Author: J. Venkatesan
Publication: The Hindu
Date: November 16, 2002
URL: http://www.hinduonnet.com/thehindu/2002/11/16/stories/2002111604641200.htm
The CBI court here has held that
there was a secret design by the former Prime Minister, the late Rajiv
Gandhi, and the former Defence Secretary, S.K. Bhatnagar (since deceased),
to ensure that the AB Bofors company was awarded the Bofors gun deal by
abusing their official position.
The Special Judge, Prem Kumar, held
that the Bofors company had used corrupt or illegal means or by abuse of
office by public servants, S.K. Bhatnagar, former Defence Secretary and
Chairman of the Negotiating Committee, Rajiv Gandhi (he was included as
an accused not sent up for trial), to obtain the contract.
The judge was severe on Rajiv Gandhi
by observing that his post-contract conduct showed that a massive cover-up
operation had been launched. He said it was a unique case involving serious
allegations of abuse of positions by high public servants in a deal having
international ramifications.
The judge was of the view that the
object of the Joint Parliamentary Committee (which probed the matter) seemed
to be to quell the political storm at that time and not to arrive at the
whole truth. Rather, the constitution of the JPC and the manner in which
the inquiry was conducted and its report seemed to be part of a massive
cover-up exercise after the exposure of the scam by the media.
He said the Bofors scandal was a
case of deep-rooted conspiracy and political pay-offs and bristled with
all manner of complexities and complications. He referred to the statement
made by Rajiv Gandhi in the Lok Sabha that there were no middlemen in the
deal, that if anyone gave the Government any evidence it would take stern
action and that nobody would be allowed to go scot-free. But Rajiv pretended
to be a maverick and did not show any sincerity to find out the truth,
the judge said.
Regarding the role played by AB
Bofors, he said that it had entered into a criminal conspiracy along with
the other accused to obtain the contract by illegal means, by deceiving
the Government of India by fraudulent representation about the price and
quality of the said guns and gun system that they were superior and cheaper
than `Sofma' and that no agent/middlemen would be used in the negotiations.
After obtaining the contract, AB
Bofors had paid a commission of SEK 50.46 millions to Ottavio Quattrocchi
through AE Services Ltd; SEK 192.15 millions in the name of Svenska Inc,
Panama and SEK 80.79 millions to Hinduja brothers through Mc Intyre Corporations
three accounts through Hanover Trust, Yew York, Geneva; SEK 31.98 millions
through Swiss Bank Corporation, Geneva and SEK 11.77 millions through Credit
Suisse, Geneva and thereby to cheat the Government of India by corrupt
or illegal means or by abuse of official position by public servants, S.K.
Bhatnagar and Rajiv Gandhi to award the aforesaid contract.
The judge also noted that around
May 1987 AB Bofors had made false/forged document between it and Svenska
Inc dated January 2/13, 1986 mentioning therein about the payment of commission
on the award of contract for sales related to the Bofors gun deal by ante-dating
the agreement knowing well that the contract had already been granted.
Thereby, AB Bofors had enabled Svenska Inc to claim commission knowing
well that such commission was not payable as no agent was to be engaged
in the deal.
The judge noted that the company
did so with the intent to cause damage or injury to the Government of India
to the extent of commission payable therein. The company and the Hinduja
brothers had committed various offences under the IPC Sec. 120 B (conspiracy),
420 (cheating), Sec. 464 read with 465 and Sec. 5 (1) (d) (misconduct by
public servant) and 5 (2) (providing for punishment) of the Prevention
of Corruption Act, 1947 (corresponding to 13 (1) (d) read with 13 (2) in
the 1988 Act), the judge held.
