men in power. The real
question is are we up to the task of defending our nation from these
few crooks who have taken onto themselves to sell the nation to the
dogs for few copper coins!
What is the issue? Middlemen were paid for the defence purchase. Where is the question of discussing the simplicity and the efficiency of A K Antony? Most of the politicians and the government officers in India are corrupt. Corruption is in all the political parties. I don't see any difference between UPA and NDA in this matter.
If until the arrest of Finmeccanica head Giuseppe Orsi the Defence
Minister,Mr. A.K.Antony did not know about the murky happenings in his
Ministry, the Minister has much to answer for. But he wants the nation
to wait for any answer from him. He is virtually telling the people that
he would revert to the matter after he has found out through a CBI
investigation on what has been going on in the Ministry that he heads.
It is frightening to learn that the Ministry,which is responsible for
the country's security in a dangerous world, is run this way.
No doubt A K Antony has personal clean image, but that does not keep him away from the responsibilities held by him at the helm of his office as a defence minister. We the general public was of the opinion
that since Antony is the Defence deal, he will bring the defence ministry from all corrupt practices. Dear Antony we have faith on you
please do something and protect your image. otherwise there is no
meaning in keeping a personal clean image.
Commissions in defence deals have been the talk of the day since last forty years or so. Those exposed have been investigated but except for political fall out, nothing positive has emerged except long delays in essential procurements. I wish to raise another issue here. when you see sales by any manufacturer/vendor to any government agency there is a declared provision of agency commission which is basically a facilitation charge. To expect a global manufacturer to appoint its own payroll staff in India will remain on our wish list alone, and the necessity of a familiar third party as go getter become a acceptable business practice so as to disown shady moves of agent. The idea that bigger purchase can work out without agents looks impractical. If this is so essential not to have agents, why the government does not make it mandatory for any purchase by any department not involve agents/representatives.
We should investigate quickly and give harsh punishments to culprits in all cases.
While the opinion is very valid and aptly summarizes the aspirational moral direction that the common man wants, it does not layout the root causes of the systemic corruption that has taken over the defense establishment. Lack of audits and common sense approach to procurement under the guise of patriotism has eroded the
confidence in all pillars of the society.
The sad part is that the fourth estate is no exception to the malaise that has taken over the indian society. It is time for the the press to keep 'pressing' these issues and continuing to keep them in the public eye to ensure justice is done!! But will sensationalization of news be the driver or will the press uphold the conscience of the society?
Follow the money is correct approach for investigations but fails to see the justified holistic wealth distribution with regulations for future. Arrest of Finmeccanica CEO Giuseppe Orsi by Italian authorities show that Italy now with elections next week is more concerned about servicing its 99 % people then the Indian rulers as this deal has failed Italy. Middleman in deals act like financial terrorist with no religion and no nationality.
I agree with you fully that A.K. Anthony should spare no efforts to zero in on the truth. But practically speaking it is not as if he is after some minor crooks. I am sure the lead will go the very top of the Government. Issue will be so obfuscated that he will not be able to do any thing tangible.
A well balanced editorial. I agree with you that a clean image is no guarantee for efficiency in governance. Manmohan Singh is a shining example. However, record of NDA government was no better than that of the UPA, although the BJP will now get a god-send opportunity to attack the UPA. It is likely that all other issues will recede into background and this scam will be in the forefront, as it happened in the Bofors case. More the delay in unearthing the money trail, more will the damage to the electoral prospects of the Congress, notwithstanding the Food Security Bill and other vote-catching gimmicks. There is no clarity so far, in this regard. All that is said that a certain family related to the former Air-Chief got one lac Euros. But that is not even Rs. one crore. The amount said to have been paid is more than Rs.300 crores. Where did this money go?
That UPA sat on the files of the chopper deal for about one year, has fuelled suspicion. The MOD indulges only in fire fighting through its move to stall the contract, and to ferret out the details of bribe money, only after the arrest of the CEO. But this has in no way retrieved its credibility and reliability, dented already. Thank the journalists like Chitra Subramanian,whose exposures leave the tall claim of moral high ground by the congress appear hollow and ugly. The second innings of Bofors has taken the sheen of Jaipur chintan and has made the leaders scratch their chin. The Congress' gloves meant for 2014 ring carry many a holes and without sponge to withstand a punch on its face which already is swollen with multiple scams.
As you have rightly mentioned, the Govt should haved acted immediately to order an investigation into the scam as soon as they they were reported by the media sometime last year. Fortunately for the Indian public, the chargesheet issued by the Italian authorities, in which the names of the persons to whom bribes were paid was clearly mentioned, left the Govt with no choice but to order an inquiry by the CBI. However, as the Bofors issue shows, the CBI inquiry will not necessarily result in the arrest and punishment of the guilty.
Please Email the Editor