India Seizes $70M from IMI (INN) ISRAEL NATIONAL NEWS) By Gabe Kahn 04/17/12)
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India´s Ministry of Defense seized a $70 million bank guarantee from
Israel Military Industries this week.
The move marks the first time India´s Defense Ministry has "fined" a
defense contractor for an alleged breach of an "integrity agreement"
related to an arms contract.
The Indian Ministry of Defense said, "It is the first case in which
the integrity pact was brought in vogue and the bank guarantee given
by the Israeli Military Industry was encashed for their involvement
in corruption related cases."
"The bank guarantee amounting to Rupee 224 crore has been encashed by
the Ordnance Factory Board," it explained.
A so-called integrity pact for foreign companies bars them from
entering into in any corrupt activity, ranging from hiring middlemen
or influencing government officials and processes.
In March, IMI and five other firms – three foreign and two domestic –
were blacklisted for ten years in the fallout of a scandal involving
India´s Director General of Ordnance Factories, Sudipta Ghosh.
Ghosh was indicted by India´s Central Bureau of Investigation for his
alleged role in several "defense scams."
A statement following the ban by Israel´s defense ministry in March
said IMI had "very good claims" against the Indian allegations.
Neither the defense ministry nor IMI have responded to the seizure of
the bank guarantee thus far. (IsraelNationalNews © 2012 04/17/12)
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