Embraer deal: About $5.5 mn paid as kickbacks to a middleman based abroad, claim CBI sources

By: | Updated: September 28, 2016 8:49 PM

About $5.5 million was paid as kickbacks in Embraer deal to a middleman based abroad, PTI reported quoting Central Bureau of Investigation (CBI) sources.

About .5 million was paid as kickbacks in Embraer deal to a middleman based abroad, PTI reported quoting Central Bureau of Investigation (CBI) sources. (Reuters)About .5 million was paid as kickbacks in Embraer deal to a middleman based abroad, PTI reported quoting Central Bureau of Investigation (CBI) sources. (Reuters)

About $5.5 million was paid as kickbacks in Embraer deal to a middleman based abroad, PTI reported quoting Central Bureau of Investigation (CBI) sources. Sources said that the CBI is now conducting a probe with foreign law enforcement agencies to ascertain the details of payment. Defence Minister Manohar Parrikar had sought a report from DRDO following which the matter was referred to CBI. Allegations of corruption in the deal surfaced in a Brazilian paper which alleged the Embraer had taken the services of middlemen to clinch the deal of aircraft supply in Saudi Arabia and India. Brazilian news paper ‘Folha de Sao Paulo’ had reported earlier this month that Embraer allegedly paid commissions to a UK-based defence agent to finalise 208 million USD deal with India. Defence procurement rules in India bar any middlemen in such deals.

DRDO had purchased three aircraft from the company in 2008 and customised them for serving are air-borne radar system known as airborne early-warning and control systems or AWACS for the Indian Air Force. The newspaper had claimed that US Justice department was scrutinising Embraer’s deal with India. The company has been under investigation by the US Justice Department since 2010 when a contract with the Dominican Republic raised the Americans’ suspicions, it said.

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