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7 mars 2012 3 07 /03 /mars /2012 13:14

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6/3/2012 Arie Egozi - israeldefense.com

 

India’s announcement comes after suspicion over IMI’s alleged involvement in bribery. India’s Ministry of Defense blacklisted five other companies as well

 

The decision of the Indian Defense Ministry to add Israel Military Industries (IMI) to the blacklist of companies unable to carry out transactions with India for ten years is grave, and not only from IMI’s perspective.

 

According to well-informed sources in Israel, IMI’s business in India has been limited in recent years, but this new decision could empower India’s opposition that opposes the close defense relationship between Israel and India. However, sources state that the damage will primarily affect future potential deals for IMI in India.

 

“There will be relatively little harm, as India is not exactly looking for IMI's products at the moment," one source said. “There might be noise coming from the direction of politicians, but the actual damage will be minimal."

 

India’s Ministry of Defense imposed a ban on six companies from presenting proposals for defense tenders in the country for 10 years. The decision was announced three years after the names of the six companies were tied to corruption accusations.

 

In 2009, India’s Ministry of defense decided to freeze operations with seven companies that sold defense equipment to India, including IMI. The decision was made due to suspicion of corruption involving a former senior Indian official that was responsible for contacts with foreign industries.

 

In response, IMI’s spokesperson stated that the company has and continues to operate lawfully. “The company has not received any announcement concerning the publication of this topic. IMI continues and will continue to operate vis-à-vis the Indian government towards settling this matter, and we cannot respond beyond that.”

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