Tuesday, April 26, 2016

Anand Sharma, MP, Dy. LoP Rajya Sabha and Shri Raj Babbar, MP, Spokesperson AICC addressed the media.

Anand Sharma said today the BJP has unleashed a malicious propaganda to mislead the people on the agreement signed by the Government of India with Finmecanica for the purchase of Agusta Westland Helicopters alleging corruption, kickbacks and cover-ups. This has been stated on behalf of the Government and the Ruling Party by Minister Shri Ravi Shankar Prasad today. I categorically reject the accusations made, the innuendos and the aspersions that have been cast. We would like to place facts and our certain questions. It was way back in the August 1999 that the Indian Air Force which carries out all operations, communications and movement of the VVIPs sought the replacement of the Mi Helicopters. A global RFP i.e. Request for Proposal was issued in March 2002 to which four vendors had responded. The Technical Evaluation Committee had shortlisted three. Since EH-101 of Agusta Westland was not certified for an altitude of 6,000 Mts., it was not asked to participate in the flight Evaluation. On 19th November 2003, a Meeting between the Principal Secretary and the then Prime Minister i.e. the NDA headed by Shri A.B. Vajpayee on the subject was held. In the meeting, the then Principal Secretary, who is no more, had observed and rerecorded in writing that his main concern was that the framing of the mandatory requirement has led us effectively into a single vendor situation. It was also noted that Prime Minister and President had rarely made visits in places involving flying at an altitude beyond 4,500 Mts. In the Meeting , it was decided and recorded to make mandatory requirements for operational altitude, that was to alter the highest flying ceiling, it was altered to 4,500 Mts. from 6,000 Mts. This is very important to note that the decision to alter the mandatory requirement of the helicopter flying at an altitude of 6,000 Mts. was made in a meeting between the then Principal Secretary and Prime Minister in November 2003. The NSA was also a party to the decision. This Meeting was followed by a letter or a communication dated 22nd December 2003 from the PS of the Prime Minister to then Air Chief conveying that neither the PMO nor SPG was consulted while framing the mandatory requirements. It was conveyed that COAS and the Defence Secretary may review this matter to draw up a realistic mandatory requirement. Now why I have just said this is to give you the background i.e. altitude, the RFP process was started in the previous NDA Government and continued thereafter. Then very fact that the reasoning was given and justification as to why the requirement of 6,000 Mts. had to be altered was also communicated and recorded in writing by the then Principal Secrtary to the Prime Minister, then Director of the SPG, the NSA and this communication or directions was communicated to the Ministry of Defence and the Indian Air Force Headquarters. Thereafter, the negotiations were started, the negotiations continued after the change of Government but what is important for me to inform the Media is that when the contract was eventually signed with M/s Agusta Westland during the UPA Government, a special provision was put in, very specific contractual provision, against bribery and the use of undue influence. Article 22 of the said contract deals with penalty for use of undue influence. This clause entitles the buyers i.e. India to cancel the contract with the seller and recover from him the amount of any loss arising from such cancellation. Article 23 of the contract, dealing with the Agents and the agency commission requires the seller to confirm and declare that he has not engaged any individual or firm, whether Indian or foreign to intercede, facilitate or in any way to recommend whether officially or unofficially for the award of the contract. These are two Articles of the contract, in addition to that, there was another contractual provision – M/s Agusta Westland was asked to and signed an Integrity Pact with the Government of India – the validity of this Integrity Pact is from the date of its signing and extends up to five years or the complete execution of the contract whichever is later. It was only in February 2012 that the first report had appeared of some wrong doings and some allegations of corrupt practices. In February 2012, the Ministry of Defence received a communication from Italy from Finmecanica denying these statements or reports which were appearing. The Ministry of Defence and the Government of India was not satisfied. The Ministry of Defence, therefore, took a decision to seek a report from our Embassy in Rome and that report was received which referred to inherent difficulties in obtaining formal details of the case mentioned. The Ministry of Defence in July 2012 instructed the Indian Embassy in Rome that it should approach the Judicial Authorities directly. The decision to approach the Judicial authorities in Italy directly was made in July 2012 and instructions were thereafter sent to India's Ambassador. A formal application was made by Indian Embassy to the Prosecutor's office on 16 July 2012. There was also an allegation where a name was referred to one Michael by Shri Ravi Shanker Prasad. This name had appeared in 2012 and since there were connections and references to UK, in October 2012, the Defence Secretary of India, on the instructions of the then Defence Minister wrote to the Secretary West in the Ministry of External Affairs and information and details on the said British Citizen were sought from the Government of United Kingdom. ' What is very important for me to mention to the Media is that after all the information was received and these actions were taken and the Government of India was not satisfied with then explanations given but took the violation against the Integrity Pact and the terms of the contract very seriously. The UPA Government on the 1st of January 2014 took major decisions (a) to cancel the contract (b) to confiscate the guarantee money (c) to black-list Agusta Westland and (d) to direct the CBI and the ED to launch immediate investigations. So it was the UPA Government which took the case to the Italy court. It was the UPA Government which cancelled the contract and black-listed the firm. The probe was started in this country again by the UPA Government and not only the Bank Guarantee was seized but three helicopters which had come were also seized by the UPA Government. Now these are the facts. No Government or any ruling establishment where there is even a shadow of any involvement at any level of any person connected with the Government of the UPA or the Congress or any individual entity belonging to the Indian National Congress would not have dared take these bold decisions over a period of time. Nobody can say that it happened one fine night. I have given you the sequence of events and given you the dates and the details of the action taken. BJP has asked us questions – rather I have questions to ask of the Prime Minister Shri Narendra Modi and the present Government.

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