Tag Archives: AEW&C

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CAG blows holes in DRDO’s early warning planes

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The auditor has said that operational requirements specified by the IAF were not met and added that there has been a 70% time overrun. (Representative image)

By Shaurya Karanbir Gurung, ET Bureau, Aug 08, 2018
After a Central Bureau of Investigation probe into corruption allegations, the Comptroller and Auditor General has also cast a shadow on an indigenous program for Airborne Early Warning and Control (AEW&C) system ordered by the Air Force.

In a detailed report, the CAG has stated that the project is yet to be fully realised even though it was conceived in 2002, leaving gaps in the IAF’s air-surveillance capability.

The auditor has said that operational requirements specified by the IAF were not met and added that there has been a 70% time overrun.

The central auditor also said selecting the Embraer aircraft as the platform created design constraints and caused the delays. It may be recalled that the CBI is probing allegations that kickbacks were paid in the Embraer aircraft deal that DRDO had struck with the Brazilian aircraft manufacturer in 2008.

The AEW&C is an airborne surveillance system which detects incoming hostile fighters, cruise missiles and drones much before ground based radars.

It also detects enemy troops build-ups, warships and directs friendly fighter jets during combat. The project for the indigenous development of the AEW&C of the IAF was approved by the Cabinet Committee on Security in October 2004 at a cost of `1,800 cr. The CAG, however, said that the project’s total cost up till August 2017 was `2,425 Crore.
Under the project, two AEW&C were to be supplied to the IAF. Banglore based Centre of Air Borne Systems (CABS) of the DRDO was the nodal agency for developing the system.

The CAG says that the IAF had accepted the first AEW&C in February 2017. “However, out of the 18 operational requirements specified by the IAF, eight parameters could not be fully achieved by the AEW&C,” said the CAG report.

Some of these operational requirements are the primary surveillance radar for scanning the airspace to detect targets, the secondary radar to identify friends and foes, and the self protection suite to warn about incoming weapons. The IAF insisted that the eight parameters should be met in the second aircraft. The DRDO agreed to meet five of them, while arguing that the remaining three would not impact operations.

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Government asks CBI to probe in allegations of corruption in purchase of three Embraer aircrafts

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By Express News Service Published: 15th September 2016 – The New Indian Express
NEW DELHI: The Central Bureau of Investigation (CBI) has started analyzing allegations of Brazilian aviation major Embraer hiring a UK-based agent and paying commissions to swing the $208 million deal for three Emb-145 aircraft inked with India during UPA rule in 2008.

The government had asked the agency to probe in allegations of corruption in the purchase of three Embraer aircraft for Defence Research and Development Organisation in 2008

The agency sources said officials are going through the reference and any decision to start a probe in the matter will be taken soon after analysing all the documents.

If the agency is satisfied that it has enough prima facie evidence to initiate an FIR, it will start or else it might register a preliminary enquiry to gather enough material for registering a regular case, they said.

Government had stated that the allegations were of a serious nature and the CBI will probe.

Defence Minister Manohar Parrikar had earlier this week said that, “If there is a criminal angle, then the CBI will probe as the Ministry cannot”. “If only procedural issues are involved, then the Defence Ministry can do an internal investigation,” he had said.

The deal for purchase of three Embraer aircraft during the UPA regime has kicked up dust with US authorities going into alleged payment of kickbacks. The deal has come under the scanner of the US Justice Department which has been probing Embraer for alleged payment of bribes to secure contracts.
Soon after, the reports of irregularity surfaced, the DRDO has already sought a report from the Brazilian firm, which has said it has been looking into graft allegations over the last five years.

DRDO investigation through report from Brazilian firm is a separate investigation. Parallel investigation has been started by CBI

The Special Investigation Team probing AgustaWestland bribery scandal will also probe this scam.

The deal was signed in 2008 between Embraer and the DRDO for three aircraft equipped with indigenous radars for AEW&C (airborne early warning and control systems). The first “modified” aircraft was delivered to DRDO in 2011, with the other two following later.

After several missed deadlines, the AEW&C project is now slated to be completed by December. Present DRDO chief S Christopher was the AEW&C programme director and head of the Centre for Airborne Systems (CABS) before he was chosen to head DRDO in May 2015 by the NDA government.

Sources claimed that role of the committee, comprised of officials from IAF and DRDO is also under scanner, which shortlisted the Embraer deal.

Brazil’s top newspaper, the ‘Folha de Sao Paulo’, had reported on September 8 that the possible bribery in the 2008 Indian deal was under the scanner of the US justice department, which has been investigating Embraer since 2010, after a contract with the Dominican Republic raised suspicion. The scope of the investigation has now been widened to examine Embraer’s dealings with eight other countries, including India and Saudi Arabia.

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After Agusta cloud, Embraer deal under scanner

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NEW DELHI, September 10, 2016 – THE HINDU

Brazilian aircraft major Embraer is alleged to have resorted to bribes, used middlemen to secure contracts.

