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Barak missile investigation holds back Indian Navy procurement
Rahul Bedi JDW Correspondent-New Delhi
Key Points
A former Indian naval officer has been arrested as part of an investigation surrounding the purchase of Israeli Barak-1 missiles
The Indian Navy chief has warned that the investigation is preventing the service from procuring further equipment
Corruption allegations surrounding the Indian Navy's (IN's) purchase of 11 Israeli Barak-1 naval air defence missile systems are threatening the procurement of additional systems, IN chief Admiral Sureesh Mehta has said.
"We need to buy some more [Israeli systems] in the normal course of procurement and that is being held up at this point in time," Adm Mehta said on 10 March on the sidelines of an official function in New Delhi.
His comments followed the 8 March arrest by the Indian Central Bureau of Investigation (CBI) of former naval officer Suresh Nanda for allegedly receiving INR4 million (USD100,000) in kickbacks for facilitating the Barak-1 systems purchase from Israel Aircraft Industries (IAI)/Rafael in 2000.
Since 2000 the IN had confirmed orders for 11 Barak-1 systems, including around 250 missiles, for USD100 million.
The current Congress Party-led government launched investigations into at least 40 military deals concluded under the previous Hindu nationalist administration, including the Barak-1 contract, after it came to power in 2004
In its charge sheet filed in October 2006, the CBI alleged that former defence minister George Fernandes and retired IN chief Adm Sushil Kumar were influenced by middlemen to push the Barak-1 missile deal despite objections from the Defence Research and Development Organisation (DRDO).
On 4 March the CBI questioned Kumar, who retired in December 2001, and it expects to interrogate Fernandes soon, officials said.
Both Kumar and Fernandes have strongly refuted the CBI's allegations, claiming that as an alternative to the Barak-1 the DRDO was offering its own Trishul missile, which even now has not entered service.
In terms of buying more Barak-1s, Adm Mehta said: "We are trying to figure out what is the status of the [Israeli] company. The government will take a view on that and once that is taken we can proceed one way or the other."
He added that the IN was "very happy" with the Barak-1 system, which has performed well in tests.
The CBI inquiry has also jeopardised other IAI/Rafael acquisitions, such as the Spyder-SR low-level quick reaction missile systems sought by the Indian Air Force (IAF) to augment its air defence systems.
However, the CBI investigation did not deter the DRDO from signing a USD330 million collaborative agreement with IAI in January 2006 to develop the Barak-2: a next-generation naval air defence missile system with a range of 70 km to 80 km.
A three-star officer told Jane's that senior military personnel are now "fearful of future repercussions" and that "few in the MoD or the services will now dare take decisions on defence purchases. No one wants to be pursued by investigating agencies long after they retire," he said.
Rahul Bedi JDW Correspondent-New Delhi
Key Points
A former Indian naval officer has been arrested as part of an investigation surrounding the purchase of Israeli Barak-1 missiles
The Indian Navy chief has warned that the investigation is preventing the service from procuring further equipment
Corruption allegations surrounding the Indian Navy's (IN's) purchase of 11 Israeli Barak-1 naval air defence missile systems are threatening the procurement of additional systems, IN chief Admiral Sureesh Mehta has said.
"We need to buy some more [Israeli systems] in the normal course of procurement and that is being held up at this point in time," Adm Mehta said on 10 March on the sidelines of an official function in New Delhi.
His comments followed the 8 March arrest by the Indian Central Bureau of Investigation (CBI) of former naval officer Suresh Nanda for allegedly receiving INR4 million (USD100,000) in kickbacks for facilitating the Barak-1 systems purchase from Israel Aircraft Industries (IAI)/Rafael in 2000.
Since 2000 the IN had confirmed orders for 11 Barak-1 systems, including around 250 missiles, for USD100 million.
The current Congress Party-led government launched investigations into at least 40 military deals concluded under the previous Hindu nationalist administration, including the Barak-1 contract, after it came to power in 2004
In its charge sheet filed in October 2006, the CBI alleged that former defence minister George Fernandes and retired IN chief Adm Sushil Kumar were influenced by middlemen to push the Barak-1 missile deal despite objections from the Defence Research and Development Organisation (DRDO).
On 4 March the CBI questioned Kumar, who retired in December 2001, and it expects to interrogate Fernandes soon, officials said.
Both Kumar and Fernandes have strongly refuted the CBI's allegations, claiming that as an alternative to the Barak-1 the DRDO was offering its own Trishul missile, which even now has not entered service.
In terms of buying more Barak-1s, Adm Mehta said: "We are trying to figure out what is the status of the [Israeli] company. The government will take a view on that and once that is taken we can proceed one way or the other."
He added that the IN was "very happy" with the Barak-1 system, which has performed well in tests.
The CBI inquiry has also jeopardised other IAI/Rafael acquisitions, such as the Spyder-SR low-level quick reaction missile systems sought by the Indian Air Force (IAF) to augment its air defence systems.
However, the CBI investigation did not deter the DRDO from signing a USD330 million collaborative agreement with IAI in January 2006 to develop the Barak-2: a next-generation naval air defence missile system with a range of 70 km to 80 km.
A three-star officer told Jane's that senior military personnel are now "fearful of future repercussions" and that "few in the MoD or the services will now dare take decisions on defence purchases. No one wants to be pursued by investigating agencies long after they retire," he said.
