Indian MoD Orders Probe Into Rolls-Royce Aero Engine Deals

[SRP]

The Indian Central Bureau of Investigation (CBI) will shortly begin a detailed investigation into aircraft engine contracts in India. Based on a direct recommendation by the Board of Directors at Hindustan Aeronautics Ltd (HAL), Defence Minister A.K. Antony yesterday ordered the CBI to probe all aero engine deals between 2007-2011. These almost definitely pertain to the supply of Adour Mk.951 turbofan engines for the BAE Hawk license build. It is not clear yet if the investigation could also delve into other engine contracts beyond that stipulated timeframe. Apart from the Hawk, RollsRoyce aero engines currently power the Indian Air Force's Jaguar fighter-bombers and C-130J Super Hercules transports.

Livefist: Indian MoD Orders Probe Into Rolls-Royce Aero Engine Deals

 

[OrionHunter]

 

[Abingdonboy]

9/10 times these probes come up with NOTHING, because there is NOTHING to find. All the happens is that critical defence deals get delayed for months if not years. What we are seeing now is parties with vested interests using the over-cautious Defence Minister's desire to preserve his own image for their own good. Again and again this keeps happening, it's happening too often to simply ignore. Instead of using discretion or judgement, the Def Min stalls and nothing much comes of anything.

This is a disturbing trend that is emerging. It would be one thing if there actually was graft going on and these probes uncovered it but time and again these probes clear all parties and the end result is a needless delay.

 

[janon]

If you were the head of an enemy's military or intelligence, how would you render the entire Indian military toothless without firing a shot? Easy, send an email to the defence ministry and tell them that everything the military has got was through corruption.

That will ensure that in the next war we will fight with sticks and stones, provided those can be procured without any corruption, and more importantly, nobody can allege any corruption in the whole process of testing and selecting sticks and stones, and the subsequent tenders for sharpening them.

 

[Abingdonboy]

If you were the head of an enemy's military or intelligence, how would you render the entire Indian military toothless without firing a shot? Easy, send an email to the defence ministry and tell them that everything the military has got was through corruption.

That will ensure that in the next war we will fight with sticks and stones, provided those can be procured without any corruption, and more importantly, nobody can allege any corruption in the whole process of testing and selecting sticks and stones, and the subsequent tenders for sharpening them.

Precisely! This is a well known loop-hole in India's defence procurement field now and is being exploited by aggrieved bidders who lose and is certainly open to exploitation for others.....


Yes the system is practically graft/corruption free but the pace is unacceptable and recent events have highlighted this.... What is needed is someone with a backbone in the Def Min position. Maybe- just maybe, VKS is the right man for the job.

 

[kurup]

Rolls-Royce used ‘adviser’ to supply turbines to HAL

Bangalore-based Hindustan Aeronautics Limited (HAL) has reported to the defence ministry a letter it received from engine manufacturer Rolls-Royce admitting the use of unauthorised service of an “adviser” while selling Marine gas turbines to India.

The company informed HAL about using the service of another firm to sell these engines between 2007 and 2011.

“HAL received the letter from the company on December 27, 2013, discussed it in the board and referred to the defence ministry following the integrity protocol,” reliable sources in the HAL told Deccan Herald.

The engines are being used by Gas Authority of India Limited. HAL looks after their maintenance. HAL is also part of the procurement programme for these turbines.

Rolls-Royce disclosed the matter to HAL following signing of the integrity pact with HAL, under which the company had to show no violation of contract clause for three years. Use of any third party as an “agent” or “adviser” is prohibited in the defence procurement system. HAL also has an agreement with Transparency International.

“The letter has nothing to do with our military programme. The deal is on the Marine turbines that Rolls-Royce supplies for civilian use,” said HAL sources, denying reports in a section of the media on Sunday that the Bangalore-based aviation major received an anonymous complaint on unfair practices adopted by Rolls-Royce in securing a Rs 10,000-crore contract to supply engines for the Hawk advanced jet-trainer.

Asked about the allegations, a Rolls-Royce spokesperson said the company could only respond on Monday.

On Sunday, a section of the media claimed Defence Minister A K Antony has ordered a probe by the Central Bureau of Investigation into the Rolls-Royce deal. But defence ministry spokesperson Sitangshu Kar said he had no knowledge of the CBI probe.

A CBI official said the agency had not received any such order yet. Also, it has no information whether the defence ministry has issued such an order.

Rolls-Royce used ‘adviser’ to supply turbines to HAL | idrw.org

 

[SpArK]

MoD should ground Jaguar and think about replacement plans, instead of extending life again and again when multirole fighters are expected to rule the roost.

 

[jha]

Good Job.. There should not be a single blot of corruption on defence deals.

 

[spectribution]

Only good thing that fucker is going to be in power for 15 - 20 days. After that VK Singh. Hold steady men.

 

[Rajaraja Chola]

9/10 times these probes come up with NOTHING, because there is NOTHING to find. All the happens is that critical defence deals get delayed for months if not years. What we are seeing now is parties with vested interests using the over-cautious Defence Minister's desire to preserve his own image for their own good. Again and again this keeps happening, it's happening too often to simply ignore. Instead of using discretion or judgement, the Def Min stalls and nothing much comes of anything.

This is a disturbing trend that is emerging. It would be one thing if there actually was graft going on and these probes uncovered it but time and again these probes clear all parties and the end result is a needless delay.

