IMI one of six firms blacklisted by India

Indian Defense Ministry says it has incriminating evidence the six companies used improper methods to win contracts.

By
March 6, 2012 20:36
IMI-manufactured Uzi sub-machinegun

IMI manufactured Uzi sub-machinegun 390 (R). (photo credit: Reuters)

 
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Despite growing defense ties between India and Israel, New Delhi announced that a major Israeli defense exporter, Israel Military Industries Ltd., will be blacklisted for a decade due to allegations of its involvement in a bribery scandal.

IMI was joined on the blacklist by Singapore’s Technologies Kinetics Ltd., Switzerland’s Rheinmetall Air Defense and Russia’s Corporation Defense as well as two Indian defense firms, the AsiaOne news site reported on Tuesday.

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India’s Defense Ministry said law enforcement agencies collected incriminating evidence of corruption among all six companies.

IMI, a government-owned company, is the IDF’s main manufacturer of defense platforms for land, sea and air forces, and has several international clients.

Sources from the company told Globes that India’s decision was a serious financial blow that could remove it from one of the world’s most profitable defense markets.

India’s Central Bureau of Investigation accused all six companies of using improper methods to promote their chances of winning contracts.

The Finance Ministry is considering the option of privatizing IMI, and will examine the effect of the Indian blacklisting on future plans for the company, Globes added.

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