Ukraine deal scam | India hits back at Ukraine on allegations kickbacks scam

Ministry of Defense is entangled in allegations of kickbacks in a defense deal with a Ukrainian state-run company. This is the second time that the government is under question over a defense deal-the previous one being the Rafale Deal.

The incident came to light after Ukraine corresponded to India and sought the latter’s help to investigate kickbacks worth $2.6 million, which was paid to a marketing firm in an agreement between Spetstechnoexport, a state owned company in Ukraine and the Indian ministry of defense. The deal is related to the purchases of IAF’s AN-32 transport planes’ spares, which was signed on 26 November 2014.

According to reports, anti-corruption authorities from Ukraine have sent a request to Defense Ministry for assistance as it suspects involvement of Indian defense ministry officials. Sent on February 13, the request seeks identification of all the officials who were a part of the negotiations of the contract.

It is alleged that Spetstechnoexport signed a contract with a marketing firm named Global Marketing SP to provide services related to the implementation of the November 2014 contract. However, $2.6 Million were transferred to the marketing firm even before the contract was completely executed.

When asked for comments, the Ministry of defense rejected the allegations and called the reports ‘misleading’. It further stated that Embassy of Ukraine in India sent a request to home ministry and external affairs ministry seeking only legal assistance in the probe of a criminal case against Ukraine government officials.

Congress has questioned government as to how can the ministry of defense sign a statement of completion when the terms of the contract were not fulfilled? It should be noted that it was this statement of completion, which facilitated the alleged illegal gratification. Congress is adamant that the govt can’t sweep it under the carpet as it did with the Rafale deal.