Publication	Sapa ARMS-INDIA
Date	2005-10-04
Issued	Johannesburg
Reporter	Sapa

Indian defence journal SP's Land Forces has defended the accuracy of a report that the country's defence ministry has initiated action to cancel all contracts with Denel.

The state arms maker has furiously denied the report and the Indian High Commission in Pretoria has indicated they may just have been suspended.

Denel initially refused to comment on the claims in the report, citing "commercial confidentiality".

It has since denied breaching Indian law.

The Star reported Deputy Indian high commissioner Banashri Harrison as saying it was not yet clear if the contracts had been cancelled.

She confirmed that her government had earlier suspended all business with Denel pending the outcome of its investigation of the allegations against Denel.

Captain Samir Advani, military attaché at the Indian High Commission in Pretoria, said the AMR contract had been suspended while the Indian military investigated allegations that Denel failed to inform it that it had employed an agent to help secure the contract."

On Tuesday Advani told SAFM there was no truth to the report.

But Land Forces' managing editor and publisher, Jayant Baranwal, said the information was drawn from a written answer by Indian defence minister Shri Pranab Mukherjee to a question asked in their parliament, the Lok Sabha.

Mukherjee answer, posted on the Indian ministry of defence's website on July 28 read:

"Based on the information furnished by M/s Denel, South Africa, there is prima facie evidence of violation of clauses relating to use of undue influence and agents/agency commission, as contained in the contracts of Anti-Material Rifles (AMR) signed in 2002. A decision has been taken to initiate action to cancel all contracts entered into with M/s Denel. The contract signed on March 07, 2005 for procurement of 400 AMR has been cancelled *1..."

SP's Land Forces is one of a number of journals published by the SP Guide Publications, a New Delhi-based media group.

Its contributors include a recently retired Indian Army chief and at least six other retired generals and air marshals as well as wellknown South African defence commentator Helmoed-Romer Heitman.

Denel's AMR is essentially a large sniper rifle optimised for damaging or destroying high value equipment such as radar installations, parked aircraft and communications equipment.

During peace support operations it can also be used to counter sporadic and indiscriminate mortar, rocket and sniper fire.

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*1  Seems clear enough.