Barak Missile Deal Scandal
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The Barak Missile Deal Scandal pertains to an ongoing investigation by Indian authorities of allegations of corruption in the purchase of Barak Missile Systems by India from Israel. The Barak missile system (jointly developed by IAI and RAFAEL) employs vertically launched missiles to counter anti-ship sea-skimming missiles and attacks by aircraft. On October 23, 2000, contracts had been signed by the Indian government to procure seven Barak systems at a total cost $199.50 millions and 200 missiles at a cost of $69.13 millions. This was done although doubts had been expressed by a previous government for the need of the defence system.
In 2001 a sting operation conducted by tehelka.com, alleged that 15 defence deals made by the government had involved some sort of kickback and the Barak deal was one of them. The NDA government set up a commission to investigate the matter. The UPA government, currently in power, has rejected the part-report by the commission and the whole matter is now being investigated by the Central Bureau of Investigation (CBI).
The CBI lodged an First Information Report (FIR) on October 9, 2006 and claims that George Fernandes the Indian defence minister at that time, and the Former Chief of the Indian Navy, Admiral Sushil Kumar were involved. The FIR notes that the Indian Defence Research & Development Organization had sought to block the import of the Barak system right until the end. It claims that of the total amount paid by the government, 3 per cent went to George Fernandes and Jaya Jaitley, Fernandes' colleague in the then existing Samata Party.
Due to the scandal which emanated when the allegations first surfaced, George Fernandes had to resign his post as the defence minister, although he was later reinstated.
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