Alarm in government as whistleblower sends classified documents

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Airbus is learnt to have informed the Director General (Acquisition) of the defence ministry earlier this week that its investigations did not reveal any wrongdoing or corruption involving government officials, but had brought out that certain classified documents had been leaked.


NEW DELHI: There has been considerable alarm in the government after it received classified documents pertaining to recent defence contracts along with an anonymous letter to top functionaries alleging corruption and fixing in a Rs. 2,000-crore Airbus deal to sell helicopters to the Indian Coast Guard.

While the norm is to ignore unsigned complaints, the detailed letter on the deal for 14 twin-engine heavy helicopters was taken seriously after it was found that several classified government documents were also attached, pointing to a leak.

The Airbus Group, against whom the allegations have been made, has informed the defence ministry that it conducted an inquiry into malpractices following a complaint by an internal whistleblower and will share the details on the possible origin and timing of the leak, sources aware of the matter said. Airbus has requested the government not to take any action until the internal probe is completed.

The internal investigation by Airbus into allegations of malpractices raised by an employee is also believed to have been the reason for cancellation of the coast guard chopper deal that was to have been signed during French President Emmanuel Macron’s visit in March.

While India was keen to go ahead with the deal for the EC 725 Super Cougar’ copters, Airbus did not extend the validity of its commercial bid in February, leading to a technical lapse in the procurement process. It is now learnt that the bid was not extended due to the internal probe by the European company. However, fresh efforts to revive the bid are said to be under way.

ET sent a detailed questionnaire to Airbus for reactions but a response is not yet available.

As far as the internal whistleblower within Airbus is concerned, ET has learnt that the executive looked after offset partnerships in India and communicated regularly with top Indian government officials. The executive is currently on leave as investigations are being carried out.

“You can contact Airbus directly. I cannot speak on this matter,” the executive said when contacted by ET. The anonymous letter received by the defence ministry alleged that benchmarking norms were changed and spare engine price calculations were hidden to favour Airbus and named three top coast guard officers as beneficiaries. It alleged that fugitive arms dealer Sanjay Bhandari and former business consultant Deepak Talwar, both of whom left the country after cases were registered against them by investigating agencies, acted as agents for Airbus.

A retired naval officer hired by Airbus for technical consultation is alleged to be the main middleman. Airbus has since terminated the services of the retired officer.

Some of the appended documents are said to have been established as genuine raising concern over the source of the leak. Further course of formal action on the matter is being decided. The defence ministry has not yet responded to a questionnaire sent by ET.

Though the allegations may not be of substantive nature, the defence ministry ordered the issue to be examined internally on December 19, possibly due to the presence of the attached documents related to offset compliance and selection for defence contracts. Offsets are contractual obligations to invest a certain portion in the purchasing country’s indigenous industry.

Airbus is learnt to have informed the Director General (Acquisition) of the defence ministry earlier this week that its investigations did not reveal any wrongdoing or corruption involving government officials, but had brought out that certain classified documents had been leaked.

Government officers are especially wary of complaints and allegations regarding offsets, given that this route has become notorious for channeling of alleged bribes into India. At least three major cases have come under the scanner of investigating agencies and audit bodies — the Agusta Westland VVIP chopper deal, Offsets India Solutions promoted by Bhandari, and Italian shipbuilder Fincantieri.

Source: https://m.economictimes.com/news/de...leshow/64117305.cms?__twitter_impression=true