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What Is India News Service
Wednesday, April 26, 2006

India Intelligence Report

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Denel Paid Middlemen

 

The Central Bureau of Investigation (CBI) said that it has determined that South African Anti-Material Rifle vendor Denel paid a 12.75% commission to a Varas Associates for procurement of contracts. The CBI says that they had worked with South Africa, United Kingdom, and Honk Kong to find out that there were money transfers between the two entities besides the one mentioned in the first information report (FIR).

The Varas Associated, probably a front organization for some politician, is based out of Isle of Man (UK) known for its secretive tax-holiday policies. The deal was completed during the National Democratic Alliance (NDA) term with George Fernandes as the Defense Minister.

 

Paying commission or brokerage by defense vendors is banned by India. Ever since the Bofors scam, India went into a defense-spending freeze. Following the near-bankruptcy situation created by incompetent Prime Ministers V.P. Singh and Chandrasekhar, the country took a long time to come out of its defense hibernation. It was shaken out of its slumber by the invasion at Kargil by Pakistan and ever since, the country has been on a defense-spending spree trying to compensate for the lost 15 years.

Recently, the NDA alleged corruption in the French Scorpene deal  and some say this is a tit-for-tat allegation from the Government. The CBI has an unenviable record of 0 conviction or conclusion in any of its cases. The common joke is if someone wants to get away from his crime, he should insist on the CBI assuming the case. 

Unfortunately, this is not because of the ineptness of the investigative agency but the meddling of the process by interested politicians, corrupt police force, and the lack of charter to assume investigative rights in extra-regional areas.

 

 


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