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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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Embraer aircraft deal: Defence Ministry asks CBI to probe allegations

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By: PTI | New Delhi – September 14, 2016 -The New Indian Express
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.

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”. (AP Photo)
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”. (AP Photo)

The Defence Ministry has asked the CBI to probe allegations that kickbacks were paid in the USD 208 million Embraer aircraft deal that DRDO had struck with the Brazilian aircraft manufacturer during the UPA rule in 2008. Government sources said that since the allegations were of a serious nature, the CBI has been asked to 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.
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. 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).

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”. (AP Photo)

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India-Embraer jet deal under scanner for graft, Defence Ministry seeks firm’s reply within 15 days

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Jugal R Purohit, New Delhi, September 10, 2016 – Indiatoday.in

“We are as surprised as anyone else. If there was an investigation, they should have informed us. This is mentioned in the contract,” said a senior Defence Ministry source.

embraer-story_647_091016015848
Rocked by allegations of corruption in its deal with Brazilian aviation firm Embraer, which is under investigation in Brazil and USA, the Ministry of Defence (MoD) responded by saying it had asked for an explanation from the firm over the matter.
“We are as surprised as anyone else. If there was an investigation, they should have informed us. This is mentioned in the contract,” said a senior source.
Defence Minister Manohar Parrikar who was in Goa following his tour to the US had been briefed over the matter and with his concurrence, a communication was being sent at the time of writing this piece. “Within 15 days, they are to respond,” said the source.
On its side, the DRDO and MoD will begin re-examining their files for anomalies it was informed.
WHAT HAPPENED
The Airborne Early Warning and Control (AEW&C) System is under-development by the Bengaluru based Centre for Air Borne Systems (CABS) for the Indian Air Force. As a part of the deal, the Brazilian aircraft manufacturer modified its jet aircraft, EMB-145 to carry the Active Array Antenna Unit (AAAU), developed by the DRDO, on the aircraft’s fuselage. A total of three modified EMB-145 aircraft had been developed under this agreement.
The various sub-systems of the AEW&C Mission system were integrated into the ‘modified green’ aircraft by DRDO and the full-fledged EMB-145 based AEW&C tested from 2012. The AEW&C system comprises many sub-systems like Radar and communication links that are being designed and developed by DRDO.
WHAT IS AIRBORNE EARLY WARNING AND CONTROL SYSTEM
As the name suggests, this is a mobile, aerial platform to keep an eye on the enemy for any missile launches or fighter plane launches taking place and responding accordingly. It can also be used as a communications platform to direct own planes and missiles, in response.

As per reports which appeared in the Brazilian press, government agencies in Brazil and USA were looking into Embraer’s business deals. It was reported that the firm had hired the services of a UK-based agent for the Indian sale of EMB 145 plane, an arrangement which is disallowed as per the MoD rules.

The deal was concluded in July 2008. A DRDO release from then stated, “A few EMB-145 based AEW&C/AWACS versions are already in operation with Air Forces of Brazil, Mexico and Greece”.

IMPACT OF ALLEGATION

  1. Surprised, Defence Ministry asks Brazilian firm to explain.
  2. Critical project, IAF is awaiting delivery of three planes from DRDO.
  3. DRDO was keen to export this plane with own radar systems to friendly countries.
  4. No action till Embraer explains.
  5. If blacklisted, could curtail India’s options.
  6. India unable to build planes, relies on imports.
  7. IAF uses Embraer for VVIP travel also
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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.