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Israel Military Industries Ltd.

India issues 10 year boycott on Israel Military Industries

Delhi authorities announce they have blacklisted six weapon companies suspected of involvement in 2009 corruption scandal. List includes firms from Switzerland, Russia, Singapore with deals estimated at $1.5 billion

India announced that it has issued a boycott on six weapon manufacturing firms for a period of 10 years, including the Israel Military Industries Ltd, following their alleged involvement in a corruption scandal exposed in 2009.

 

The Indian news agency on Monday reported that the government issued a statement saying it decided to blacklist the firms on the basis of evidence collected against them. The list also included Singapore Technologies Kinetics Ltd, Switzerland’s Rheinmetall Air Defense, Russia’s Corporation Defense (CDR) and two Indian firms.

 

None of the companies on the list were available for comment.

 

The final decision to boycott the firms came after India halted business transactions estimated at $1.5 billion with the six companies in 2009, after arresting former Ordnance Factory Board director general Sudipto Ghosh on suspicion of receiving bribes from the firms.

 

The companies were given an opportunity to refute the allegations and explain why they should not be penalized, the government statement read, adding that the decision to debar (the companies) "was taken after taking into consideration their replies."

 

Several of the companies appealed to the Indian High Court of Justice, and the court overturned the decision. However, the government then demanded more evidence to refute the claims, and when the companies failed to present the evidence, it decided to announce a boycott despite the court's ruling.

 

The boycott is expected to have a detrimental effect on the country's military development plans. This is not the first time the Indian government has halted weapons deals with Israeli firms on suspicion of corruption. Israel Aerospace Industries Ltd. and Rafael had a NIS 8 billion deal postponed several times due to investigation into a bribery affair surrounding a missile deal signed between the parties in the early 2000s.

 

Israel Military Industries stated in response that the company has yet to be notified about the matter. "Israel Military Industries has always acted and continues to act according to the law, and will work alongside the Indian authorities to settle the matter."

 

 

 


פרסום ראשון: 03.06.12, 13:41
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