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Thursday, February 13, 2014

India’s Defense Sector Still Plagued by Corruption

AW101India’s defense procurement sector continues to be rocked by instances of corruption and wrongdoing that have the potential to compromise the country’s military modernization program. Worse still, such irregularities may yet have a bearing on domestic politics ahead of May’s presidential elections.

Current controversies
At least three major scandals – two of them related to purchases by ordnance factories and one to the Indian Air Force (IAF) – have led to the blacklisting of nine companies in the past eight years. Currently, the Central Bureau of Investigation (CBI) is investigating more than twenty cases of corruption and undue influence. India’s Ministry of Defence (MoD) has also blacklisted four major international companies - Rheinmetall Air Defence (RAD), Singapore Technologies Kinetics Ltd. (STK), Israel Military Industries Ltd. (IMI) and Corporation Defence Russia (CDR) – and the former chief of the Ordnance Factory Board (OFB) was arrested and jailed in 2010 for wrongdoing.

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