Centre asks CBI to probe Denel case

Just as it had vowed to do, the government has now asked the CBI to inquire into the possible involvement of middlemen, beneficiaries and wh...

Just as it had vowed to do, the government has now asked the CBI to inquire into the possible involvement of middlemen, beneficiaries and whether there was any malafide in the purchase of the South African Denel anti-material rifle by the NDA government. The guns were purchased in 2003.

This comes even as the CBI has told the Government that it needs more specifics in the 37 Defence deals that show ‘‘commission of cognisable offence.’’ Indicating that mere reference is not enough to register criminal cases.

Meanwhile, an official at Denel in South Africa who did not want to be named, said: ‘‘We are not allowed to comment on the issue at the moment, as we are still in the process of providing the Indian government with details they have requested. It would not be OK for us to say anything at this stage.”

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DoPT sources said the CBI has been sent a clipping of the report in Cape Argus which alleged that kickbacks were paid to ‘‘influence India’s decision to choose Denel as the supplier’’.

The total value of the purchase is $3.86 million. The agency has been asked to investigate the alleged payment to Varas Associates, a company named in the newspaper report, as having received three separate payments.

Then Defence Minister George Fernandes has argued that Denel was also supplying the weapon to Pakistan and India wanted to pre-empt that by purchasing the gun from Denel.