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Defence Ministry in war of words with financial watchdog
News Behind The News
 
April 08, 2002

A war of words has broken out between the Defence Ministry and India’s top financial watchdog, which has raised objections to several multi-million dollar defence deals.

The Defence Ministry has described media reports based on the findings of the Comptroller and Auditor General (CAG) as “one sided,” and questioned the basis of the watchdog’s findings.

Differences cropped up between the CAG, which audits all defence deals, and Defence Minister George Fernandes last year when the watchdog objected to the purchase of what it said were over-priced aluminium caskets to transport soldiers killed in 1999 during the Kargil border conflict with Pakistan.

Over the past few days, the Defence Ministry has reacted strongly to such objections raised by the CAG.

The Ministry last week mounted a strong defence for its decision to purchase 100 Igla short-range surface-to-air missiles for the Navy in 1999, saying they were needed to defend warships from aerial threats like enemy aircraft and anti-ship missiles.

The CAG contended that the purchase of Igla missiles was unnecessary as the Navy had adequate stocks of the similar Strela anti-aircraft missiles. The purchase was made during the Kargil border conflict with Pakistan, when the Indian Navy was mobilised to put pressure on Pakistani shipping in the Indian Ocean.

The Defence Ministry had on Tuesday defended its acquisition of nine Russian Ka-31 surveillance helicopters after the CAG criticised the $200 million deal, saying the aircraft were “unproven” and equipped with outdated radars. A Defence Ministry spokesman said the Navy purchased the Igla missiles as the life of the Strella missiles had “expired.”









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