Dassault Aviation head arrested on bribery charge. MOD should put on hold IAF-Dassault-Rafael fighter jets deal -- Dr. Swamy writes to Antony MOD
Shri A.K. Antony February 26, 2014
Minister of Defence
South Block, New Delhi
Dear Shri Antony:
Enclosed is a copy of a news item from the Feb 22ndHindustan Times, Delhi Edition, that states the French police had arrested Dassault Aviation Head for a bribery charge. Dassault has entered into a controversial deal to sell Rafael fighter jets for the IAF.
Since this news item brings prima facie the issue of a scam in the Rafael deal also, I urge you to put the deal on a hold till the Defence Ministry gets the full details, and takes a view on whether the deal should reach closure or not.
Yours Sincerely
Subramanian Swamy
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Serge Dassault, who heads Dassault Aviation, was taken into custody Wednesday for allegedly buying votes in Corbeil-Essonnes where he was formerly mayor.Dassault in 1998 received a two-year suspended prison sentence in Belgium for bribing members of the Socialist Party to win a helicopter deal.
Dassault’s Rafale aircraft won the Indian MMRCA contract in 2012, its first foreign fighter aircraft sale and the company is currently vying to supply jets to the UAE. It will be interesting to see how India will view Dassault’s latest trouble with the law.While there is no direct link between Serge Dassault’s present and past brushes with the law and bids for military and civilian aircraft contracts abroad, it could be hugely embarrassing for India if Serge Dassault’s questionable ethics dominate world headlines.
New Delhi maintains zero tolerance to corruption in defence procurement and recently disbanded a helicopter contract with AgustaWestland merely on allegations of bribery without the outcome an investigation in India and Italy.
Speculation was rife in the past year that the future of the defense side of Dassault could form part of a bigger consolidation with either Thales or Safran. However, the current status of this proposal remains unclear.According to reports, the 88-year-old Dassault is “accused of running the suburb like a mafia don” and is currently is being questioned in the western Paris suburb of Nanterre.
The move comes a week after Dassault’s parliamentary immunity was lifted, according to the Associated Press.Dassault is suspected of “operating an extensive system of vote buying which influenced the outcome of three mayoral elections in Corbeil in 2008, 2009 and 2010, which were won either by Dassault or by his successor and close associate Jean-Pierre Bechter,” the report adds.
The vote-buying inquiry is connected to two shootings (considered to be attempted murder by the police) which took place is Corbeil.”I can prove my total innocence in these so-called buying of votes, accusations that have been invented by my political adversaries,” Dassault was quoted as saying. “I am ready to cross this step”.
Investigating judges are focusing on huge sums of money transferred between France and Lebanon, including one totalling €18m, which they suspect could have been used to buy votes. Of this sum, about €3m was sent back to France, according to The Guardian.
As well as the alleged vote buying, Dassault could be charged with money laundering and misuse of public assets — sufficiently serious crimes to raise the possibility of a prison term, the report said.
Dassault Aviation Head Arrested , Will it effect India’s Mmrca !!! | idrw.org
http://idrw.org/?p=33864
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But negotiations to buy 18 planes off-the-shelf and build the rest in India have slowed and will stretch into the following fiscal year, defence minister AK Antony told a news conference at a defence sector trade fair.
The military, the world's biggest arms importer for three years running, has already spent 92% of its defence capital budget for this year, he said.
"Major procurement can only be possible in the next financial year. There is no money left," Antony said. The country is due to hold elections by May and a new government is expected to be installed the following month.
India is in the midst of a $100 billion defence modernisation programme to replace Soviet-era planes and tanks, and narrow the gap with China, with which it fought a war in 1962. A border dispute lingers.
But the defence upgrade programme has moved slowly like other major projects under the current government and partly because of Antony's insistence on transparency and integrity in the defence procurement process, long dogged by allegations of kickbacks.
Last month, Antony's office cancelled a $560 million euro deal with AgustaWestland for 12 helicopters after allegations were made that bribes had been paid to middlemen to secure the contract.
Clean-up
Antony said there could be delays in arms procurement decisions as he tried to clean up the process, but it was important to send a message that India would tolerate no wrongdoing in these deals.
"Everybody will get opportunities, if products are good and prices are low. There is no need to do lobbying," he said.
India chose the Rafale after a bidding contest against the Eurofighter Typhoon aircraft, made by a consortium involving Airbus Group, Finmeccanica and BAE Systems.
Dassault Aviation's chief executive, Eric Trappier, said in December that he was optimistic about finalising the fighter jet deal within a few months, though he was unsure whether it would be sealed before or after the national election.
Antony said the two sides were also trying to tackle the issue of life cycle costs relating to the Rafale.
India's air force, which launched the acquisition process in 2005, has said that delays will severely affect the fleet strength of the force.
The military was forced to turn to the overseas market because a programme to manufacture home-grown combat planes to replace ageing Russian MiG-21 fighters is running 15 years behind schedule.
![[IMG]](http://www.defenseworld.net/uploads//news/big/serge-das_1392883754.jpg)
Serge Dassault, who heads Dassault Aviation, was taken into custody Wednesday for allegedly buying votes in Corbeil-Essonnes where he was formerly mayor.Dassault in 1998 received a two-year suspended prison sentence in Belgium for bribing members of the Socialist Party to win a helicopter deal.
