India seeks info on alleged graft in USD 208 mn Embraer deal

New Delhi, Sep 10 (PTI) The USD 208 million jet deal withBrazilian aircraft maker Embraer during the UPA regime haskicked up dust with US authorities going into alleged paymentof kickbacks while India has sought information from thecompany within 15 days. After Defence Research and Development Organisation(DRDO) receives information, further steps may be initiated,the Defence Ministry said today after reports emerged that the2008 deal has come under the scanner of the US JusticeDepartment which has been probing Embraer for alleged paymentof bribes to secure contracts. "DRDO has sought information from manufacture of Embraeraircraft within 15 days on media reports on aircraft dealsigned in 2008," Defence Ministry sources said. "On receipt of information by the DRDO, further steps maybe initiated," they said. The deal was signed in 2008 between Embraer and the DRDOfor three aircraft equipped with indigenous radars for AEW&C(airborne early warning and control systems). The BJP attacked the Congress on the issue. Union Minister Ravi Shankar Prasad said they thought thatthe stories of Congress corruption would be less heard sincechange of power in 2014. However, every deal is giving signalof taint. "The past of UPA always keeps on appearing with alarmingregularity," he said at a press conference at the BJP office. The company has been under investigation by the USJustice Department since 2010 when a contract with theDominican Republic raised the Americans’ suspicions. Since then, the investigation has widened to examinebusiness dealings with eight more countries. "Investigations that have been opened by the governmentof the United States to establish whether Embraer paid bribesin order to obtain contracts abroad have affected deals thatthe Brazilian company closed with Saudi Arabia and India,"Brazilian newspaper Folha De São Paulo reported. It is suspected that a leading Indian middleman based inUK was roped in for the deal. DRDO chief S Christopher, who headed the AEW&S programmeearlier, did not pick up calls or respond to messages. Embraer is cooperating with the investigations andannounced in July that it was expecting to reach a deal soonwith American authorities, the paper said. The company has put USD 200 million aside to pay anyeventual fines that come about as a result of the process.MORE PTI SAP IAS KR VSCKUN