Denel violated laws by paying commission: Pranab

The government on Wednesday said there was evidence that the South African defence firm Denel had violated the country's laws on the payment of commissions in connection with a contract for anti-material rifles concluded in 2002.

The matter has been referred to the Central Bureau of Investigation for investigation and an FIR was filed by the agency against "unknown public servants" who were involved in the matter, Defence Minister Pranab Mukherjee said in a written reply in Rajya Sabha.

To another question whether a "black-listed firm got DRDO's super-sensitive contract", he replied in the affirmative and said the contract was finalised by Electronics Corporation of India, a public sector undertaking, with Shoghi Communication on February 28, 2005.

The defence ministry's advisory banning dealings with the firm was issued only on September 19, 2005, after the contract was concluded, he said. Mukherjee said no payment had been made to the firm and that dealings with it have ceased.

He said the defence ministry has also notified the procedure for selection of tier-1 Indian private industries that will be treated at par with state-run defence firms in terms of the provisions of the Defence Procurement Procedure of 2005.

Such private industries have been named the "Raksha Udyog Ratnas", Mukherjee said. He also informed the Rajya Sabha that the Women's Special Entry Schemes in the Army had been wound up and women officers would now be inducted through the Short Service Commission scheme.