Monday, December 12, 2011

Defence Minister A.K. Antony ordered Probe into Controversial Rs. 500-crore Contract

Defence Minister A.K. Antony on 8 December 2011 ordered a probe into reports that a key military intelligence unit's imagery intelligence gathering and analysis equipment is below par. The probe was ordered based on a revelation that possible corruption in the procurement of Rs. 500-crore worth of equipment had compromised its ability to use satellite images of enemy troop movements and assets.


According to reports,  the Indian Army's imagery interpretation capabilities that are critical to provide information on enemy troops locations and military assets were compromised due to faulty procurement processes leading to critical software upgrades being denied to the unit by the contracted firm.


The Army's image-analysis capabilities, which allow it to cull information of military relevance from satellite images, were hit by a controversial 2008 contract. The contract relieved the supplier, Rolta, of its responsibility of providing periodic upgrades of the software — though the Army continued to pay crores of rupees to the company.
The reports of a leading daily also claimed that the Indian company was being contracted again for a Rs.165-crore order for supply of software for which it does not hold licenses anymore.


It was also established that the military officials involved in giving the contract to Rolta went on to work with the firm — raising fears of conflict of interest.

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