While NEC Engineering Private Limited fends off allegations that it helped Iraq's weapons programme, a reliable source in the Indian company told rediff.com that one of the firm's directors is a friend of Iraqi President Saddam Hussain.

"President Saddam Hussain and NEC director Hansraj Shiv have known each other for more than 20 years now," he said.

"Shiv turned the relationship into a good business opportunity," the source claimed.

Shiv has not been seen in public after British intelligence alleged NEC had exported material that would help Iraq's missile programme, via Jordan.

According to British intelligence, NEC had, between September 1998 to February 2001, exported atomized aluminum powder and titanium centrifugal pumps worth nearly $800,000 to Jordan and Dubai, but these were actually meant for Iraq's controversial Fallujah II chlorine plant.

NEC's advocate R K Anand denied the allegations and accused the government of "succumbing to pressure from the US government."

"Why is this story, which is more than eight months old, suddenly becoming so important? Why is the US highlighting it now?" he told rediff.com

"The material NEC exported was verified and certified by Indian Customs. Do you want to say that Indian Customs officials were clandestinely involved in exporting material to Iraq in violation of UN resolutions?"

"It's a matter of regret that the government is keen on helping the US instead of defending an Indian exporter. NEC is a scapegoat as the US wants to attack Iraq. Such cases are highlighted in the media just before the weapons inspectors report is made public," Anand, a Congress MP, said.

"British and American intelligence have no proof whatsoever against NEC, nothing to show that the material exported to Jordan ended up in Iraq."

"The material my client is alleged to have exported to help make weapons is available in the open market and is also used for making cell phones, utensils and pumps to draw water. Why such a big fuss about it?" Anand asked.

When his attention was drawn to a report in The Sunday Express, in which N Katturajan, a former general manager (projects) at NEC, is quoted as having told Indian intelligence that he had visited Iraq and had been involved in rebuilding the chlorine plant at Fallujah near Baghdad, Anand dismissed the statement saying, "No evidence."

He also denied knowledge about Hansraj Shiv's alleged friendship with Saddam Hussain.