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India: Agents Banned from Defence Contracts  


Following the Bofors sandal in the mid-1980s, all Indian defence contracts contain a clause stating that a company can be blacklisted and contracts cancelled if it uses middlemen.

In the case of the cancellation of Denel's existing contracts in India in 2005, the Indian defence advisor to South Africa, Captain (Indian Navy) Samir Advani in a letter to the African Armed Forces Journal in June 2005 stated that there was a "mandatory clause in the model contract... which provides for a declaration by the seller that neither has any agent been engaged nor any amount paid by him for facilitation of the contract and further, it also provides that the seller agrees that if it is established at any time to the satisfaction of the buyers that this declaration is incorrect, (the) seller will be liable to refund any amount paid as a gift, reward fee, commission or any such consideration to the buyer." Advani added that should anyone have wished to appoint an authorised representative or agent, the applicable rules were available on the Indian defence ministry's website and that the objectives of the guidelines were to ensure transparency.


References
UPI  [Publication date: 29/9/2009] 'Israel-India arms talks dogged by scandal'
   http://www.upi.com/Business_News/Security-Industry/2009/12/29/Israel-India-arms
   -talks-dogged-by-scandal/UPI-29681262105584/

[Date URL accessed: 4/1/2010 | Source ID = 16874]

Daily Times  [Publication date: 29/4/2006] 'Indian court demands answers on submarine kickback charge'
   http://www.dailytimes.com.pk/default.asp?page=2006%5C04%5C29%5Cstory_29-4-2006_
   pg4_15

[Date URL accessed: 11/5/2006 | Source ID = 14299]

The Statesman (India)  [Publication date: 22/3/2006] 'CENTRE DEFENDS SCORPENE DEAL'
[Date URL accessed: 8/5/2006 | Source ID = 14243]

Hindustan Times  [Publication date: 21/3/2006] 'DEFENCE MINISTER'S STATEMENT ON SCORPENE SUBMARINE PROJECT IN LOK SABHA'
   http://pib.nic.in/release/release.asp?relid=16704&kwd=
[Date URL accessed: 8/5/2006 | Source ID = 14244]

Sify News  [Publication date: 26/12/2005] 'CBI sends Letters Rogatory in Denel case'
   http://sify.com/news/othernews/fullstory.php?id=14058042
[Date URL accessed: 30/4/2008 | Source ID = 15927]

The Nation  [Publication date: 7/10/2005] 'India, France ink Scorpene sub deal worth $3 billion'
   http://www.nation.com.pk/daily/oct-2005/7/index2.php
[Date URL accessed: 11/5/2006 | Source ID = 14300]

Captimes  [Publication date: 4/10/2005] 'India cancels all deals with Denel' by Sapa
   http://www.capetimes.co.za/index.php?fSectionId=269&fSetId=156&fArticleId=29022
   74

[Date URL accessed: 10/10/2005 | Source ID = 14005]

businesiafrica  [Publication date: 4/10/2005] 'Denel refutes corruption allegations'
   http://business.iafrica.com/news/497068.htm
[Date URL accessed: 10/10/2005 | Source ID = 14000]

businessiafrica.com  [Publication date: 3/10/2005] 'India cancels all Denel deals'
   http://business.iafrica.com/news/496530.htm
[Date URL accessed: 10/10/2005 | Source ID = 14002]

businessiafrica.com  [Publication date: 24/6/2005] 'Denel used agent to seal Indian deal'
   http://business.iafrica.com/news/150138.htm
[Date URL accessed: 9/10/2005 | Source ID = 14001]

Defence India  [Publication date: 17/4/2005] 'Denel 'paid UK firm to swing India arms deal'' by Michael Schmidt
   http://www.defenceindia.com/company_news/news49.html
[Date URL accessed: 30/4/2008 | Source ID = 15928]


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