Brazilian aircraft manufacturer Embraer's deal with DRDO under bribery cloud

[CorporateAffairs]

Awesome ! Anti National Congress rocks!

 

[Param]

It is a fact that almost all defence deals done till date,were subjected to some kind of corruption.
Too much reaction will make the politicians and bureaucracy hesitant to take decision.

India is preparing a blacklisting policy.I hope they have a clear policy to penalise financially such companies,bar them from future bidding for limited time.It is also necessary to penalise individuals responsible for such action.In India,whistle blower's policy to be promoted.

Blanket banning for indefinite time is not beneficial for advancement of our defence preparedness.

 

[VivasvatManu]

Don't anybody find it strange that US is Investigating a Brazilian company for bribes while selling the aircraft's to Saudi Arabia and India ?


Classic Economic warfare by US. Boeing must be cheering from the sidelines.

 

[migflug]

Embraer sets aside $200 million for possible fines as India seeks details of bribes on deal
By IANS | Sep 10, 2016, 09.45 PM IST
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NEW DELHI/SAO PAULO: Even as the Defence Ministry in India sought information from Brazil's Embraer aerospace company over alleged payment of bribes in a three-aircraft deal, the company is said to have set aside $200 million to pay for any fine following investigation by US authorities.

According to media reports in Sao Paulo, Embraer is being probed by prosecutors in Brazil and the US Justice Department over commissions allegedly paid to a UK-based defence agent for clinching the 2008 deal.

In Delhi, the principal spokesperson of the Defence Ministry tweeted: "DRDO (Defence Research and Development Organisation) to seek explanation and details from manufacturers of Embraer aircraft on media reports on deal for the aircraft signed in 2008,"

"On receipt of information by DRDO further steps may be initiated," the spokesperson said in another tweet.

The deal, inked by the United Progressive Alliance (UPA) government, involved the purchase of three EMB-145 planes for $208 million. The first aircraft was delivered in 2011, and the other two were delivered later.

The DRDO is fabricating the indigenous AEW&C (Airborne Early Warning and Control)systems that are being mounted on the Embraers, which the Indian Air Force (IAF) will operate. The system is still not ready as the DRDO has missed several deadlines. It is now scheduled to be completed by December.

The DRDO has said it is not aware of any commissions being paid for the deal.


According to Brazilian daily Folha de S.Paulo report, Embraer is cooperating with the investigations and announced in July that it was expecting to reach a deal soon with American authorities. The report said $200 million had been set aside by the company to pay for any eventual fines.

"The company has not released details regarding the state of the investigations, but three people who have been following the case have confirmed to Folha that the deals concluded in Saudi Arabia and India are being examined," said the report.

"In both cases, suspicions were underlined in May of this year when an employee with more than 30 years at the company reached a plea-bargain agreement in investigations being conducted by the Federal Public Prosecutor's Office here in Brazil," it added.

The news report in Brazil also said that Albert Phillip Close, Manager of Embraer's defence section, told Prosecutor Marcello Miller that he had heard a former sales director who worked in Europe admit to American investigators the payment of commissions to facilitate the sale of aircraft to the Saudis.

According to the Brazilian daily, in India's case, the plea bargainer said that Embraer had contracted a representative to assist in the sale of a surveillance system to the government.

This is the second major allegation of graft in a defence deal signed during the UPA regime. A few months ago, there were allegations of commissions and middlemen in what has come to be known as the VVIP chopper scam.

Responding to queries, BJP spokesperson Shahnawaz Hussain said: "Whatever corruption happened during 10 years of the UPA government, we are acting firmly on it and will continue to do so."

Read more at:
http://economictimes.indiatimes.com...ofinterest&utm_medium=text&utm_campaign=cppst

 

[wiseone2]

NEW DELHI: Another big defence corruption probe is set to hit India. This time it's a joint US Brazil investigation into bribery charges against Brazilian aircraft manufacturer Embraer that has now been expanded to include the sales made to India.

While Embraer has also sold VVIP executive jets to the Indian Air Force, the deal likely to come under probe is a $210-million contract inked in 2008 with the Defence Research and Development Organisation (DRDO) for a project to develop a new range of early warning and control aircraft.

Authorities in the US and Brazil are probing charges that the company hired a middleman based out of England to bag the deal, a practice prohibited by Indian military procurement laws.

Besides the Indian deal, the company's contracts in Saudi Arabia are also being probed, Brazilian newspaper Folha de SaoPaulo reportedon Friday.

The probe, which began in theUS under the Foreign Corrupt Practices Act (FCPA) in 2010, has already led to the arrest of the defence minister of the Dominican Republic last month on bribery charges in a military deal with Embrarer.
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This was a result of investigation launched on the basis of the information US Department of Justice shared with Brazilian authorities.

Embraer, which has not denied the charges, told ET that it is cooperating with authorities on alleged violations, and confirmed that it has expanded an internal investigation.

"The company voluntarily expanded the scope of the investigation, systematically reporting the progress of the case to the market," an Embraer spokesperson told ET.


Read more at:
http://economictimes.indiatimes.com...ofinterest&utm_medium=text&utm_campaign=cppst

it is time they started trying military corruption in military courts

Don't anybody find it strange that US is Investigating a Brazilian company for bribes while selling the aircraft's to Saudi Arabia and India ?