Dassault’s Rafale aircraft won the Indian MMRCA contract in 2012, its first foreign fighter aircraft sale and the company is currently vying to supply jets to the UAE. It will be interesting to see how India will view Dassault’s latest trouble with the law.While there is no direct link between Serge Dassault’s present and past brushes with the law and bids for military and civilian aircraft contracts abroad, it could be hugely embarrassing for India if Serge Dassault’s questionable ethics dominate world headlines.
New Delhi maintains zero tolerance to corruption in defence procurement and recently disbanded a helicopter contract with AgustaWestland merely on allegations of bribery without the outcome an investigation in India and Italy.
Speculation was rife in the past year that the future of the defense side of Dassault could form part of a bigger consolidation with either Thales or Safran. However, the current status of this proposal remains unclear.According to reports, the 88-year-old Dassault is “accused of running the suburb like a mafia don” and is currently is being questioned in the western Paris suburb of Nanterre.
The move comes a week after Dassault’s parliamentary immunity was lifted, according to the Associated Press.Dassault is suspected of “operating an extensive system of vote buying which influenced the outcome of three mayoral elections in Corbeil in 2008, 2009 and 2010, which were won either by Dassault or by his successor and close associate Jean-Pierre Bechter,” the report adds.
The vote-buying inquiry is connected to two shootings (considered to be attempted murder by the police) which took place is Corbeil.”I can prove my total innocence in these so-called buying of votes, accusations that have been invented by my political adversaries,” Dassault was quoted as saying. “I am ready to cross this step”.
Investigating judges are focusing on huge sums of money transferred between France and Lebanon, including one totalling €18m, which they suspect could have been used to buy votes. Of this sum, about €3m was sent back to France, according to The Guardian.
As well as the alleged vote buying, Dassault could be charged with money laundering and misuse of public assets — sufficiently serious crimes to raise the possibility of a prison term, the report said.
Dassault Aviation Head Arrested , Will it effect India’s Mmrca !!! | idrw.org
http://idrw.org/?p=33864
IAF inks $18-bn deal for fighter jets with Dassault
AFP New Delhi, January 31, 2012French firm Dassault has won a multi-billion dollar contract to provide 126 fighter jets to the Indian military, a government source in New Delhi said on Tuesday.
Dassault will sell its Rafale multi-role jet to India after beating the Eurofighter consortium to secure the long-awaited contract, which is estimated to be worth $12 billion.
"You can take it as confirmed that Dassault has got the deal. Since there were only two companies and it has come out as the lowest bidder," a government source told AFP.
The huge deal to supply war planes to fast-developing India has been fiercely fought over for four years.India’s biggest military deal
India in April pulled a surprise by cutting out US bidders Boeing and Lockheed Martin -- much to Washington's disappointment -- as well as dropping Sweden's Saab AB and the Russian makers of the MiG 35 from the race.
No money, India delays purchase of Rafale fighters
Reuters New Delhi, February 06, 2014
India's military has postponed until the next financial year a plan to buy 126 fighter planes from France's Dassault Aviation, the defence minister said on Thursday. New Delhi had picked the Rafale fighters for exclusive negotiations in January 2012 and had been expected to finalise the deal, estimated at $15 billion, by the end of March.
But negotiations to buy 18 planes off-the-shelf and build the rest in India have slowed and will stretch into the following fiscal year, defence minister AK Antony told a news conference at a defence sector trade fair.
The military, the world's biggest arms importer for three years running, has already spent 92% of its defence capital budget for this year, he said.
"Major procurement can only be possible in the next financial year. There is no money left," Antony said. The country is due to hold elections by May and a new government is expected to be installed the following month.
India is in the midst of a $100 billion defence modernisation programme to replace Soviet-era planes and tanks, and narrow the gap with China, with which it fought a war in 1962. A border dispute lingers.
But the defence upgrade programme has moved slowly like other major projects under the current government and partly because of Antony's insistence on transparency and integrity in the defence procurement process, long dogged by allegations of kickbacks.
Last month, Antony's office cancelled a $560 million euro deal with AgustaWestland for 12 helicopters after allegations were made that bribes had been paid to middlemen to secure the contract.
Clean-up
Antony said there could be delays in arms procurement decisions as he tried to clean up the process, but it was important to send a message that India would tolerate no wrongdoing in these deals.
"Everybody will get opportunities, if products are good and prices are low. There is no need to do lobbying," he said.
India chose the Rafale after a bidding contest against the Eurofighter Typhoon aircraft, made by a consortium involving Airbus Group, Finmeccanica and BAE Systems.
Dassault Aviation's chief executive, Eric Trappier, said in December that he was optimistic about finalising the fighter jet deal within a few months, though he was unsure whether it would be sealed before or after the national election.
Antony said the two sides were also trying to tackle the issue of life cycle costs relating to the Rafale.
India's air force, which launched the acquisition process in 2005, has said that delays will severely affect the fleet strength of the force.
The military was forced to turn to the overseas market because a programme to manufacture home-grown combat planes to replace ageing Russian MiG-21 fighters is running 15 years behind schedule.