Contrary to its existing policy, the Union government is not considering any action against at least two US defence firms that have admitted to paying bribes in India for securing military contracts.
A senior MoD official said he was “not aware” of any move to blacklist the two US firms — Textron and York International Corporation. Both of them have admitted to the US Department of Justice that they paid bribes to Indian officials, navy officers and other middlemen for securing contracts in India.
The government stand on the two US firms goes against the set practice of acting against defence firms that are allegedly involved in paying commissions to officials and middlemen. India had blacklisted almost a dozen global defence firms, even before a legal process found them guilty.
Earlier this year, defence minister AK Antony had ordered blacklisting of seven firms, including Singapore Technologies and Israel Military Industries, after the CBI found prima facie evidence against them. The CBI is yet to file its charge-sheet, but still the MOD went ahead and blacklisted them.
In the case of South African firm Denel, the blacklisting a few years ago happened on the basis of some newspaper reports and subsequent diplomatic inquiries. Blacklisting results in immediate ceasing of all contracts with them, and the firms are not eligible for bidding in future.
In contrast to such alacrity to fight corruption, this time the government has failed to take any action against the two US firms that have admitted they paid bribes to Indian government officials, naval personnel and middlemen for securing military contracts.
According to investigations by the US department of justice under the Foreign Corrupt Practices Act, the two firms admitted to paying bribes in India. York India, which works with the navy on air-conditioning of ships, appointed, against rules, an agent who made payments to Indian navy officials.
A subsidiary of Textron, a global giant that owns among other things the Bell helicopters and Cessna aircraft, has also admitted to paying bribes to secure military contracts in India. According to the department of justice, $51,870 was paid to a “non-government customer” in India for securing business.
