Tag Archives: Emb-145 aircraft

Modi government plans to launch team to probe defence scams

By Pradip R Sagar Published: 18th September 2016 – The New Indian Express

CBI director Anil Kumar Sinha
CBI director Anil Kumar Sinha

NEW DELHI: With an extremely poor track record of probing defence bribery scandals, the country may have a special team to investigate such cases. Prime Minister Narendra Modi-led government is contemplating a proposal to constitute the team.

The proposal came up for discussion at a meeting in the Cabinet Secretariat recently where key officials suggested an independent team, which can be tasked to investigate only the high-profile scams that have hit the corridors of the defence ministry. Investigators can be drawn from the CBI to coordinate with the ED, to follow the money trail involved.

The government is planning to launch a special team only to investigate defence scandals. This comes in the backdrop of 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 the UPA rule in 2008. The Defence Ministry has forwarded the matter to the CBI, which has filed a preliminary inquiry and initiated a probe.
From 1986 Bofors, HDW submarine, Tatra to AgustaWestland, Indian investigators have miserably failed on prosecution as majority of the scams hit dead-end and closure was filed by investigating agencies. Government believes that such scams not only bring bad image to the country, but also causes embarrassment globally. The only roadblock, however, will be sparing officials from the CBI, the federal agency which is already short-staffed. In a recent affidavit in the SC, the CBI informed that it has 50 per cent of its staff on deputation and has a vacancy of 754, against its sanctioned strength of 4,544. Of these, 283 vacancies are at the levels of inspector, 195 of constable and head constable, 65 at deputy and additional superintendent of police, 41 at SP and senior SP level and 12 are of Deputy Inspector General.

“Repeated failure of investigating agencies especially in probing defence scams is surely a cause of worry for the government, as it creates a lot of hype. Forming an independent team of selective officials to handle bribery allegations in defence deals will be an option, as most of these probes require overseas intervention,” said a high-ranked official. It ultimately turns out to be diplomatic loss of face for the government after naming foreign companies and middlemen during the course of investigation.

Like in the recent case of AgustaWestland choppers, despite so much of noise in Parliament, CBI has failed to arrest anyone.the-sunday-standard-18-september-16

CBI will probe Embraer deal if evidence of criminality found, says Parrikar

September 11, 2016 – THE HINDU
‘Will make a statement only after studying the DRDO report’

Defence Minister Manohar Parrikar on Sunday said he might recommend a CBI probe into the Embraer aircraft deal if it displayed “criminal nature” after the DRDO wrote to the Brazilian company seeking details of the deal involving three EMB 145 aircraft.

“I have directed the DRDO to send a complete report on the deal by Monday. I will study the report first before making any concrete statement on the issue but I can tell you as of now that if it displays criminal nature, I will hand over the case for CBI probe,” Mr. Parrikar told media persons in Vadodara.

He said: “If there were procedural issues, then an internal inquiry will be ordered.”

The deal

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.

A U.S.-Brazil investigation into the Embraer deal, uncovered a bribery case, leading to a deal between the company and DRDO in 2008.

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.”

India had signed a $208-million deal in 2008 for procuring three Emb-145 aircraft.

CBI may probe Embraer deal, if needed, hints Parrikar

ANI | Sep 11, 2016,- The Times of India
VADODARA: With the Defence Research and Development Organisation (DRDO) writing to Brazilian company Embraer, seeking details on a report that it employed an agent to sell three EMB 145 aircraft to the DRDO in 2008, defence minister Manohar Parrikar on Sunday asserted that if the issues display a criminal nature, then it will be handed over to the Central Bureau of Investigation.
Speaking to the media here, Parrikar stated he has asked the DRDO to submit a complete report on the matter on Monday, and it will be only after that that he can make a concrete statement.
“I am not going to give a knee-jerk reaction and just make a statement based on rumours. I have asked for a report, which will be submitted on Monday, and if the issues are of a criminal nature, then we can forward this case to the CBI for a criminal investigation. If there are just procedural issues, then we can do an internal investigation,” Parrikar said.
Admitting that he was himself unaware on several nuances of the issue since it happened in 2008, the defence minister reiterated that he will make a composite statement on the case only after he gets the report on Monday.
Meanwhile, the Bharatiya Janata Party (BJP) has asked the Centre to probe the aircraft bribery allegations linked to manufacturers of the Embraer.
A joint US-Brazil investigation into Embraer has uncovered a bribery case leading to a deal signed between the company and DRDO in 2008 for three aircraft equipped with indigenous radars for AEW&C (airborne early warning and control systems).
The company has been under the scanner of the United States Justice Department since 2010 after a contract with the Dominican Republic raised suspicions.
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After Agusta cloud, Embraer deal under scanner

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.