Prashant Bhushan accuses BJP of sham AgustaWestland deal

Swaraj Abhiyan claims the BJP-led government in Chhattisgarh has its own helicopter scam.

WrittenBy:Amit Bhardwaj
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At a press conference yesterday, Swaraj Abhiyan leaders Yogendra Yadav and Prashant Bhushan claimed that “commission” in the name of premiums were paid in another AgustaWestland helicopter deal that took place in 2007, and to Bharatiya Janata Party leaders. They claimed a “global tender” was floated by the Bharatiya Janata Party led-Chhattisgarh government in May 2007, to acquire AgustaWestland 109 Power E Helicopters. Swaraj Abhiyan released documents that claim three bids were received in response to the tender: one from Agusta itself, one from Sharp Ocean (Agusta’s subsidiary based in Hong Kong) and one from OSS (Agusta’s maintenance service provider in India). The highest bid was made by OSS and lowest by the Sharp Ocean.

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“It was pretended that the (state) government floated a global tender, while it was (specifically) written in the tender which model was to be purchased,” alleged Bhushan. “And the bids interestingly were received from AgustaWestland, its commission agent and its service provider itself.” Bhushan claimed at least 10 other firms could have supplied the helicopters at a much cheaper rate.

On the basis of the response, the state government decided to purchase the helicopter from Sharp Ocean at USD 6.57 Million. The invoice later showed that the cost of the helicopter was USD 5.1 Million and USD 1.57 million was commission, payable to Sharp Ocean. Not only were all the bids by AgustaWestland and companies associated with it, Swaraj Abhiyan claimed that six months later, an entity was opened in British Virginia Islands in name of one Abhishak Singh.

Incidentally, Chhattisgarh Chief Minister Raman Singh’s son’s name is Abhishek Singh. The address of the Abhishak Singh who has the BVI account is similar to Chief Minister Raman Singh’s house. Bhushan and Yadav demanded an inquiry in the matter and asked whether kickbacks were paid to this “Abhishak Singh”.

According to Swaraj Abhiyan, on December 19, 2006, the Department of Civil Aviation prepared a note about the need of “new VIP Helicopter since the earlier ones were requiring lot of maintenance.” The Department proposed inquiries should be made from various helicopter-manufacturing companies. Yadav said OSS made a presentation to Chhattisgarh government about the Agusta 109 helicopter within three days of the note being shared. Thereafter, OSS made an offer to supply this helicopter at USD 6.31 Million. After some correspondence, the manufacturer said that in case of direct procurement, Chhattisgarh will have to wait for two years and suggested the government to deal with its distributor Sharp Ocean who may be able to supply a pre-sold helicopter earlier.

Sharp Ocean quoted a price of USD 6.31 million, which supposedly includes a commission of USD 200,000 payable to Sharp Ocean for arranging this pre-sold helicopter. Yadav claimed that in order to avoid this commission, the Chhattisgarh government floated a global tender and ended up paying more than the earlier quotation made by the Agusta subsidiary.

Yadav said to Newslaundry, “We have presented enough documented proofs and more than what they [the BJP] have against the Congress Party.” When asked if the Congress Party, both at the Centre and State, wasn’t trying to save its own face, Yadav responded with, “What is the Congress doing? It [ these discrepancies in the 2007 Agusta deal] was raised in the CAG report of 2011.  Why were they keeping silent?” He demanded an inquiry by an independent agency. Bhushan added, “BJP is at the Centre. CBI and the ED (Enforcement Directorate) have become a political tool…The matter should be investigated by a former Chief Justice of the Supreme Court.”

The author can be contacted on Twitter @amit_bhardwaz

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