Actually Corruption have become "Institutialized" as mentioned in one of The Hindu Article. Having a clean defence Minister alone do not weed out corruption. Foreign Vendors have realised, Corruption is the way to win. They get some contacts in the military, and then "pay" them to get some technical documents , and later ask them to pitch for their products.
The officers of the armed forces are the one to blame. Remember Someone telling to VK Singh for Tatra Trucks? " If you dont buy it, the next general will buy it" . Its now too deep routed, and will take next generation of officers to stand upto corruption.
Even a military hotel contract is corrupt. And we are talking of Billions.

 

[SRP]

https://twitter.com/x/status/440416551951683584

 

[Archie]

MoD should ground Jaguar and think about replacement plans, instead of extending life again and again when multirole fighters are expected to rule the roost.

As it is Rolls Royce are not getting the Engine replacement contract, thats going to Honeywell

Also the cost of upgrading 120 Jaguars is 1.5 Billion USD( 600 Million Avionic upgrade, 800 Million Engine upgrade, rest for new missiles)
this will keep IAF Jaguar flying till 2030,
if we dont upgrade them, then we will have to retire them in 2022
how will you fill the capability gap
any new fighter procurement is unlikely to happen
the numbers would have to be made up by ordering 63 More Rafales off the shelf,

 

[kurup]

Two Indian Britons behind Singapore firm that ‘advised’ Rolls-Royce

Two British citizens, presumably a husband and wife team of Indian origin, are believed to be the promoters of the Singapore company which is now in the centre of a CBI investigation against Rolls-Royce in India.
The defence ministry had called in the CBI last week to investigate allegations that Rolls-Royce, a global leader in aircraft engines and gas turbines, may have paid middlemen to pocket defence contracts in India. The suspicion rose from Rolls-Royce’s own admission last December in a letter to defence PSU Hindustan Aeronautics Ltd (HAL) that they had hired a consultant Ashok Patni and his Singapore firmAashmore Private Ltd as commercial advisors in India.

Rolls-Royce said Aashmore provided “sales and logistics support, local business expertise and strategic advice” in dealings with HAL in the energy sector. HAL, through its Industrial & Marine Gas Turbine Division, buys and maintains gas turbines for ONGC and GAIL.

The British company, which is under probe in UK for engaging arms dealer Sudhir Choudhrie for paying alleged bribes in China and Indonesia to win contracts, insists it has not engaged any agents in the defence sector in India.

The MOD has refused to buy Rolls-Royce’s claim and has ordered a CBI probe. It has put on hold all new deals with the British firm until the CBI probe is completed.

Rolls-Royce allegedly paid Aashmore hefty 10-11.3% commissions of the value of the contracts it signed with HAL from 2007 to 2011 in the energy sector. While the value of these gas turbine contracts was just around Rs 140 crore, the deals in the defence arena were worth over Rs 7,000 crore in the same timeframe.

Official documents show both Ashok Patni and Aarti Patni are the only shareholders in Aashmore, and hold 100,000 shares each in the company. A third director, Ganti Chandra Shekhar, is a Singpore citizen, while a third Patni family member, Ruchica Patni, is also a director. The company has two more directors—a German citizen and a local Singaporean.

Significantly, Aashmore Private Limited was incorporated in 1992, and has banking relations with Indian Bank as well as HSBC.

Rolls-Royce is facing investigations by the Serious Fraud Office of UK and alleged arms dealer Sudhir Choudhrie and his son were arrested briefly and questioned in London. In the wake of the UK investigation, the Indian government is now seeking, through diplomatic channels, more information on the British investigations. The CBI has in the past closed two of its FIRs in which Choudhrie figured as an alleged middleman in arms deals.

Two Indian Britons behind Singapore firm that ‘advised’ Rolls-Royce | idrw.org

 

[surya kiran]

The Ministry of Defence needs to be renamed the Ministry of Probing and AK Antony is Chief Prober. All they do is probe and figure out who to probe next....if you get my drift.....

 

[kurup]

CBI to start probe in HAL bribery scam

CBI in the next couple of days will register a preliminary enquiry into alleged bribery in a Rs 10,000 crore deal for supply of aircraft engines to state-owned Hindustan Aeronautics Limited by London-based Rolls Royce.

The agency had received a complaint from the Defence Ministry to look into the supply of aircraft engines to HAL and is scrutinising the documents, highly placed sources said.

Defence Minister A K Antony has ordered a CBI probe into the allegations. They said a preliminary enquiry may be initiated by Wednesday on the basis of which a decision could be taken to register the FIRs in the cases. “We will co-operate fully with the regulatory authorities and have repeatedly made clear that we will not tolerate misconduct of any sort,” a Rolls-Royce spokesman has said.

Sources said the role of a London-based arms dealer, who had been probed by the agency in different cases, is also under scanner and if evidence of his role emerges, he might be made an accused in the FIRs.

They said the arms dealer who is already in the list of “undesirable contact” issued by the agency to government officials has been probed in the past but since no evidence had emerged the cases were closed.

The scandal relates to deal in the supply of engines for Hawk trainer and Jaguar fighter aircraft between 2007 and 2011 and an internal probe by the vigilance wing of HAL has prima facie established the charges, the sources said.

The allegations surfaced in the form of a letter received by HAL recently claiming that bribes were paid to officials in HAL and other departments concerned to bag contracts.

CBI to start probe in HAL bribery scam | idrw.org