A
heated debate took place in the Rajya Sabha on the alleged corruption and
irregularities in the VVIP Chopper Deal (Agusta Westland Deal) between the treasury
benches and the opposition.
Many
important points were made in the Parliament by various members, especially
from the opposition benches. Congress leaders laid out authenticated facts,
while the Defence Minister Manohar Parrikar read out a 45 minute long written
statement which looked as if it was a monologue with no concrete answers to the
‘Short Duration Debate’ at hand where various members across party lines had
raised concerns ranging from National Security to Defence Procurement Policy to
the inability of the present Modi Government to nail down any one in the
bribery deal.
Many
opposition parties and BJP allies cautioned the Government and the BJP to
exercise restraint and take action against the culprits in the scam rather than
just ranting against the Congress party. Sharad Yadav from the JD (U) used a
very earthy term “BJP Ke Log Sirf Gaal
Baja Rahe Hai” (BJP is only shouting) and urged the Government to ‘act more
and talk less’. Ram Gopal Yadav from the SP, Mayawati from the BSP and even
Sanjay Raut from the Shiv Sena echoed the same sentiment.
It
is the Modi Government which is in power since the past two years, and instead
of bringing the culprits to the book, they are just shouting from all forums
and telling the Congress leaders to come clean on the issue.
BJP
President Amit Shah goes on repeating “Ulta
Chor Kotwal Ko Daate”- The “Kotwal” from 2004-2014 was the UPA Government-
and it took every action necessary in order to bring the culprits to the book.
Now since the ‘Kotwal’ has changed – It is Shri Modi’s NDA Government since the
past two years, we want to ask what steps they have done to punish the
‘culprits’ of this deal.
Does
Shri Amit Shah, go against his masters ‘Saheb’ in bringing Former Air Chief
Marshall, Shri S.P. Tyagi to book- who is the main accused in this scam? What
is the connection between Air Chief Marshall, Shri S.P. Tyagi and Shri Ajit
Doval (present NSA & Director of Foundation) as also Shri Nripendra Mishra,
PS to Prime Minister?
Did
Vivekananda Foundation take any bribes or kickbacks on the pretext of Shri
Tyagi being its board member? Did Shri Ajit Doval also help the Vivekananda
Foundation through these funds? Why doesn’t Shri Modi – who is ‘Kotwal’ now,
order a CBI enquiry into the funds of Vivekananda Foundation?
Infact,
the Defence Minister mislead the August House when he parroted incorrect
information on the floor of the House regarding the deal.
Lets look at some of the hard facts in the
entire saga surrounding the Agusta Deal
STATEMENT OF FACTS OF AUGUSTA
WESTLAND
1(i) August, 1999
Indian
Air Force (IAF) proposed replacement of MI-8 VIP Helicopters on account of
severe operational constraints and completion of total technical life.
(ii) March,
2002
Global
Request for Proposal (RFP) was issued. Four vendors responded. Many helicopter
manufacturers including Russian Helicopter MI-172 and Augusta Westland etc.
could not bid as they did not complete the mandatory Operational Requirements
(ORs).
(iii) 19.11.2003
Principal
Secretary to then Prime Minister, Shri Atal Behari Vajpayee took a meeting. In
the meeting, it was decided to keep the Operational Requirements (ORs) at an
altitude of 4,500 metres against the original 6,000 metres.
(iv) 22.12.2003
Principal
Secretary to then Prime Minister, Shri Atal
Behari Vajpayee wrote a letter dated 22.12.2003 to Air Chief pointing
out that PMO and SPG should have been consulted while framing mandatory
Operational Requirement (ORs). He suggested that Chief of Air Staff and Defence
Secretary should review and draw up realistic mandatory requirements.
(v) March,
2005 to September, 2006
Operational
Requirements (ORs) were deliberated at length between IAF, NSA, SPG, PMO and
Ministry of Defence. Consequently, an operational altitude of 4,500 metres as
also other configurations were arrived at as earlier decided.
