How transparent are some sectors?
The Israeli missile Barak missile has now finally cleared the procurement process in India, 5 years since it started. What was the reason fro the delay? Allegations of corruption ( http://www.firstpost.com/india/defence-ministry-clears-procurement-of-barak-missiles-1303271.html )
In this particular case there was no case to answer.
Indian defence procurement has had recent problems with allegations of corruption, the most notable of which has been the recent case of Finmeccanica resulting in the loss of a significant helicopter order $750m that could have led to a further order of $250m. Not only was the first order cancelled but subsequent investigations into the original deal resulted in the successful prosecution of the Finmeccanica CEO.
However, the Finmeccanica story is not the first, in fact it is someway down the list of previous defence procurement scandals within the Indian defence sector with cases stretching back over thirty years.
What is really in the article Wharton article ( http://knowledge.wharton.upenn.edu/article/whats-ailing-indias-defense-sector/ ) is not only the number of companies blacklisted and the drivers behind the corruption (size of the defence market and the lethargy in Indian government procurement) but the impact that the corruption and the bans is having on the customer - the Indian defence forces and potentially the ability of that country to not only project its power but defend its own borders.
In this particular case there was no case to answer.
Indian defence procurement has had recent problems with allegations of corruption, the most notable of which has been the recent case of Finmeccanica resulting in the loss of a significant helicopter order $750m that could have led to a further order of $250m. Not only was the first order cancelled but subsequent investigations into the original deal resulted in the successful prosecution of the Finmeccanica CEO.
However, the Finmeccanica story is not the first, in fact it is someway down the list of previous defence procurement scandals within the Indian defence sector with cases stretching back over thirty years.
What is really in the article Wharton article ( http://knowledge.wharton.upenn.edu/article/whats-ailing-indias-defense-sector/ ) is not only the number of companies blacklisted and the drivers behind the corruption (size of the defence market and the lethargy in Indian government procurement) but the impact that the corruption and the bans is having on the customer - the Indian defence forces and potentially the ability of that country to not only project its power but defend its own borders.
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