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A Tribune Exclusive
Why Eurocopter deal was scrapped
Relative of top Army officer tried to pass off civilian model as military one
Swati Chaturvedi

New Delhi, July 1
Bribery and scandal, which would have played with the lives of troops in Siachen, involving a middleman who was a relative of a serving top-level Army official and was trying to pass off a civilian helicopter as a military version, finally led to the scrapping of the $ 600 million Eurocopter deal.

The deal to purchase 197 helicopters to provide logistical support to the Army in Siachen was signed in February 2007 with European Aeronautics Defense and Space Company.

Authoritative sources revealed to The Tribune that the file was routed thrice to defence minister A.K. Antony, who finally said no after the ministry of defence in an in-house inquiry confirmed shocking findings.

Even French President Nicolas Sarkozy lobbied hard with Prime Minister Manmohan Singh and Congress president Sonia Gandhi to secure the whopping contract.

Consider these facts revealed by an in-depth Tribune investigation:

(1) Trial reports accessed by The Tribune made available to the MoD and the watchdog Comptroller and Auditor-General (CA&G) reveal that a civilian model of the light reconnaissance helicopter was sought to be passed off as the military one.

(2) The acquisition wing of the Army tried to say that the “engine was broadly similar’’ but the CA&G did not buy the story.

(3) During field trials the helicopter meant to be the lifeline for the troops in Siachen failed comprehensively and yet the Army top brass tried desperately to push for its purchase.

(4) The most shocking allegation of a blood relation of a top-level Army official, actively involved in evaluating and giving the final favourable assessment to the deal, working as a middleman for Eurocopter was found to be correct.

In order to avoid the huge public embarrassment and furore that would have ensured if the facts had been made public, the MoD quietly cancelled the deal despite pressure from the Army. Documents shown to The Tribune which formed part of the file, which finally led to the cancellation of the deal, established that the relative of a top Army officer was based in Europe and had a business relationship with Eurocopter.

It may be recalled that after the Bofors scandal the government had banned middlemen in defence deals.

Says a top MoD official: “The level of corruption is shocking. While relatives would have made millions, besieged troops in Siachen would have borne the brunt. This was a textbook scandal worse than the coffin scandal. And, but for the determination of some honest officials and the CA&G the troops would have paid the price.’’

Despite repeated attempts by The Tribune the Army refused to comment.