For
reference to 1(i) to (v) above, please see paras 1 to 6 of PIB
press release dated 14.02.2013 of Defence Ministry (Source: http://pib.nic.in/newsite/PrintRelease.aspx?relid=92237
)
2. 27.09.2006
Request
for Proposal (RFP) was issued for 12 Helicopters to six vendors.Three vendors
namely (a) M/s Sikorsky, USA; (b) M/s Augusta Westland, UK and (c) M/s
Rosboroneexport, Russia responded to the RFP. Rosboroneexport ,
Russia did not submit
earnest money deposit or sign the Integrity Pact leaving the other two i.e. Sikorsky , USA
3. 08.02.2010
After
negotiations and approval from Cabinet Committee on Security (CCS), Contract
for 12 AW-101 VVIP helicopters was awarded to Augusta Westland, UK. Contract
with Augusta Westland categorically envisaged as follows:-
(i) It included specific contractual provisions
against ‘bribery’ and use of ‘undue influence’. Article 22 of the Contract
dealt with penalty for use of ‘undue influence’. Article 23 of the
Contract contained a complete prohibition on the seller regarding dealings
through an agent or payment of any agency commission to any individual or firm.
(ii) In addition to the above provision, Augusta
Westland had also signed ‘Integrity Pact’ with the Government of India.
Under the ‘Integrity Pact’, bidder committed itself to take all measures
necessary to prevent corrupt practices, unfair means and illegal activities
during any stage of the bid or during any pre or post contract stage. Any
breach thereof would result in forfeiture of earnest money, performance bond,
cancellation of contract etc.
This was
done to ensure complete transparency and integrity of the process.
(Please
see para-18 of PIB press release dated 14.02.2013 of Ministry of
Defence - http://pib.nic.in/newsite/PrintRelease.aspx?relid=92237)
4. February, 2012 and 16.07.2012
News
reports of unethical dealings surfaced in February, 2012. Defence Ministry of
the then UPA government directed its Embassy to seek relevant information. As
no information was forthcoming, Embassy in Italy
was asked and it made a formal request on 16.07.2012 to Naples
(Italy
(Please
see PIB press release dated 12.12.2012 of Ministry of Defence(http://pib.nic.in/newsite/PrintRelease.aspx?relid=90429)
and para-26 of PIB press release
dated 14.02.2013 of
Ministry of Defence (http://pib.nic.in/newsite/PrintRelease.aspx?relid=92237)
5. 19.04.2012 and July, 2012
On
19.04.2012, Ministry of Defence wrote to CBI and Enforcement Directorate
(ED) for examining the issue as news reports were suggesting allegations of
corruption against various persons. In July, 2012; Enforcement
Directorate (ED) informed Ministry of Defence that it was enquiring into the
allegations.
(Please see para-31 of PIB press release dated 14.02.2013
-http://pib.nic.in/newsite/PrintRelease.aspx?relid=92237)
6. November, 2012 and January, 2013
In
November, 2012; Director, Income Tax (Investigation) wrote to Defence Ministry
seeking information on allegations against possible middlemen. In January,
2013; Ministry of Defence conveyed the entire facts to Income Tax
authorities.
(Please
see para-32 of PIB press release dated 14.02.2013 of Ministry of
Defence - http://pib.nic.in/newsite/PrintRelease.aspx?relid=92237)
7. 12.02.2013 and 25.02.2013
News was
reported with regard to arrest of Mr. G. Orsi, CEO of Finmecanica/Augusta
Westland for financial malpractices in procurement of 12 helicopters for Indian
Air Force.
On
receipt of news reports, Defence Ministry asked CBI to register a case. CBI
registered a case on 12.02.2013 against six companies i.e. M/s Finmecanica , Italy ;
Augusta Westland, UK; IDS, Tunisia ;
Infotech Design System, Mauritius ;
IDS Infotech Limited, Chandigarh and Aeromatrix
Infotech Solution, India
Finally
on 25.02.2013, CBI registered a
Preliminary Enquiry (PE) in the matter.
(Please
refer to reply dated 06.03.2013 to Parliament Question No. 961 as
also reply dated 11.12.2013 to Parliament Question No.669)
On 13.02.2013,
Defence Ministry also asked the Embassy in Rome to send a factual report
qua arrest of Mr. G. Orsi as also nature of charges framed and other relevant
details besides taking up the matter with the Judge for the Preliminary
investigation. On 15.02.2013, Indian Embassy in Rome forwarded a
response from the Judge pointing out that as investigations are at a
preliminary stage, same are covered by ‘Secrecy’ in terms of Article 329 of
Code of Penal Procedure in Italy. It was also added that as Secrecy obligations
are over, they would examine a new request from India.
(Please
refer to reply dated 11.03.2013 to Parliament Question No.
