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Indian arms deal probe exonerates Denel


Defenseweb.com

By Oscar Nkala

October 2, 2013

India’s Central Bureau of Investigations (CBI) has closed its eight-year long corruption probe into South African arms manufacturer Denel following allegations that it paid kickbacks to Vara Associates, a company based in the Isle of Man, to help secure five deals between July 1999 and April 2005, to supply the Indian Army with 1 000 anti-material rifles and over 300 000 rounds of ammunition.

Indian defence procurement rules and the country’s Prevention of Corruption Act expressly forbid original equipment manufacturers who bid for contracts with the army from hiring any middlemen or intermediaries to influence or ‘swing’ the adjudication of the contracting process.

According to reports from the Indian capital New Delhi, the CBI dropped the case on Monday after eight of years of trans-national investigations in South Africa, the Isle of Man, Switzerland and the UK failed to prove the allegations levelled against Denel.

The probe started in June 2005, two months after the Indian government stopped all dealings with Denel amid allegations that the South African company had paid ‘commission’ to the value of 12.75 per cent of the total worth of the arms deals secured with the Indian Army to Vara Associates, based in the tax-haven Isle of Man, to ‘swing’ the five contracts in its favour.

The contracts involved the supply of 700 NTW-20 anti-material rifles (bunker-busting and light armour penetrating), knocked-down kits for another 300 rifles of the same make and 398 000 rounds of ammunition. According the CBI case opened in June 2005, allegations against Denel were that it had made the pay-offs to Vara Associates, accused by investigators of acting as an intermediary, disguised as technical assistance and consultancy fees.

In the course of its eight-year probe, the CBI sent requests for information to judicial and investigative authorities in the UK, South Africa, the Isle of Man and Switzerland which all reported that they could not find any evidence to support the charges against Denel.

Several employees of Vara Associates and the Indian Ministry of Defence were being probed alongside Denel on allegations of conniving with Vara Associates to swing the five contracts in question in favour of the South African company.

After the Denel deal fell through, India’s Ordnance Factory Tiruchirappalli began manufacturing the locally developed Vidhwansak multi-calibre anti-materiel rifle, which bears many similarities to the NTW-20. Available in 14.5 mm, 12.7 mm and 20 mm calibres, it has an effective range of approximately 2 000 metres.

Corruption Watch queries R13m tender


www.oil.co.za  Business Report

By SAPA

June 21, 2012

A Corruption Watch probe has found irregularities in a R13 million tender awarded by the department of transport (DOT), the civil society organisation said on Thursday.

The department had awarded a tender to a company which had not fulfilled all the necessary requirements, and overpaid for services by R10 million, it said in a statement.

Global Interface Consultancy won a tender to manage conference and communication services for the department of transport’s international investor conference in June last year.

It had submitted a bid for R13.5 million.

Losing bidder Indigo Design and Event Marketing bid R3.837 million – about one-quarter of the winning bid.

Indigo Design, a BEE-accredited company, lodged complaints with the department, the Public Protector, and Corruption Watch (CW).

“CW’s further investigation into the DOT tender award revealed gross irregularities in the tender process,” Corruption Watch said.

Corruption Watch had handed over its findings, as well as two cases involving irregular public tenders, to the Public Protector for further investigation.

It was in the process of formalising a working relationship with the Protector.

“We will closely monitor the cases that we hand over to the Public Protector and we will assist her office with further evidence and information gathered from the public,” said executive director David Lewis.

“It should be stressed that this case and each of the serious acts of corruption that we are investigating were reported by alert members of the public.”

Comment from the department could not be immediately obtained. – Sapa

Kenya: IEBC Tender Team Quits Over Biometric Deal


 

AllAfrica.com

BY MOSOKU GEOFFREY

July 16th, 2012

Uncertainty hangs over the process of awarding the Biometric Voter Registration (BVR) solution kits contract after the IEBC tender committee stepped aside last week. The team quit following weeks of squabbles pitting some IEBC commissioners against its secretariat and they have been tussling over which firm is the most suitable to be awarded the tender.

The Praxedes Tororey-led committee handed in their resignation on Friday, only days after CEO James Oswago appeared to reject their second report for the multibillion-shilling tender award. Oswago had written to the Public Procurement and Oversight Authority (PPOA) seeking guidance on the recommendation to award the tender to Face Technologies of South Africa that emerged third in cost evaluation.

Face Tech, which quoted Sh4.63 billion, was ranked third by the commission’s technical evaluation committee behind 4G Identity Solutions of India and Symphony of Kenya with bids of Sh3.76 billion and Sh3.98 billion respectively. The committee also short-listed OnTrack of Israel which was asking for Sh8.31 billion to carry out the contract of supplying IEBC with the electronic voter registration kits.

Earlier the committee had recommended the award to 4G Solutions of India but the report was returned for reassessment when claims cropped up that the firm had been blacklisted in India. A team of eight officers of the technical committee travelled to India in May on a due diligence mission. The technical team reportedly said that 4G had been cleared of the performance queries.

