NEW DELHI: The VVIP chopper deal that is gathering storm over bribery
charges had been redflagged by finance ministry on at least two
occasions in 2008, sources privy to the developments told HT.
The expenditure department sought answers to 15 issues which came up during the preparation of the note on the acquisition which was to be discussed by the cabinet committee on security (CCS).
The air force had sought inclusion of two additional parameters—Traffic Collision Avoidance System and Enhanced Ground Proximity Warning System. The expenditure department wrote a second letter to defence officials after the latter’s first letter reportedly replied only partially to the initial queries. Queries mostly pertained to last-minute changes in specifications and its cost implications. The CCS, however, cleared the deal after it was convinced of the need of the choppers with additional safety parameters.
Earlier, during the UPA tenure, the number of choppers was also increased from 8 to 12 as it was collectively felt that four choppers would be required for non-VIP operations.
HOW A DEFENCE DEAL IS SIGNED
R500+
crore All military contracts worth more than Rs 500 crore have to be cleared by the Cabinet Committee on Security.
R500
crore The defence minister is empowered to clear purchases up to Rs 500 crore.
R150
crore The army, navy and air force headquarters’ have financial powers of Rs 150 crore.
The proposals for acquisition of military hardware begin with the military’s long term (15 years), medium term (5 years) and annual acquisition plans.
The military formulate the qualitative requirements of a particular weapon or platform it wants to induct.
The process kicks off with the defence acquisition council’s (DAC) acceptance of necessity (AON) for the proposed procurement. The defence minister heads the council, which also includes minister of state for defence, the three service chiefs and the defence secretary.
The DAC approval is followed by solicitations of offers --- the ministry floats a global tender. Military contractors respond to the request for proposals. They make their offers after considering the requirements of the armed forces.
The technical evaluation committee (TEC), constituted by the service headquarters, evaluates the technical bids submitted by the vendors. TEC shortlists equipment for trials.
The manufacturers of the short-listed equipment supply the desired number of units. Field evaluation or trials are carried out by the user service on the basis of standard operating procedures evolved by it.
The field trial team recommends the platform that meets the service’s requirements. The technical oversight committee, constituted by defence secretary, scrutinises the procedure, ensuring that trials and selection of vendors was done according to prescribed rules. TOC ensures compliance to qualitative requirements.
Commercial negations begin at this stage. The contract negotiation committee, headed by joint secretaryrank acquisition managers, recommends conclusion of a contract at a negotiated price. The proposal is sent to the Cabinet Committee on Security, headed by the Prime Minister, for approval after which a contract is signed.
THE VVIP HELICOPTER DEAL CONTROVERSY
MAR 1, 2007:
REUTERS FILE PHOTO Arrested Finmeccanica ex-chief Giuseppe Orsi in a VVIP chopper.
AgustaWestland and IDS Infotech sign a contract for the latter to provide IT support for the VVIP choppers.
AUG 2007-FEB 2010:
AgustaWestland pays IDS Infotech through multiple invoices for services that were never delivered.
2009:
IDS Infotech hives off Aeromatrix, a company that has key middlemen Guido Ralph Hasckhe and Carlo Gerosa as directors.
2012:
Latest record of Aeromatrix’s annual returns show that 82.66% of its shares are held by a company IDS Mauritius, while Hasckhe and Gerosa own the rest.
COURTESY:
16 Feb 2013
Hindustan Times (Mumbai)
HT Correspondent letters@hindustantimes.com
http://paper.hindustantimes.com/epaper/viewer.aspx
The expenditure department sought answers to 15 issues which came up during the preparation of the note on the acquisition which was to be discussed by the cabinet committee on security (CCS).
The air force had sought inclusion of two additional parameters—Traffic Collision Avoidance System and Enhanced Ground Proximity Warning System. The expenditure department wrote a second letter to defence officials after the latter’s first letter reportedly replied only partially to the initial queries. Queries mostly pertained to last-minute changes in specifications and its cost implications. The CCS, however, cleared the deal after it was convinced of the need of the choppers with additional safety parameters.
Earlier, during the UPA tenure, the number of choppers was also increased from 8 to 12 as it was collectively felt that four choppers would be required for non-VIP operations.
HOW A DEFENCE DEAL IS SIGNED
R500+
crore All military contracts worth more than Rs 500 crore have to be cleared by the Cabinet Committee on Security.
R500
crore The defence minister is empowered to clear purchases up to Rs 500 crore.
R150
crore The army, navy and air force headquarters’ have financial powers of Rs 150 crore.
The proposals for acquisition of military hardware begin with the military’s long term (15 years), medium term (5 years) and annual acquisition plans.
The military formulate the qualitative requirements of a particular weapon or platform it wants to induct.
The process kicks off with the defence acquisition council’s (DAC) acceptance of necessity (AON) for the proposed procurement. The defence minister heads the council, which also includes minister of state for defence, the three service chiefs and the defence secretary.
The DAC approval is followed by solicitations of offers --- the ministry floats a global tender. Military contractors respond to the request for proposals. They make their offers after considering the requirements of the armed forces.
The technical evaluation committee (TEC), constituted by the service headquarters, evaluates the technical bids submitted by the vendors. TEC shortlists equipment for trials.
The manufacturers of the short-listed equipment supply the desired number of units. Field evaluation or trials are carried out by the user service on the basis of standard operating procedures evolved by it.
The field trial team recommends the platform that meets the service’s requirements. The technical oversight committee, constituted by defence secretary, scrutinises the procedure, ensuring that trials and selection of vendors was done according to prescribed rules. TOC ensures compliance to qualitative requirements.
Commercial negations begin at this stage. The contract negotiation committee, headed by joint secretaryrank acquisition managers, recommends conclusion of a contract at a negotiated price. The proposal is sent to the Cabinet Committee on Security, headed by the Prime Minister, for approval after which a contract is signed.
THE VVIP HELICOPTER DEAL CONTROVERSY
MAR 1, 2007:
REUTERS FILE PHOTO Arrested Finmeccanica ex-chief Giuseppe Orsi in a VVIP chopper.
AgustaWestland and IDS Infotech sign a contract for the latter to provide IT support for the VVIP choppers.
AUG 2007-FEB 2010:
AgustaWestland pays IDS Infotech through multiple invoices for services that were never delivered.
2009:
IDS Infotech hives off Aeromatrix, a company that has key middlemen Guido Ralph Hasckhe and Carlo Gerosa as directors.
2012:
Latest record of Aeromatrix’s annual returns show that 82.66% of its shares are held by a company IDS Mauritius, while Hasckhe and Gerosa own the rest.
COURTESY:
16 Feb 2013
Hindustan Times (Mumbai)
HT Correspondent letters@hindustantimes.com
http://paper.hindustantimes.com/epaper/viewer.aspx
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