Bang Galore
ELITE MEMBER
- Joined
- Feb 21, 2010
- Messages
- 10,685
- Reaction score
- 12
- Country
- Location
You don't need companies, you need capability and more importantly you need the right capability at a fair price and on terms that benefit your nation. If banning is not the answer then how will India deter corruption in military deals?
The answer is severe company breaking financial penalties coupled with immediate dismissal of indians involved in this.
This is actually what the Chandra panel on national security recommended.
Do not blacklist, penalise erring armament firms: Naresh Chandra
NEW DELHI: The government should slap heavy penalties on firms found guilty of irregularities in defence deals rather than immediately blacklisting them, said former Cabinet secretary Naresh Chandra, who headed a 14-member task force on national security.
A graded and pragmatic approach is advisable in such situations, said Chandra, who led the task force appointed by the government that submitted its report to the prime minister last May.
"You should make your displeasure known in plain words and claim maximum damages from the company," Chandra told ET, adding, "The focus should be on the guilty employees of the company rather than banning the entire company. What is important to remember is that there are alternatives to blacklisting."
While a heavy fine or penalty should suffice in the first instance of irregularity, the government should resort to blacklisting only in extreme cases where the company proves to be a habitual offender, he said. Chandra's comments come in the wake of defence minister AK Antony's statement last week that the government would blacklist AgustaWestland if irregularities were found in its deal for 12 helicopters with India.
Antony had cited the example of the defence ministry last year blacklisting for a decade six defence firms, including major foreign suppliers such as Singapore Technologies, Israeli Military Industry, Germany's Rheinmetall Air Defence and Corporation Defence of Russia.
There appears to a difference of opinion within the government, though, over cancelling the chopper deal, with foreign minister Salman Khurshid saying that several experts have vouched for the quality of the choppers and that any such decision should be wellthought-out.
"There cannot be a fixed formula for all cases where defence deals come under a cloud of suspicion," said Chandra, "We should factor in whether it will take a long time to re-purchase, whether it will affect procurements in the long run and whether there are multiple competitors in the market who can offer you the same product."
Blacklisting may lead to a situation where just a single or no vendor is left in the market, Chandra said. "Blacklisting a company should be retained as an option, but practised in extreme cases of repeat offenders," he said.
The task force headed by Chandra is believed to have recommended as much in its report, after blacklisting of defence firms severely limited the armed forces' options of procuring modern weapon systems.
The report is said to have suggested blacklisting as only the last resort and prescribed guidelines detailing a structured process to deal with tainted defence firms, including levy of fines. Chandra did not comment on the contents of the report, saying that it was still under the government's consideration.
The task force, set up in July 2011 to review the working of the national security system, included retired government servants, former armed forces officers and national security experts. It was mandated to review the existing processes, procedures and practices in the national security system and to suggest measures to strengthen the national security apparatus.
Do not blacklist, penalise erring armament firms: Naresh Chandra - Economic Times