Airbus whistleblower's graft leak scuppered chopper deal?
New Delhi, May 12: Even as it is buffeted by bribery probes in several countries, aviation major Airbuss operation in India has flown into turbulence with reports of a whistleblower alleging graft in a chopper deal and the leak of sensitive classified information causing alarm in the government.
The Economic Times on Friday reported that Airbus Group has informed the Defence Ministry of an internal investigation into the allegations of the whistleblower over the tender for 14 twin-engine EC725 helicopters for the Indian Coast Guard. The deal is estimated to be worth Rs 2,000 crore.
According to the report, what has alarmed the government is that the whistleblower's letter making the allegation of graft had several highly classified documents attached to it.
When contacted, a senior Airbus Spokesperson said: "Airbus takes all whistleblower allegations very seriously and investigates such allegations thoroughly to ascertain any breach of its code of ethics and compliance. Airbus is fully dedicated to complying with its commitments and obligations under the Indian law."
He added: "Airbus will not comment on details of the press report concerning an Airbus Helicopter campaign."
Earlier, in February, Airbus had expressed that the commercial bid for the chopper deal that it had won, valid till February 15, had not been extended - and had therefore lapsed. Airbus had, however, refused to give any further details or the reasons behind the decision.
It is now being speculated that the whistleblower's allegation and the leak of documents, which first surfaced in December last year, may have been the reason for the non-extension of its commercial bid for the chopper deal.
According to the ET report, the anonymous letter sent to the Defence Ministry alleged that "benchmarking norms were changed and spare engine price calculations were hidden to favour Airbus and named three top coast guard officers as beneficiaries".
The report also alleged that "fugitive arms dealer Sanjay Bhandari and former business consultant Deepak Talwar, both of whom left the country after cases were registered against them by investigating agencies, acted as agents for Airbus".
The chopper deal was important for the Indian Coast Guard as it would have fulfilled its requirement for an advanced helicopter to step up its maritime surveillance so as to prevent a repeat of the Mumbai terror attacks of 2008.
Currently, the Coast Guard has aging Chetak helicopters and the Advanced Light Helicopter --Dhruv -- in its fleet.
While the Defence Ministry first began its conversation with Airbus almost six years back, the commercial bid for 14 of these medium lift helicopters was made in 2015, and Airbus had emerged as the lowest bidder.
The deal also involved offsets worth Rs 600 crore, and a maintenance, repair and overhaul (MRO) facility was to be set up in Goa.
"Airbus is engaged with the Indian Coast Guard and the Ministry of Defence to fulfil the need for 14 twin-engine heavy duty choppers following a campaign in which Airbus emerged as the lowest bidder by a very wide margin," the Airbus spokesperson told here.
Airbus's India troubles come at a time it is bracing for a difficult landing over corruption allegations in several countries. According to media reports, the company's woes are a result of its use of "commercial agents" - or intermediaries -- who specialise in "difficult" territories where they can assist multinationals in securing contracts.
Often characterised as consultancy, such work can be legitimate where it involves technical advice, such as regulatory best practice when bidding for a government contract. In other instances, it is nothing more than a euphemism for knowing who to bribe and for how much, a report in The Guardian newspaper said.
According to another media report, trouble for the group began in 2014, when an internal review of supplier payments at Airbus exposed irregularities. It ended up reporting itself to Britain's Serious Fraud Office and to France's equivalent body for lying to export-credit agencies about bribes given by third-party consultants to secure sales.
In October last year, Airbus said it may have violated American rules on arms exports because of fees paid to sales agents to secure deals. Austrian and German authorities are also investigating bribery claims tied to the sale of $2.1 bn-worth of Eurofighter jets back in 2003, the report said.
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Magnus Carlsen disqualified from top chess meet for violating dress code
New York (PTI): Five-time world champion Magnus Carlsen was first fined and then disqualified from the World Rapid and Blitz Chess Championship here for his refusal to comply with FIDE's dress code after turning up in jeans.
Defending champion Carlsen was fined USD 200 for wearing jeans, which are "explicitly prohibited" under tournament regulations and when he refused the request to change his attire immediately by chief arbiter Alex Holowczak, he was disqualified and was not paired for Round 9 of the Rapid championship taking place at Wall Street.
One of the game's greatest players, the Norwegian ace had agreed to follow the dress from the next day but was not ready to do it immediately, resulting in his disqualification.
In a statement, the game's global governing body FIDE emphasised that the dress code rules are well-communicated to all participants and designed to ensure professionalism.
"The dress code regulations are drafted by members of the FIDE Athletes Commission, which is composed of professional players and experts. These rules have been in place for years and are well-known to all participants and are communicated to them ahead of each event," FIDE said in the statement which was posted on 'X'.
"FIDE has also ensured that the players' accommodation is within a short walking distance from the playing venue, making adherence to the rules more convenient."
It added, "Today, Mr. Magnus Carlsen breached the dress code by wearing jeans, which are explicitly prohibited under long-standing regulations for this event. The Chief Arbiter informed Mr. Carlsen of the breach, issued a USD 200 fine, and requested that he change his attire.
"Unfortunately, Mr. Carlsen declined, and as a result, he was not paired for round nine. This decision was made impartially and applies equally to all players."
Earlier, Russian Grandmaster Ian Nepomniachtchi was also penalised for a similar violation but he complied by changing his attire, allowing him to continue in the event.
Meanwhile, "upset" with the turn of events, Carlsen said he won't participate in the Blitz section of the championship as he is "pretty tired" of FIDE's dress code policies.
"I am pretty tired of FIDE, so I want no more of this. I don't want anything to do with them. I am sorry to everyone at home, maybe it's a stupid principle, but I don't think it's any fun," Carlsen told Norwegian broadcasting channel NRK.
"I said I don't want to bother changing now, but I can change until tomorrow, that's fine. But they didn't want to compromise. I've reached a point where I am pretty upset with FIDE, so I didn't want to either. Then that's how it goes," he added.
