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Arms scam: Barak makers deny charges

October 11, 2006 20:30 IST

The Israeli company that sold the Barak missile systems to India has denied that kickbacks were paid to clinch the Rs 1,150-crore deal and said it will cooperate in the probe into alleged corruption.

"It never happened, and we will cooperate as much as possible," a senior Israel Aircraft Industries official was quoted as saying by the business daily Globes.

The Central Bureau of Investigation had on Tuesday had registered a case against former defence minister George Fernandes, former navy chief Admiral Sushil Kumar and others regarding corruption in the deal to sell seven Barak anti-missile systems in 2000. The Barak system is made by state-run IAI.

The report in Globes said Israel's Ministry of Defence director general Maj Gen Gabi Ashkenazi had obtained a full report on the investigation in India.

'This is an internal investigation in India, and I do not think IAI will have a problem,' a senior defence official was quoted as saying.

'Israel's defence establishment stresses that there is no evidence or allegations against IAI, and that the suspicions are being levelled against former senior Indian defence officials,' the report said.

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