India’s biggest military equipment supplier, Rosoboronexport of Russia could have flouted Indian rules by using the services of a “middleman”, Rosoboronservice in a Rs 21-crore chopper engine deal with the Indian Navy.
The contract refers to the supply of four TV3-117 MAR engines for the Indian Navy Kamov KA-31 helicopters in 2011.
According to a report in the Indian Express newspaper, the Navy audit department dated July 30, 2012, alleges that the 2011 permit for the four TV3-117 MAR engines was “manipulated” while signing the contract between the Indian Navy and Rosoboronservice by resorting to High sea sales on contract basis.
Quoting documents, the report says that the Audit Unit in Mumbai informed the integrated headquarters of the following irregularities; The contract for helicopter engines was concluded on ‘High Sea Sales Basis’, which was in complete disregard of the provisions of the Defense Procurement Manual 2009 and General Finance Rules 2005 of the ministry of Finance.
It suspects of undue favor shown to Rosoboronservice by transferring the liability to pay all taxes, duties, insurance and clearance cost to the government.
According Defense Procurement Procedure (DPP) 2006 and Defense Procurement Manual (DPM 2006) report, allowing a middleman, Rosoboronservice to source helicopter engines from Rosoboronexport, Russia, violates the government’s direction of not dealing with agents or middlemen in defense procurement.
The entire procedure followed after government sanction appears to be non-bonafide since no procedure exists for procurement of goods and services on High sea sales basis in DPM 2009.
If it is proved that Rosoboronexport uses middlemen, according to Defense Procurement Procedure (DPP) 2006 and Defense Procurement Manual (DPM 2006), penalties could be imposed on it.
Rosoboronservice (India) is a joint venture between eight original equipment manufacturers (OEMs) of defense equipment from Russia and Krasny Marine Services Pvt Ltd of India. Of the 8 Russian, Rosoboronexport is the government canalizing agency. The others are manufacturers or designers.
Information posted on its website says, “Rosoboronservice (India) Ltd. is engaged in providing service support for all Russian origin military equipments fitted onboard ships & submarines of the Indian Navy as well as aircraft & helicopters in service with the Naval Aviation. We are also supplying yard materials of Russian origin to Defence shipyards. Presently we are in the process of extending our services to the Indian Air Force”.
Rosoboronexport plans to partner with defense companies from France and other countries for joint projects in the manufacture and sale of various military hardware. Talks are planned, including with French partners, “with whom Russia is implementing a large number of mutually advantageous joint projects, both in the interests of the Russian armed forces and the armed forces of third countries,” the Rosoboronexport press office said
Rosoboronexport will present modern Russian weapons and military equipment, special equipment, equipage and body armor a the 10th International Exhibition of Special Forces (SOFEX-2014), to be held from 6 to 8 May 2014 in Amman (Jordan).“The Hashemite Kingdom of Jordan pays special attention to security problems, special units operations, their equipage and equipping with modern technical and combat means
Russian arms export agency, Rosoboronexport has achieved sales worth $1 billion in Vietnam, Malaysia and Indonesia among others over the last few years. This is in contrast to American and European defense contractors who have secured fewer contracts than Rosoboronexport
Rosoboronexport will present its Malaysian partners with current and prospective projects which includes Mi-171Sh military transport helicopter at DSA 2014, 14 to 17 April. Rosoboronexport specialists believe that the Malaysian side will be very much interested in the Buk-M2E medium-range air defence missile system, Pantsir-S1 close-range air defence gun/missile system, Kornet-E/Kornet-EM and Metis-M1 antitank missile systems, as well as Mirazh, Sobol and Mangust patrol boats
Rosoboronexport today denied any loss of confidential data that was said to be the result of a targeted cyber attack a fortnight ago. A group calling itself the ‘Russian Cyber Command (RCC) took credit for the attack that reportedly resulted in the loss of hundreds of documents concerning Rosoboronexports dealings with India and other countries which import arms from Russia
The Indian embassys network systems in Moscow were hacked to launch a cyber attack on Russian arms exporting agency, Rosoboronexport, if a claim by group calling itself the ‘Russian Cyber Command (RCC) is to be believed. The attack was launched earlier this week to steal some 1000 documents concerning Rosoboronexports dealings with India and other countries which import arms from Russia
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Rosoboronexport, a subsidiary of the Rostec State Corporation, will present items of military equipment highly popular in armies, navies and air forces of African states at the Africa Aerospace and Defence 2014 exhibition in Pretoria, South Africa. "We come to this exhibition in the Republic of South Africa for the seventh time and consider it as the most important venue for the promotion of weapons and military equipment to the African continent, especially to sub-Saharan countries
Rosboronexport, Russias main weapons exporter supplied approximately $5.1 billion worth of military goods in the first half of 2014, according to Director General Anatoly Isaykin
Rosoboronexport could benefit from a growing demand for low priced arms despite the looming threat of US sanctions. The Obama administration has passed international sanctions against Kalashnikov, the Russian automatic weapons manufacturer but is yet to take a decision against Rosoboronexport which exports most of Russias ships, tanks, aircraft and other heavy weapons
Rosoboronexport will discuss projects on behalf of third countries with Belarusian partners during the 7th International Exhibition of Arms and Military Equipment, MILEX-2014, from 9 to 12 July in Belarus. It also plans to present a wide range of Russian military products
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