Antony’s probe love - an acquisition bane?

As Defence Minister, AK Antony cannot be faulted for tolerating action. His record at the helm of affairs in the Ministry of Defence (MoD) reflects his penchant for ordering a probe at a drop of a hat. This year alone he has ordered close to ten inquiries including one in the big-ticket purchase of 126 fighter jets.
 

According to sources in the Defence Ministry, the Minister receives on an average 25 complaints daily alleging corruption and malpractices in the acquisitions going on. “These complaints come from a spectrum of people from firm consultants, vendors, MPs, politicians and so on,” said the MoD official giving a glimpse of the hooks and crooks employed by the defence companies to clinch the defence contracts.

Sources indicate that the number of probes and inquiries ordered by the Minister are much more than in the public domain. “Many of the inquiries do not come into the public domain as they involve big names in the Ministry,” the sources add. This year he ordered a CBI probe against BEML Chief VRS Natarajan after a two year internal inquiry in the ministry prima facie indicated financial irregularities on his part in the purchase and delivery of Tatra trucks to the Indian Army.

The very first probe ordered by the Ministry beginning this year was into the purchase of 12 helicopters for VVIPs from Italian firm Augusta Westland after Italian newspaper reported about Rome authorities conducting inquiry into the deal inked in 2010. The deal for 126 medium multi-role combat aircraft also hit a rough patch when former MP Mysora Reddy wrote a letter to Antony alleging the contract process had unduly favoured the French plane maker. Sources suggest that the report of the probe has already been prepared and awaits Antony’s approval.

The long-winding defence acquisition processes are threatened to be derailed as a disgruntled vendor try to put spoke by writing a complaint. The other deals bearing the brunt of these probes are 197 light utility helicopters and M-777 ultra-light howitzers.

The tender for 197 helicopters was earlier scrapped in 2007 after it reached final stage. Last year a complaint triggered an inquiry and setting up of a Technical Oversights Committee. As developments suggest the deal is again on the verge of cancellation for the second time. The M-777 ultra-light howtizers that would have given the Indian Army’s artillery modernization an initial boost have also got delayed.

The biggest blow to the procurements has been the ban of six defence firms for the next ten years after probe ordered by Antony confirmed wrongdoings. In words of Antony: “When I got complaints regarding certain procurements, which were at final stage, I made quiet inquiries and I was found something was wrong somewhere, I went to the extent of cancelling a major contract of helicopter deals and so many other deals which were at the final stage.”

Replying to this, BJP Leader Arun Jaitley said : “We are completely with you if you want to cleanse up. But, please, maintain a judicious balance, and that judicious balance is that defence procurement, modernization and defence preparedness should not suffer…. You need to have a judicious balance to be struck that whereas we must stand by probity, at the same time, we cannot leave India insecure if we get over-obsessed with that issue.”