Tag Archives: VVIP chopper

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.

Defence deals stuck due to lobbying, Parrikar says

TNN | Nov 13, 2014, 12.29AM IST
PANAJI: Defence minister Manohar Parrikar on Wednesday said most defence deals are stuck because of lobbying, vested interests, and kickbacks that happened during the last 10 years of Congress rule at the Centre. He said his priority is to clear the controversy and speed up acquisition in a transparent manner.

“My target is to clear all weapons purchase deals one by one on a priority basis, beginning next week,” said the country’s new defence minister, adding that he will also strengthen the army’s fighting capability, logistics, and infrastructure. He further said he will strengthen the armed forces with pre-emptive measures that discourage cross-border firing on the line of control.

He said India need not worry about Pakistan or China or any other country as the country’s defences are strong.
Speaking to party workers on his maiden visit to Goa after being sworn into the Union Cabinet, he said that after being extensively briefed over the last two days, he has realized that India has no need to worry about any other country.

Parrikar, who is on a five day visit to Goa, told media persons that everybody knows what happened in the Agusta Westland VVIP chopper deal and there was a question mark raised on the acquisition of fighter aircraft for the Indian Air Force (IAF). He refused to elaborate on the fighter aircraft deal.

“Most (defence) acquisitions made have some controversy. I don’t want to go into the details, but my job is to clear the controversy,” he said, adding that the more you go in for tightening on corruption, the more you raise the question, and the deals get more complex, and one should adopt a transparent method where no questions are raised.

Asked to react on incursions in Arunachal Pradesh by the Chinese military, Parrikar said this type of incursion and crossing the imaginary line of control happens many times in many sectors, but it is taken care of on the same day or within a couple of days. “Except on one or two occasions, there has been no serious incident.” He added the ministry will take steps to avoid such incidents in the future.

He said he will look at the country being able to produce indigenous weapons based on Prime Minister Narendra Modi’s ‘make in India’ concept. He also said that revamping of the DRDO is on the cards, but “as of now I have not taken any decision. Right now, I want them to perform”. He further said the ministry will concentrate on improving training capacity, and filling up vacancies of officers in the army.

Parrikar was given a rousing welcome at the Dabolim airport by Goa chief minister Laxmikant Parsekar and the state cabinet.