Sources within the commission now say some commissioners are pushing for Face Tech to be given the tender due to its experience having conducted voter registration in South Africa, Namibia, Mozambique, Sierra Leone, Lesotho and Sri Lanka. Their argument is that even though 4G was the lowest bidder, it has no experience in voter registration, having only been involved in Identity Card registration in India.

Out of the the 28 firms that bid for the tender, only Face Tech (55m US$), Canadian firm Code (56mUS$), and OnTrack of Israel (99m pounds) had the experience of having registered voters. This is said to have informed the decision to consider Face Tech, which came second in financial evaluation and number one in technical evaluation. OnTrack emerged number one in financial evaluation. However in price quotation, 4G emerged the cheapest.

Procurement expert Dennis Omondi argues that the price of the bidder is not the automatic consideration when awarding a tender but the experience and financial stability of the firm also matter. “If number one or even number two are disqualified for any reason, the Act allows procurement entity to evaluate up to the time they get a contractor who best meets their objectives,” Omondi says.

Omondi argues that the law provides for room in price negotiation before a contract is signed. However, Oswago said the law envisages the lowest bidder be awarded the contract. “You have to look at the law and see what it provides,” Oswago said. He further argued that the tender and evaluation committees are bound by law to work within the budget and available funds for that specific procurement of goods or service.

Section 26 (3) of the Procurement and Public Disposal Act of 2005 states; “All Public Procurement shall be (a) within the approved budget of the procuring entity and shall be planned by the procuring entity concerned through an annual procurement plan.” Oswago told the Star that “IEBC wrote to Treasury and sought Sh3.4 billion which we were provided with as it was within our annual plan and therefore I don’t think the tender committee will work outside this amount. I will defend my officers with my life if their report is within the law”.

The current stalemate is threatening to derail the process ad return the country back to the manual registers that the Johann Krieglar Report condemned for being responsible for the 2007 general election debacle. The IEBC has announced that it will begin a new voter registration exercise next month, and it is not clear which system will be used. Some 19 million eligible voters will be targeted. Yesterday, Oswago said he has not received the tender committee’s resignation letter, and the process will not be affected by the move. “I want to assure Kenyans that come 3rd or 4th of December, the county will have a new voters register using BVR.”

In 2010, Code Inc of Canada was awarded the tender for a pilot project in eight constituencies across the country and although Code was among the 28 initial firms and tendered for 55m US$ (Sh4.6b), it was knocked out by the technical committee.

 

Bigwigs oppose dalit procurement quota


The Times of India

November 4, 2011

NEW DELHI: The proposal to make it mandatory for central government bodies to source at least 4% of their purchases from enterprises owned by Scheduled Castes/Scheduled Tribes was greeted with scepticism in the Cabinet, before an invocation of Congress president Sonia Gandhi  made the doubting Thomases fall in line.

Sources said a number of members of the Cabinet, including three who are in-charge of large PSUs, strongly expressed their reservations about the proposal. One the sceptics doubted there
were enough entrepreneurs among dalits/tribals to help the government meet the mandatory requirement, while another expressed the fear of quality being compromised.

The misgivings threatened to hold up the decision when one of the attendees reminded his colleagues that it was Congress president Sonia Gandhi who had made a commitment to give preference to dalit/tribal enterprises in government procurements. The Cabinet minister recalled that Sonia, who visited South Africa in August 2007, was impressed by the country’s policy to leverage public procurements to encourage businesses promoted by blacksRead more.

India, South Africa Trade Deal to Foster Joint Ventures


Diamonds.net

September 23, 2011

By Dilipp S Nag

RAPAPORT… India’s Minister of State for Commerce & Industry, Jyotiradiya Scindia, stated that there are tremendous prospects for South Africa‘s diamond mining companies to enter into long term contracts with the Indian diamond firms and rough purchasers such as Diamond India Ltd. and MMTC Ltd.

India and South Africa on Thursday agreed to strengthen bilateral cooperation in the micro, small and medium enterprise (MSME) sector through joint ventures, technology collaborations and marketing partnerships, the government said in a statement.

”There is, however, ample scope of diversifying the existing trade basket by bringing in many more manufactured goods,” said Scindia, who is in South Africa for one-day official visit. He met with South Africa‘s Deputy Minister for Trade & Industry, Elizabeth Thabethe, and discussed several ways to boost trade.

South Africa is India’s second largest trading partner in Africa. The trade between two countries was at $10.6 billion in the fiscal period of 2010-2011 and is expected to reach $15 billion by 2014.

”The MSME sector accounts for a large share of industrial output, employment and exports in both countries. There are immense opportunities of cooperation and strategic alliances,” Scindia stated.

He added that there is also tremendous scope for co-operation and joint ventures between public sector undertakings of the two countries in the coal sector.

Scindia also expressed hope that the India-SACU Preferential Trade Agreement (PTA) will be concluded soon, which will give a considerable boost to India’s exports in the whole of southern Africa.


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