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Drdo

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.

 

Drdo

Policy bankruptcy in DRDO – hype to create artificial crisis

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डीआरडीओ में नीति का दिवालियापन – कृत्रिम संकट पैदा करने के लिए प्रचार
To                                                                                                                                 28th May 2014
Sh. Narendra Modi,
Prime Minister,
Room No – 152, PMO,
South Block, NEW DELHI -110011

With 64 Crores annual budget in 1980, when Dr. V S Arunachalam took over as Scientific Adviser, the budget allocation enhanced to 1100 crores with missions made to develop missiles under IGMDP program.

That was the beginning of infrastructure development and deteriorating of scientific research and development. By March every year i.e. the closer of financial year, everyone from Scientist ’B’ to SA to RM office were looking for procurement cases only and those who met the expenditure by any means were rewarded with scientist of the year award.

However the conscious financial officers use to raise objections, so special provisions were made and duly approved by ministry. SA to RM was given special powers to procure under single quotation more than Rs. 10 lakh where procurement committee could be bypassed. This decision was taken to facilitate the speedy development of technology for missiles.

The incumbent after Kalam, further modified the single tender purchase and the SA office granted permission for procurement of one lakh rupees only.

The cases were raised left and right on single tender procurements, where hefty sums were returned to indenter as kickback. This procedure became a culture of DRDO and when in 2006 DRDO Purchase Manual was introduce and policy was framed, Directors powers were raised to 50 Lakhs rupees with Hqrs. rep in crores and SA’s power raised up to 50 crores.

When previous Defence Minister Sh. A K Antony noticed the foul smell, he ordered CGDA for special audit of DRDO. CGDA found that DRDO Directors including Scientific Adviser misused the funds by splitting procurement orders within their limit of sanction power. They fooled the country in all possible ways. A well known fact is that 70% of DRDO requirements come from foreign countries; it means that DRDO is wasting precious foreign currency which is hard earned by the country.

DRDO procured, in last 10 years, thousands of crores of rupees equipments and these equipments are lying idle in various Lab premises and waiting for their departure to the scrap house.

With the passage of time DRDO has become a dumping ground of obsolete technology and a way to needlessly waste the poor tax payers’ money without any end result.

Honorable Prime Minister is requested to overhaul the DRDO structure totally and take strong actions to implement Accountability.

With warm regards

Prabhu Dayal Dandriyal
21-Sunderwala, Raipur, Dehradun-248008
Phone – 2787750, Mobile- 9411114879,
E-mail id prabhudoon@gmail.com, Website – www.corruptionindrdo.com