2147)
8. 15.02.2013
Show
Cause Notice was given to Augusta Westland
qua cancellation of the Contract.
It was
also decided to (a) put on hold the operation of the Contract relating
to procurement of helicopters; and (b) stop further payment to Augusta
Westland.
It was
further decided that no contract negotiation was to be held with Augusta
Westland in any capital procurement case.
(Please
refer to reply dated 11.03.2013 to Parliament Question No.
2259)
9. 20.02.2013 to
11.12.2013
Pursuant
to Show Cause dated 15.02.2013 by GoI to Augusta Westland for cancellation of
Contract, multiple correspondence and replies dated 20.02.2013, 04.03.2013,
11.03.2013, 18.03.2013, 10.04.2013, 16.04.2013, 04.10.2013, 20.11.2013,
25.11.2013 and 11.12.2013 were exchanged between the two parties i.e. GoI and
Augusta Westland vis-Ã -vis cancellation of the Contract. In course thereof,
even personal hearing was granted by GoI to Augusta Westland on 20.11.2013.
10. 27.02.2013
The then
Defence Minister, Shri A.K. Antony proposed to set up a JPC to examine
Augusta Westland case by moving a motion in Rajya Sabha. BJP as also the
then Leader of Opposition in Rajya Sabha, Shri Arun Jaitley refused the offer
by saying that it is an exercise in futility. BJP demanded a Supreme
Court-monitored investigation.
11. May, 2013
Government
of India received the first set of papers from Italy regarding Augusta
Westland including copy of search and seizure order issued by the Judge for
the preliminary investigation, copies of certain contracts entered by a
shareholder of Augusta with various entities in Tunisia, India etc.
(Please
refer to reply dated 08.05.2013 to Parliament Question No.
4540)
12. July to
December, 2013
‘Letter
Rogatory’ was issued to various countries
including Mauritius, Tunisia, Italy etc. by ED and CBI.
(Please
refer to reply dated 19.08.2013 to Parliament Question No. 1977)
This fact
of issuance of ‘Letter Rogatory’ in July, 2013 and December, 2013 by CBI and ED
has been admitted by Government of India also as recently as on 29.04.2016 in a
PIB press release (http://pib.nic.in/newsite/PrintRelease.aspx?relid=142592
)
13. 01.01.2014
The then
UPA government terminated the Contract with Augusta Westland.
Consequent
thereto, the then UPA government proceeded to encash two Indian bank
guarantees amounting to Rs.240 crore approximately.
Further,
a demand was made on Deutsche Bank, Milan, Italy for encashment
of advance bank guarantee. Augusta Westland obtained an interim stay from the
Ordinary Tribunal of Milan, Italy. Government of India
initiated legal proceeded against Augusta Westland in Milan , Italy
(Please
refer to reply dated 05.02.2014 to Parliament Question No. 1579)
Reference
may also be made to PIB press release dated 18.03.2014 issued by
Ministry of Defence qua filing of an appeal in Italian court by
Government of India for encashment of bank guarantee
14. 23.05.2014
Government
of India won the case on 23.05.2014 for encashment of bank guarantee worth
Euro 2,28,00,00,00 (228 million) in the court at Italy.
(Please refer to PIB press release dated 25.05.2014 of
Ministry of Defence- http://pib.nic.in/newsite/PrintRelease.aspx?relid=105151
A copy of the news report of Business Standard specifically mentioning the amount of Euro 228 million
corroborates the same)
15. 26.05.2016
Shri
Narendra Modi was sworn in as Prime Minister.
Now let us look at what action did Congress led UPA took in the case
CONCRETE ACTION TAKEN BY UPA IN
AUGUSTA CASE.
1. UPA
government ensured complete transparency, accountability and integrity of the
process of global tendering leading to award of contract for 12 AW-101 VVIP
helicopters to Augusta Westland.
Contract with Augusta Westland categorically envisaged as
follows:-
(i) It
included specific contractual provisions against ‘bribery’ and use of ‘undue
influence’. Article 22 of the Contract dealt with penalty for use of ‘undue
influence’. Article 23 of the Contract contained a complete prohibition
on the seller regarding dealings through an agent or payment of any agency
commission to any individual or firm.
