NATIONAL DEMOCRATIC ALLIANCE

Statement issued at a press conference
in New Delhi on March 20, 2006

Massive kickbacks and high-level cover-up in the Rs. 18,798-crore Scorpene submarine deal

The National Democratic Alliance views with great concern the recent exposes in one of the biggest corruption scandals of the UPA Government, which, as the Navy itself has now admitted, has gravely jeopardized India’s national security.

The scam surrounding the Rs. 18,798 crore Scorpene submarine deal has many disturbing elements. These are:

• The “War Room Leak” in the Naval Headquarters;

• The involvement of certain foreigners and Indian nationals in it;

• The illegal entry of middlemen in the deal, and the passing of highly sensitive national security information to foreigners, including such information as is available only with the Prime Minister, Defence Minister, Chief of Naval Staff and a few others;

• A 4% commission on the contract amount -- between Rs. 500-700 crores – which makes this by far the biggest defense scandal so far, one that is far bigger than Bofors;

• Evidence of involvement of the Congress party, some of its leaders and functionaries;

• Incorrect information given by the Defense Minister;

• Abhishek Verma, already under investigation in 12 cases of financial fraud, emerges as the chief middleman, asserting that he is acting on behalf of the Congress party;

• The well-established pattern of Thales, the French company (supplier of the Scorpene submarine) in bribing political leaders all over the world, and its blacklisting by the World Bank; and

• Growing evidence of a cover-up operation, deliberate governmental obfuscation, and acting against the interests of national security;

This convergence of so many disturbing elements in a major defense supply contract further establishes the corrupt character of the UPA government.

Information about this had first appeared in recent months in a section of the media. Subsequently, the NDA conducted its own study and investigation into several aspects of this major weapons contract. This has produced fresh information of highly incriminating nature. The enclosed multi-media presentation shares the totality of information available with us so far. As more information comes to light, we’ll share it again.

Our Demands * Terminate the Scorpene submarine contract. * Institute a credible Commission of Inquiry, involving appropriate investigative agencies, to pinpoint political responsibility and wrongdoing by others. * Immediate detention of all the middlemen -- Abhishek Verma, his associates, and others if any. * Action against foreigners involved in the naval War Room Leak.

 

Issued by the office of
Shri George Fernandes
Convenor of the National Democratic Alliance
3, Krishna Menon Marg, New Delhi