NEW DELHI (AlArabiya.net, AFP)
India warned Friday it would scrap a missile deal worth $2 billion with Israel if there was "credible evidence of malpractice."
Leftist parties have demanded a probe, alleging that middlemen were bribed by state-owned Israel Aerospace Industries to secure the contract for the sale of medium-range surface-to-air missiles to New Delhi.
Defense Minister A.K. Antony said so far no irregularities had surfaced but added he would not hesitate to take action if the charges proved true.
" The government will not hesitate to take stern action if there is credible evidence of malpractice " Indian Defense Minister A.K. Antony "The government will not hesitate to take stern action if there is credible evidence of malpractice," the United News of India quoted Antony as saying in the southern Indian town of Thiruvananthapuram.
The communists, who were part of the government until late last year, claim the Israeli firm paid out six billion rupees ($120 million) to win the deal.
The Israeli newspaper Haaretz reported late last month that Israel Aerospace Industries had refused to comment on the allegations but quoted sources who it said were familiar with the deal as saying the process followed regulations.
A section of the Indian military is also opposed to the contract, arguing it could ring the death knell to Indian efforts to build its own surface-to-air missile for which hundreds of millions of dollars have already been spent.
Antony said the contract was cleared in a "transparent manner" by the Indian cabinet but said he could take a series of steps to weed out corruption.
"The government can cancel the contract, initiate criminal proceedings and debar the company for five years... if any irregularities are found," he told a news conference. |
" Israel is just one of the 45 countries from where India is purchasing arms with Russia topping the list " Antony India banned middlemen in military deals following allegations of bribery in a multi-billion-dollar artillery deal in the 1980s with Swedish firm Bofors.
That scandal led to the downfall of the government of Congress prime minister Rajiv Gandhi in 1989.
Israel replaced France in 2007 as India's second-largest arms supplier after Russia but Antony said New Delhi was not seeking closer military ties with the Jewish state.
"Israel is just one of the 45 countries from where India is purchasing arms with Russia topping the list," Antony added.
India, the biggest weapons buyer among emerging countries, has imported military hardware worth $28 billion since 2000.
It has earmarked another $30 billion to be spent by 2010 that includes $12 billion on 126 fighter jets for which six global aeronautical giants are in the running. |
