Parrikar finds 3 billion in forgotten account

[DesiGuy1403]

Its High time this loud mouth time wasting MOD dose some actual work than blabbering , defense deals are not to be done like baniyaas.

I can fill in 10 pages to show the work done by MOD.
BUT
we know the truth about you lot, so, I am not gonna bother correcting or educating you.

So, please carry on...

 

[Brickwall]

3 biilion dollar, that is large amount. The officials who mismanaged needs to be punished, this is not negligence but has smack of corruption.

 

[Raftaar]

Mr.Parrikar is 100 Times better than any Def minister we got in history of India.......

 

[PARIKRAMA]

This is what Prasun K Sengupta explained
Original poster question
"It was for the first time that the defence ministry took stock of military sales through an account held by the US government and found that due to "ill-management of this account, slightly less than $ 3 billion piled up"
Is there an explaination for that?

And then,
"In May-June last year, we reviewed it. We have re calibrated it has come down from about $3 billion to $1.8 billlon," he said.

PSK replied
Regarding FMS, everyone in the media was totally confused because they simply do not know how the FMS system works. Here's how it works:

1. After inking a FMS procurement contract, the buyer immediately makes a wire-transfer via SWIFT of the initial down-payment (20% of contract value) to the US Defense Dept's account in the Federal Reserve Bank of New York.
2. The Defense Dept in turn transfers this money to the US prime industrial contractor that builds the hardware.
3. Under FMS, India cannot make direct payments to the US OEM (just as India cannot directly pay Russian OEMs, but has to pay Rosoboronexport which in turn disburses the amount to the Russian OEMs).
4. When it comes to progressive payment tranches as well as payments kept as deposits for obtaining prompt spares support, the international norm is to keep this money in an escrow account so that the principal amount gathers interest, & release the money by wire-transfer once the contract has been fulfilled.
5. But in India's case, the MoD's bureaucrats knew next-to-nothing about escrow accounts & therefore ended up making progress payments directly to the US Defense Dept (which do not gather any interest), leading to a pile-up of India-paid US$ with the US DoD.

• The norm is to release money from the escrow account ONLY after 2 criteria have been met:
  • 1) Factory Acceptance Tests of the hardware; &
  • 2) Pre-Delivery Inspections prior to the hardware being shipped/ferried out.
• But it now appears that officials of the MoD were unaware of such norms until recently!
• Now, corrective action has been taken & therefore more liquidity is now available to the MoD to make payments for hardware purchases in US$ for a lot of non-US products.
• Inference: A K Antony & Co were criminally negligent while discharging their duties, plain & simple.

@Abingdonboy @Levina @anant_s @ranjeet @JanjaWeed @nair @MilSpec @AUSTERLITZ
If PSK description is correct, then i wonder how much mismanagement is really inside MOD tranche payment system...

hopefully DM MP will review and corrective actions will be taken to see that we dont repeat this mistake.

 

[Abingdonboy]

Inference: A K Antony & Co were criminally negligent while discharging their duties, plain & simple.

Keep pulling at the threads and a LOT will be exposed IMO.

 

[Bheemsen]

I can fill in 10 pages to show the work done by MOD.
BUT
we know the truth about you lot, so, I am not gonna bother correcting or educating you.

So, please carry on...

You chamcha bhakts have nothing to show , i dare you list any major necessary defense procurement fast tracked by this UPA 3 govt , people have changed not the style of working , this current batch is even more pathetic and loud mouth too

 

[noksss]

This is what Prasun K Sengupta explained
Original poster question
"It was for the first time that the defence ministry took stock of military sales through an account held by the US government and found that due to "ill-management of this account, slightly less than $ 3 billion piled up"
Is there an explaination for that?

And then,
"In May-June last year, we reviewed it. We have re calibrated it has come down from about $3 billion to $1.8 billlon," he said.

PSK replied
Regarding FMS, everyone in the media was totally confused because they simply do not know how the FMS system works. Here's how it works:

1. After inking a FMS procurement contract, the buyer immediately makes a wire-transfer via SWIFT of the initial down-payment (20% of contract value) to the US Defense Dept's account in the Federal Reserve Bank of New York.
2. The Defense Dept in turn transfers this money to the US prime industrial contractor that builds the hardware.
3. Under FMS, India cannot make direct payments to the US OEM (just as India cannot directly pay Russian OEMs, but has to pay Rosoboronexport which in turn disburses the amount to the Russian OEMs).
4. When it comes to progressive payment tranches as well as payments kept as deposits for obtaining prompt spares support, the international norm is to keep this money in an escrow account so that the principal amount gathers interest, & release the money by wire-transfer once the contract has been fulfilled.
5. But in India's case, the MoD's bureaucrats knew next-to-nothing about escrow accounts & therefore ended up making progress payments directly to the US Defense Dept (which do not gather any interest), leading to a pile-up of India-paid US$ with the US DoD.

• The norm is to release money from the escrow account ONLY after 2 criteria have been met:
  • 1) Factory Acceptance Tests of the hardware; &
  • 2) Pre-Delivery Inspections prior to the hardware being shipped/ferried out.
• But it now appears that officials of the MoD were unaware of such norms until recently!
• Now, corrective action has been taken & therefore more liquidity is now available to the MoD to make payments for hardware purchases in US$ for a lot of non-US products.
• Inference: A K Antony & Co were criminally negligent while discharging their duties, plain & simple.

@Abingdonboy @Levina @anant_s @ranjeet @JanjaWeed @nair @MilSpec @AUSTERLITZ
If PSK description is correct, then i wonder how much mismanagement is really inside MOD tranche payment system...

hopefully DM MP will review and corrective actions will be taken to see that we dont repeat this mistake.

We have a far more threat from the Moles in the MoD which flourished during the UPA regime because of either their criminal negligence or them being corrupt . Remember the case when there was a exercise in Rajasthan the then IA Chief informed Anthony about the exercise over phone and immediately this was leaked to Pakistan army or Remember the case about a person called Honey Bee which the PA was boasting to David Headly that they were very much satisfied with the info they are getting about IA and guess what ISI even bugged the president's office . Now the point is the F$cker Anthony did nothing to have a serious investigation on all this case or to prevent the threat. Bcoz for him maintaining the clean image is far more important than the national security

 

[Rajaraja Chola]

Honestly disappointed with Parrikar. Thought he was level headed. But he too occasionally gives out war mongering statements, unfinished business continuing from UPA, defence purchases pending... :/

 

[Abingdonboy]

3 biilion dollar, that is large amount. The officials who mismanaged needs to be punished, this is not negligence but has smack of corruption.

It's not corruption, these funds were held in a US state account. It's clear mismanagment.