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Exclusive! Defence sources slam auditor's report on AW101 deal

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21 August 2013 - 10:14 by  Neelam Mathews  in New Delhi Indian Ministry of Defence (MoD) sources have criticised the findings of the Comptroller and Auditor General ( CAG ), claiming the auditor’s report into the controversial  AW101 VVIP helicopter  deal failed to comprehend basic facts. The  CAG  presented its  report  to the Indian Parliament on August 13, highlighting the government’s failure to follow procedures in awarding the contract to AgustaWestland for 12 AW101s in 2010. The deal is also under scrutiny in Italian courts due to alleged bribes paid to officials in India. The bid for VVIP helicopters was first released in 2002 for the Indian Air Force (IAF) to replace its aging Mi-8 helicopters. After the  EC225  emerged as the only candidate, the contract was rebid in 2006. The  CAG  report claimed the subsequent process saw laxity in decision making and a number of discrepancies. ‘From the framin...

AERO INDIA LIVE! Auditor Seeks Efficiency In Indian Procurement Policy

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AIN NEWS LIVE FROM AEROINDIA  »  2013 by    NEELAM MATHEWS Publication of India's new Defense Procurement Policy has been delayed as a government auditor pushes for more efficiency in the process, including a greater role for the private sector. (Photo: Rakesh Mangaraj, Indian Mod) February 4, 2013, 2:55 PM India’s updated Defense Procurement Policy ( DPP ) for 2013 that was to be released in January is delayed by five or six months, a senior defense ministry official told  AIN . The DPP  governs the buying of military weapons and equipment. Recently, the country’s Comptroller Auditor General stated that the previous  DPP  2011 is not geared for efficient procurement. “The MoD [ministry of defense] needs to factor this into the  DPP  2013 to ensure greater efficiency in acquisition and eliminate discrimination between the private and public sector enterprises,” said an industry analyst with think-tan...

Will the CAG report on Air India be tabled in Parliament?

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Neelam Mathews Aug 21, 2011 The Comptroller and Auditor General (CAG) has completed its audit on Air India which is to be tabled in Parliament. Given its present crisis, there are some doubts being expressed whether the government responsible for scheduling, will table it in this session. The CAG report includes the purchase of 111 aircraft for over Rs 40,000 crore in 2006. It indicates losses resulted from a   wrong purchase plans, inflated loans and delay in the return of leased aircraft. In its report, the CAG has concluded that “capacity expansion by both the erstwhile airlines (Indian Airlines and Air India) without adequate due diligence by either the companies or the ministry as to requirement and imprudent project financing has put the merged entity into acute financial stress,” writes DNA. While CAG has examined Air India’s operations from 2005-2010, the draft CAG report does not mention then civil aviation minister Praful Patel. Sources says it could be likel...