MOD blacklist barrel grows longer

Ajai Shukla / New Delhi November 17, 2009, 0:19 IST
Over this last decade, the Ministry of Defence (MoD) has “blacklisted” so many foreign arms corporations that the military’s modernisation plan has virtually stalled. The MoD “blacklist” is not a formal document; an arms vendor is mostly embargoed unofficially, when senior bureaucrats agree that it is playing dirty.

The hit list reads like a who’s who of global weapons suppliers, including corporations with good records of delivering arms to India. Starting with Bofors in the late 1980s, the list grew to include Denel of South Africa; Israel Military Industries (IMI); Singapore Technologies Kinetic (STK); and now Thales of France. Earlier this year, the world’s biggest defence contractor, Lockheed Martin, was on the blacklist. Now another global giant, BAE Systems, seems headed there after problems with setting up an assembly line in HAL Bangalore for the Hawk jet trainer.

It is hardly news that arms sales and corruption walk together. Arms vendors routinely bribe political leaders, bureaucrats and senior military officers, not just in India but worldwide. BAE Systems allegedly bribed Saudi Arabian royals with hundreds of millions of dollars in the infamous Al Yamamah contracts. Thales, credibly accused of bribing South African presidential hopeful Jacob Zuma, is also being sued by Taiwan to recover US $590 million allegedly paid in kickbacks to win a deal for six warships. Most arms companies maintain multi-million dollar slush funds to ease the way for their giant deals.

But the Indian MoD is wholly wrong in behaving as if the problem is just one of predatory arms corporations. All those bribes are being paid to somebody; but no MoD official is in jail for having accepted a bribe. Instead South Block’s vendor blacklists grow longer and longer. These blacklists are now choking defence procurement.
Read the full article from Business Standard: Ajai Shukla: No thanks, you're blacklisted!