Denel AMR scam: CBI team to visit SA

 A CBI team led by its chief will be visiting South Africa next week in connection with alleged irregularities in procurement of contracts for Denel for supply of Anti-Materiel Rifles (AMRs) during NDA government.

CBI sources said the Defence Ministry of South Africa had asked the agency to present its case before them so that judicial requests sent seeking information about the company could be furnished.

They said seeing the gravity of the case, CBI Director AP Singh accompanies with a DIG level officer would go to South Africa next week.

The CBI, in the year 2005, had booked unnamed officials of state-owned South African arms manufacturer Denel, its British agent and officials of Indian Defence Ministry to probe alleged corruption in arms purchase, they said.

The case relates to allegation of payment of 12.75 per cent commission to Varas Associates, based in the Isle of Man, in return for procurement of contracts for Denel for supply of Anti-Materiel Rifles (AMRs) in violation of prohibition of engagement of agents for arms purchases.

The Denel deal had triggered a political storm following allegation that the firm had paid money to Varas Associates to secure the Indian Army's contract for arms and ammunition.

The contracts related to July one, 1999 for procurement of 100 AMRs with 98,000 rounds of ammunition, March 20, 2002 for procurement of 100 AMRs with 1,00,000 rounds of ammunition and March 27, 2002 for procurement 100 AMRs with 100,000 rounds of ammunition.

After registering the case, CBI had sent Letters Rogatory to South Africa, Hong Kong and Isle of Man, whose administrative responsibility lay with the British Government, seeking more details about the company as well as the British intermediary which helped in clinching the deal but they did not materialise.