CBI to seek UK information in Embraer deal probe

The CBI is all set to send source query to the United Kingdom to gather details about certain individuals based there as part of its investigation into the alleged irregularities in the purchase of three Embraer aircraft for Defence Research and Development Organisation in 2008.

Sources said, “Preliminary investigation by the CBI has revealed that $5.5 million was allegedly paid as commission to a middleman based abroad, probably in the UK, in the purchase of three Embraer aircraft for DRDO. The agency wants to know details about the middleman and some private persons based there.”

The CBI is preparing to send source query to the UK in this regard, they added. Sources said the agency will soon be converting it into a regular case as enough prima facie material has been found.

The allegations of corruption surfaced in a Brazilian paper which alleged that Embraer took services of middlemen to clinch the deal of aircraft supply in Saudi Arabia and India.

According to defence procurement rules of India, middlemen are barred in such deals. Brazilian news paper ‘Folha de Sao Paulo’ had reported that Embraer allegedly paid commissions to a UK-based defence agent to finalise $208 million deal with India.

The DRDO had purchased three aircraft from the company in 2008 and customised them for serving its airborne early-warning and control systems or AWACS for the Indian Air Force. The newspaper had claimed that the US justice department was scrutinising the deal with India as it had been investing the firm since 2010 when a contract with the Dominican Republic raised suspicions, the report had said.