Brazilian aircraft major Embraer is alleged to have resorted to bribes and used middlemen to secure contracts in India and Saudi Arabia. In India’s case, the payoff was done to a United Kingdom-based middleman in the deal for three Embraer aircraft ordered by the Defence Research and Development Organisation for building indigenous Airborne Early-Warning and Control Systems aircraft for the Indian Air Force.
Brazilian aircraft major Embraer is alleged to have resorted to bribes and used middlemen to secure contracts in India and Saudi Arabia. In India’s case, the payoff was done to a United Kingdom-based middleman in the deal for three Embraer aircraft ordered by the Defence Research and Development Organisation for building indigenous Airborne Early-Warning and Control Systems aircraft for the Indian Air Force.

India has asked an explanation from the Brazilian aircraft-maker Embraer following media reports of an international investigation into the alleged payment of bribes to secure an aircraft deal in 2008.

Embraer is alleged to have used bribes and involved middlemen to secure contracts in India and Saudi Arabia. In India’s case, the payoff was made to a U.K.-based middleman in the deal for three Embraer aircraft ordered by the Defence Research and Development Organisation (DRDO) for building an indigenous Airborne Early Warning and Control Systems (AEW&C) aircraft for the Indian Air Force. A Defence Ministry spokesperson said on Saturday that the DRDO sought an explanation and details from the manufacturer within 15 days.

Under watch since 2010

According to Brazilian newspaper Folha de Sao Paulo, Embraer had been under investigation by the United States Justice Department since 2010 “when a contract with the Dominican Republic raised the Americans’ suspicions.”

“Since then, the investigation has widened to examine business dealings with eight more countries,” the report said.

The newspaper reported that the company was cooperating in the investigations, and “is expecting to reach a deal soon with American authorities” and has even set aside $200 million to pay “any eventual fines that come about as a result of the process”.

The newspaper has quoted Albert Phillip Close, manager of Embraer’s defence area, as having admitted to the authorities as part of a plea bargain that in the case of India, the aircraft major had contracted a representative to assist in the sale of a surveillance system to the government.

$208-million deal in 2008

India had signed a $208-million deal in 2008 for procuring three Emb-145 aircraft. The planes were delivered beginning 2011 and the project is now nearing completion after a series of delays.

This is the second major defence deal under the scanner after the VVIP chopper case involving Agusta Westland and both the deals were signed by the previous United Progressive Alliance government.

Indian defence procurement prohibits the employment of middlemen in defence deals.

The Defence Ministry spokesperson when asked about the reports said the DRDO will seek explanation and details from manufacturers of Embraer aircraft on media reports on the 2008 deal.

“On receipt of information by the DRDO, further steps may be initiated,” he said.

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DRDO to seek explanation from Embraer over kickback allegation

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By: PTI | New Delhi | Published:September 10, The New Indian Express

The deal was signed in 2008 between Embraer and the DRDO for three aircraft equipped with indigenous radars for AEW&C (airborne early warning and control systems).DRDO_Logo_New copy

 

India’s defence research agency DRDO will seek explanation and details from Brazilian aircraft maker Embraer over alleged payment of kickbacks in the USD 208-million jet deal inked during the UPA regime. After receipt of information by the Defence Research and Development Organisation (DRDO), further steps may be initiated, the Defence Ministry said today after it emerged that the 2008 deal has come under the scanner of US authorities which have been probing Embraer for alleged payment of bribe to secure contracts.
“DRDO to seek explanation and details from manufacture of Embraer aircraft on media reports on aircraft deal signed in 2008. “On receipt of information by the DRDO, further steps may be initiated,” the Ministry said. The deal was signed in 2008 between Embraer and the DRDO for three aircraft equipped with indigenous radars for AEW&C (airborne early warning and control systems). The company has been under investigation by the United States Justice Department since 2010 when a contract with the Dominican Republic raised the Americans’ suspicions.
Since then, the investigation has widened to examine business dealings with eight more countries. “Investigations that have been opened by the government of the United States to establish whether Embraer paid bribes in order to obtain contracts abroad have affected deals that the Brazilian company closed with Saudi Arabia and India,” Brazalian newspaper Folha De São Paulo reported. It is suspected that a leading Indian middleman based in UK was roped in for the deal. DRDO chief S Christopher, who headed the AEW&S programme earlier, did not pick up calls or respond to messages.
Embraer is cooperating with the investigations and announced in July that it was expecting to reach a deal soon with American authorities, the paper said. The company has put USD 200 million aside to pay any eventual fines that come about as a result of the process. The company has not released details regarding the state of the investigations, but three people who have been following the case have confirmed to Folha that the deals concluded in Saudi Arabia and India are being examined, the paper reported.
In both cases, suspicions were underlined in May this year when an employee with more than 30 years at the company reached a plea-bargain agreement in investigations being conducted by the Federal Public Prosecutor’s Office in Brazil. Albert Phillip Close, Manager of Embraer’s defence area, told Prosecutor Marcello Miller that he had heard a former sales director who worked in Europe admit to American investigators the payment of commissions to facilitate the sale of aircraft to the Saudis.
In November of 2010, the company announced the delivery of two Embraer 170 executive jets to the Saudi Arabian
state-owned oil company Aramco. The amount of the deal was not announced at the time.