(ii) In
addition to the above provision, Augusta Westland had also signed ‘Integrity
Pact’ with the Government of India. Under the ‘Integrity Pact’, bidder
committed itself to take all measures necessary to prevent corrupt practices,
unfair means and illegal activities during any stage of the bid or during any
pre or post contract stage. Any breach thereof would result in forfeiture of
earnest money, performance bond, cancellation of contract etc.
(Please
see para-18 of PIB press release dated 14.02.2013 of Ministry of
Defence http://pib.nic.in/newsite/PrintRelease.aspx?relid=92237 )
2. UPA
government asked for an investigation into allegations of corruption by CBI,
Enforcement Directorate (ED) and Income Tax. UPA government also made a request
to Naples (Italy
On 19.04.2012, Ministry of Defence wrote to CBI
and Enforcement Directorate (ED) for examining the allegations of
corruption.
In July 2012, Enforcement Directorate (ED)
informed Ministry of Defence that it was enquiring into the allegations.
In January 2013, Ministry of Defence also conveyed
the facts of the case to the then Director, Income Tax (Investigation).
(Please
see paras-31 and 32 of PIB press release dated 14.02.2013 of
Ministry of Defence http://pib.nic.in/newsite/PrintRelease.aspx?relid=92237 )
On 16.07.2012, Indian Embassy in Italy made a
formal request to Naples (Italy) Prosecutor’s Office for information on
unethical dealings in Augusta Westland sale of helicopters to Indian Air Force.
(Please see PIB press release dated 12.12.2012
and 14.02.2013 (para-26) of Ministry of Defence http://pib.nic.in/newsite/PrintRelease.aspx?relid=92237 )
3. UPA directed
registration of CBI case.
As news came with regard to arrest of
Mr. G. Orsi, CEO of Finmecanica/Augusta Westland; Defence Ministry asked CBI to
register a case on 12.02.2013 against six companies. On 25.02.2013,
CBI registered a preliminary enquiry.
(Please refer to reply dated 06.03.2013
to Parliament Question No. 961 as also reply dated 11.12.2013 to Parliament
Question No.669)
4. UPA
government issued a Show Cause Notice dated 15.02.2013 and cancelled the
contract with Augusta Westland on 01.01.2014.
In
March 2013 itself, UPA also decided that no contract negotiation was to be
held with Augusta Westland in any capital procurement case.
(Please
refer to reply dated 11.03.2013 to Parliament Question No. 2259)
5. UPA
government sent ‘Letter Rogatory’ to various countries including Mauritius , Tunisia
and Italy in July, 2013 and
December, 2013 after receipt of first set of papers from Italy
(Please
refer to reply dated 08.05.2013 to Parliament Question No. 4540
and reply dated 19.08.2013 to Parliament Question No. 1977, Issuance
of ‘Letter Rogatory’ in July and December, 2013 has also been admitted by GoI
in their PIB press release dated 29.04.2016)
6. UPA
government had even proposed to set up a JPC to examine Augusta Westland case
by moving a motion in Rajya Sabha on 27.02.2013. BJP refused the offer by
demanding a Supreme Court-monitored investigation.
7. UPA government encashed the two Indian bank guarantees amounting to Rs.240 crore approximately
at the time of termination of contract.
(Please
refer to reply dated 05.02.2014 to Parliament Question No.1579)
UPA
government also demanded encashment of bank guarantee from Deutsche Bank,
Milan, Italy and finally won the appeal in Italian court on 23.05.2014 for
encashment of bank guarantee worth Euro 2,28,00,00,00 (228 million).
UPA government, thus, recovered
nearly Rs.2,068 crore from Augusta Westland (Rs.240 crore bank guarantee with
Indian banks + Euro 228 million from Deutsche Bank, Milan , Italy
(Please see reply dated 16.12.2014
to Parliament Question No. 2559)
(B) DID
UPA GOVERNMENT CHANGE THE OPERATIONAL REQUIREMENTS (ORs) FOR HELICOPTERS BY
REDUCING IT TO 4,500 METRES FROM THE ORIGINAL 6,000 METRES?
1. Please see
para-1(i) to (v) of Statement of Facts.
2. On
19.11.2003, Principal Secretary to the then Prime Minister, Shri Atal Behari
Vajpayee took a meeting. In the meeting, it was decided to keep the ‘Operational
Requirements’ (ORs) at an altitude of 4,500 metres against original 6,000
metres.