Classic Economic warfare by US. Boeing must be cheering from the sidelines.

American corporations and citizens are under strict legal rules on bribery. at least you cannot overtly pay bribes. European companies are under looser rules

 

[AMCA]

Now I was kinda worried no negative sentiments arised for this particular project. Much Releived..

 

[ejaz007]

India Begins Corruption Investigation Against Embraer of Brazil
By: Vivek Raghuvanshi, September 15, 2016 (Photo Credit: Embraer)

NEW DELHI — The Indian government has asked the national anti-fraud agency, the Central Bureau of Investigation (CBI), to probe corruption charges against Embraer of Brazil surrounding the purchase of three EMB-145 aircraft from the company in 2008 by state-owned Defence Research and Development Organization (DRDO) for its indigenous airborne early warning and control systems (AEW&C) program, according to a senior Ministry of Defence (MoD) official.

"The government will also use diplomatic channel to ask the US and Brazilian authorities on the matter," the official said, who spoke on condition of anonymity.

Embraer has been under investigation by the US Justice Department since 2010 after a defense contract with the Dominican Republic raised suspicions of kickbacks. The US investigation has extended to examine Embraer's business dealings with eight more countries, including Saudi Arabia and India.

Brazilian newspaper Folha de Sao Paulo last week reported that the possibility of bribery in the 2008 Indian deal was on the US Justice Department's radar.

Embraer executives were unavailable for comment.

India's DRDO purchased three EMB-145 aircraft from Embraer in 2008 for $210 million for the homegrown AEW&C program to be used by the Indian Air Force (IAF).

"Referring the case to CBI will not produce immediate results, as the agency has taken several years to probe defense deals and at best it could only mean further delays in the homegrown AEW&C program for which the aircraft were bought," a senior IAF official said.

While a DRDO official claimed that the homegrown AEW&C program based on the Embraer platform is under progress and that one of the three systems will be delivered by year's end, the IAF official skeptical about the timeline. "The Integration of the radar, communications and control equipment is the main challenge," the IAF official said.

The DRDO official refused to comment on the kickback charges.

The Indian government had approved the AEW&C program in 2004 at a cost of $450 million and three aircraft EMB-145 were bought from Embraer in 2008. The first two customized aircraft were to be delivered in 2012. The aircraft are to be fitted with indigenous radars, communication and surveillance systems.

Email: vraghuvanshi@defensenews.com

http://www.defensenews.com/articles/india-begins-corruption-investigation-against-embraer-of-brazil

 

[GuardianRED]

India Begins Corruption Investigation Against Embraer of Brazil
By: Vivek Raghuvanshi, September 15, 2016 (Photo Credit: Embraer)

NEW DELHI — The Indian government has asked the national anti-fraud agency, the Central Bureau of Investigation (CBI), to probe corruption charges against Embraer of Brazil surrounding the purchase of three EMB-145 aircraft from the company in 2008 by state-owned Defence Research and Development Organization (DRDO) for its indigenous airborne early warning and control systems (AEW&C) program, according to a senior Ministry of Defence (MoD) official.

"The government will also use diplomatic channel to ask the US and Brazilian authorities on the matter," the official said, who spoke on condition of anonymity.

Embraer has been under investigation by the US Justice Department since 2010 after a defense contract with the Dominican Republic raised suspicions of kickbacks. The US investigation has extended to examine Embraer's business dealings with eight more countries, including Saudi Arabia and India.

Brazilian newspaper Folha de Sao Paulo last week reported that the possibility of bribery in the 2008 Indian deal was on the US Justice Department's radar.

Embraer executives were unavailable for comment.

India's DRDO purchased three EMB-145 aircraft from Embraer in 2008 for $210 million for the homegrown AEW&C program to be used by the Indian Air Force (IAF).

"Referring the case to CBI will not produce immediate results, as the agency has taken several years to probe defense deals and at best it could only mean further delays in the homegrown AEW&C program for which the aircraft were bought," a senior IAF official said.

While a DRDO official claimed that the homegrown AEW&C program based on the Embraer platform is under progress and that one of the three systems will be delivered by year's end, the IAF official skeptical about the timeline. "The Integration of the radar, communications and control equipment is the main challenge," the IAF official said.

The DRDO official refused to comment on the kickback charges.

The Indian government had approved the AEW&C program in 2004 at a cost of $450 million and three aircraft EMB-145 were bought from Embraer in 2008. The first two customized aircraft were to be delivered in 2012. The aircraft are to be fitted with indigenous radars, communication and surveillance systems.

Email: vraghuvanshi@defensenews.com

http://www.defensenews.com/articles/india-begins-corruption-investigation-against-embraer-of-brazil

This Article is so misleading, the journalist has absolute no clue at all.

He has written The first two customized aircraft were to be delivered in 2012, The aircraft are to be fitted with indigenous radars, communication and surveillance systems."

When the Aircrafts, ARE ALREADY FITTED AND DELIVERED!! Handing over to the IAF is stated to be THIS year!. The Third Aircraft will be delivered end of this year!. The contract IS ONLY for the Fitment and frames and Nothing to do with the AEW&C program itself and is so stupid to say there will be delays , when this contract is at its end. This Journo is an ***