Publication: Business Day Date: 2005-10-05 Reporter: Sapa Reporter: Khulu Phasiwe

India 'May Reopen Tender if Denel Graft Charge is Proven'

 

Publication 

Business Day

Date

2005-10-05

Reporter

Khulu Phasiwe, Sapa

Web Link

www.bday.co.za

 

The Indian defence ministry could reopen the tendering process for the acquisition of high-calibre antimaterial rifles if allegations that SA’s arms manufacturer Denel paid bribes to win the contract were found to be true, Indian newspapers reported yesterday.

The talks were suspended after a five-month investigation by the Indian authorities into the allegations.

The contract, estimated at R24m, was for the supply of 400 anti-matériel rifles — large sniper rifles for damaging or destroying highly valuable equipment such as radar installations, parked aircraft and communications equipment.

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

The Indian newspaper The Telegraph yesterday quoted the country’s newly appointed army vice-chief of staff Lt Gen S Pattabhiraman as saying that his government may call for fresh bids if it was found that Denel had contravened laws by having used agents and paid bribes to secure the contract.

Pattabhiraman said the army needed the rifles to “upgun its artillery firepower”. But it was up to the government to decide whether the tendering process would be reopened and whether Denel would be allowed to bid again, he said.

Other short-listed bidders, according to India’s The Financial Express newspaper, were Soltam of Israel, Sweden’s SWS Defence and Kerametal of Slovenia.

The Indian military attaché to SA, Samir Advani, yesterday refuted reports that his government had cancelled all arms contracts entered into with Denel. He said negotiations with Denel were merely suspended pending an investigation into the allegations.

But Indian defence journal SP’s Land Forces has defended the accuracy of its report that the defence ministry had initiated action to cancel all contracts with Denel.

The journal said yesterday the information was from a written answer by Indian Defence Minister Shri Pranab Mukherjee to a question asked in parliament.

With acknowledgements to Khulu Phasiwe, Sapa and the Business Day.