Principal
Secretary to the then Prime Minister - Shri Atal Behari Vajpayee also wrote
a letter dated 22.12.2003 to the Air Chief pointing out that PMO and SPG
should have been consulted while framing ‘Operational Requirements’ (ORs)
besides suggesting that Chief of Air Staff and Defence Secretary should review
and draw up realistic mandatory requirements.
Between
March, 2015 and September, 2016; ‘Operational Requirements’ (ORs) for VVIP
helicopters were deliberated at length between IAF, NSA, SPG, PMO and Ministry
of Defence. Consequently, an operational altitude ceiling of 4,500 metres
and other configurations were arrived at.
(Please
see paras-1 to 6 of PIB press release dated 14.02.2013 of Defence
Ministry http://pib.nic.in/newsite/PrintRelease.aspx?relid=92237 )
(C) WHY
WERE ‘FIELD EVALUATION TRIALS’ (FET) OF HELICOPTERS HELD ABROAD? DID IT VIOLATE
THE ‘DEFENCE PROCUREMENT PROCEDURE’ (DPP)?
1. Field trials for
Augusta Westland helicopters were held in UK
and for Sikorsky helicopters were held in USA
2. During last NDA
government (1999-2004), ‘Defence Procurement Procedure - 2002’ envisaged
field evaluation trials ‘abroad’. (Please refer to para-27 of DPP – 2002
‘Defence Procurement
Procedure, 2006’
applicable to Augusta Westland contract also envisaged trials to be conducted ‘abroad’
in vendor’s premises. (Please refer to para-38 of DPP-2006)
Even during the current Modi government, ‘Defence
Procurement Procedure, 2016’ envisages conduct of field evaluation trials ‘abroad’
in vendor’s premises. (Paras-65 and 66 of DPP -2016)
It is, thus, clear that there is no bar to conduct field
evaluation trials ‘abroad’ either in the previous NDA government or the
Congress government or the current Modi government.
Now let us see what the Modi Sarkar did in the last two years
HOW DID MODI SARKAR PROTECT AUGUSTA WESTLAND?
1. Investigation
by CBI/ED/Income Tax has not been concluded in two years of Modi government
establishing laxity and an intent to help Augusta Westland surruptitiously.
In fact, conclusion of CBI investigation
appears to be nowhere close. This is clear from a recent Parliament reply dated
04.03.2016 to Question No. 1359 given by Defence Minister, Shri Manohar
Parrikar, wherein he has clearly admitted that, “Finalisation of investigation
by CBI is dependant upon execution report of the pending letter rogatory from
eight different countries”.
2. Modi
government undid the process of banning Augusta Westland within a short span of
48 days for completely unexplainable reasons.
On 10.02.2014, UPA government
initiated the process for banning/ blacklisting Augusta Westland.
On 03.07.2014, process got completed
and Modi government proceeded to ban Augusta Westland, its parent company –
Finmecanica and other group companies.
Immediately thereafter, Modi
government took opinion of Attorney General of India. On 22.08.2014, Modi government
proceeded to undo its own order by permitting Finmecanica/Augusta Westland and
their group companies to participate in defence contracts as (a)
sub-contractor; and (b) supplier to the contracting party. A copy of the order
dated 22.08.2014
3. Modi
government has not blacklisted Augusta Westland or its group companies. Order
dated 03.07.2014 only imposes a ban on Augusta Westland and group companies
during the pendency of ongoing CBI investigation dated 25.02.2013.
This
is apparent from Parliament reply dated 18.07.2014 to Question No. 1417 given
by the then Minister for Defence, Shri Arun Jaitley
What
is important to note is that Parliament do not reply dated 18.07.2014 clearly
establishes that is Augusta Westland or its group companies debarred nor have
they been suspended indefinitely.
4. BJP
President, Shri Amit Shah described Augusta Westland a ‘bogus company’. Modi
government granted Foreign Investment Promotion Board (FIPB) approval on
08.10.2015 to the same company i.e. Augusta Westland.
What
is the reason for granting FIPB approval for joint venture to a tainted company
like Augusta Westland, which is under CBI scanner on charges of bribery? This
fact has not been explained till today.
5. Modi
government has also permitted Augusta Westland to be part of ‘Make-in-India’
programme and participate in ‘Aero India
(Please see
PIB press release dated 03.03.2015)
Modi government needs to explain the
reasons for its benevolence towards Augusta Westland and acting as its
benefactor.
Comments
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Rest is meaningless.
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