Political Missile

The Barak scandal could pin down the UPA Government's harshest critic, but it could also recoil on the armed forces if the firm that allegedly paid Rs 2 crore for clinching the deal is blacklisted

PICTURE SPEAK

DOUBLE TROUBLE: Fernandes with Jaitly

If the CBI suspected kickbacks in the deal-under investigation since 2001, when the Tehelka tapes caught Jain bragging about bagging defence deals-they weren't telling the UPA Government. Earlier this year, the Ministry of Defence (mod) signed a long-term commitment with the Israeli firm to jointly develop the Barak-II, a longer-ranged version of the missile cleared by Fernandes in 1999. In May this year, Manmohan Singh witnessed a successful interception of an "enemy" anti-ship missile by the Barak fired from the INS Viraat, off Mumbai.

BARAK FACTS

1993 The Indian Navy scouts for anti-missile system 1997 Navy approves acquisition of one Barak system 1998 Fernandes sworn in as defence minister 2000 Deal for seven Barak systems signed 2001 Tehelka alleges kickbacks in deal 2006 Fernandes and Jaitly chargesheeted

Fernandes has been on the UPA radar for some time. Last year, Defence Minister Pranab Mukherjee had to hastily roll back a "clean chit" given to Fernandes, defending the NDA government's hasty purchases of 35 military items during the Kargil conflict. The Government filed a second affidavit bringing 20 more purchases under the CBI scanner.

The bureau says it has discovered kickbacks of Rs 1 crore, which were paid by South African arms firm Denel to clinch the order to supply 200 anti-material rifles worth Rs 21 crore to the Indian Army, bribes from Russian arms firms to supply Krasnopol laser-guided howitzer ammunition and irregularities in the purchase of Armoured Recovery Vehicles.

Now, the menacing prospect of IAI being blacklisted looms large over the armed forces. IAI is the biggest defence firm in India's second major arms supplier Israel-it accounts for nearly $1 billion (Rs 4,500 crore) in annual arms sales and has a whole spectrum of defence supplies-Heron and Searcher-II Unmanned Aerial Vehicles, Phalcon AWACS aircraft and the wherewithal to upgrade the MiG series.

CHARGESHEET

GEORGE FERNANDES The then defence minister in the NDA government allegedly overruled the DRDO opinion, which was in favour of the indigenously developed Trishul missile, and tried to get the proposal approved by the Cabinet Committee on Security despite objections from the defence secretary. IN DEFENCE POLITICS OF VENDETTA "The Italian has a score to settle with me. Her mother-in-law suffered at my hands, so she has let it be known that I should be targeted." IT WASN'T ME "The navy proposed the induction of the Barak, which was later approved by A.P.J. Abdul Kalam." CONSPIRACY THEORY "This could be part of a conspiracy to see that our armed forces are mutilated and someone has to enquire into this." FUTURE PLANS "I will face the inquiry. I will go to the people and tell them that Sonia Gandhi is targeting me."   RSS CHIEFS: POWER OF THE PAST JAYA JAITLY The then president of the Samata Party allegedly received a Rs 2-crore kickback from Barak middlemen ADMIRAL SUSHIL KUMAR The former naval chief allegedly colluded with other accused and put up a note directly to Fernandes to import six Barak systems. He misrepresented facts by citing DRDO concurrence given three years earlier when the Trishul was still in initial development stage, despite the DRDO chief opposing the proposal. R.K. JAIN The national treasurer of the Samata Party allegedly received several lakhs in bribe for pushing Barak through. The final deal of $268.63 million (Rs 1,125 crore) was inflated by $17 million (Rs 71 crore).

The navy, which has a total of 11 systems (each has 16 missiles) on board its frontline warships and plans to equip its future combatants-the three Kolkata class destroyers and the three Shivalik class frigates-with the 60-km range Barak-II, is heavily dependent on IAI. Experience shows that blacklisting firms recoils on the armed forces-supply of spares for the Bofors was halted and Denel's blacklisting last year has interminably delayed the army's plans to acquire 400 more howitzers.

The argument against importing the Barak was that it would harm the Trishul short-range surface-to-air missile being developed by the Defence Research and Development Organisation (DRDO) since 1983. DRDO officials, including its then chief A.P.J. Abdul Kalam, had argued that the seven Barak systems cost twice as much as the indigenous Trishul programme (the missile was subsequently shelved by the DRDO). When the Kargil conflict threatened to escalate into full-scale war in 1999, the service chiefs were asked to list their requirements and Kumar had pushed for the Barak. "Our warships needed protection at sea and the Trishul was nowhere on the horizon, so we asked for retrofitting of seven warships with it,'' said Kumar.

After a demonstration of the Barak, acquisition of one system was proposed by then naval chief Admiral Vishnu Bhagwat for the INS Viraat modernisation in 1997. The Russian gun-missile system Kashtan was evaluated against it, but was found unsuitable. Fernandes said he had consulted Kalam-then scientific adviser to the prime minister-who had given him the green signal. The deal, for the installation of the missile on six warships, was signed in March 2000 and, in the words of a senior naval official, "The navy is exceptionally happy with its performance.'' Clearly, the UPA will be happy if it nails Fernandes as well.

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