Tehelka judge gives George an all-clean chit

This first volume of the commission’s three-part report was submitted to the NDA government in February last year. It has not been made public by the UPA government which, in October, wound up the commission—before the second and third parts could be submitted—and asked the CBI to step in. The agency, as of now, has five of these defence deals referred to it.

The Sunday Express has obtained the summary of Justice Phukan’s first 641-page report. According to this, Justice Phukan exonerated Fernandes on the basis of a probe conducted by a Special Investigating Team headed by now Delhi Police Commissioner K K Paul.

Here, in brief, is what the report says about the 15 deals:

• Image Intensifier Tubes
No violation of Defence Procurement Procedure (DPP), 1992. Fernandes had no role to play in the transaction and files were dealt with at ‘‘official level’’ only.

• Carl Gustav Rocket Launcher MK-III
No violation of DPP. Had not been acquired when Tehelka tapes were released. Nothing on record against Fernandes.

• Artillery Simulators
Procurement as per prescribed procedure ‘‘except relating to post-contract review.’’ No truth in allegations of corruption mentioned in Tehelka. Fernandes not involved in the transaction as files relating to procurement never went beyond Minister of State, Defence. Recommendation: an ‘‘in-house inquiry’’ to take action against ‘‘erring officials’’ responsible for ‘‘inordinate delay’’ in procurement. And for not conducting a ‘‘proper review of the contract implementation.’’

• Light Weight Binoculars
Procurement procedure complied with. Post-contract review not conducted. Tehelka conversation alleging corruption in this deal not based on truth. No involvement of Fernandes. Decision taken at the level of Additional Secretary, Ministry of Defence. Recommendation: take action against officers who allowed Weapons Directorate officials to participate in the Price Negotiating Committee meeting.

• Hand Held Thermal Imagers (HHTI)
1999 procedures followed in procurement from Israel. Lapses ‘‘committed’’ by officials for no post-contract review. Fernandes did not commit any illegality or irregularity in the transaction. Probe should fix accountability of officers.

• Krasnopol (Laser-guided ammunition)
The ammunition was procured keeping in view Army’s ‘‘urgent requirement’’ and it was ‘‘the only best ammunition available to India.’’ Fernandes has ‘‘not committed any irregularity or illegality in respect of the present transaction.’’

• T-90 tanks
No violation in procedure. Fernandes didn’t do anything contrary to the requirements, no illegality or irregularity. Recommendation: probe to find out how ‘‘price was fixed.’’

• Advanced Jet Trainer
Steps ‘‘not inconsistent’’ with prescribed procedures. Transaction not concluded at the time of constitution of Commission. Commission ‘‘takes a serious note’’ of delay in not procuring AJT even though the requirement of AJT was projected in 1982. No irregularity and/or illegality committed by Fernandes.

• Armoured Recovery Vehicle (ARV)
Allegations made in the sting operation ‘‘not only incorrect but also baseless.’’ No ‘‘evidence on record to substantiate allegations against George Fernandes.’’ Price Negotiation Committee meeting was attended by non-members. This violation of procedure made before Fernandes became Defence Minister. Recommendation: probe to take action against ‘‘persons in Army headquarters and Ministry of Defence’’ responsible for the lapses.

• Barak Anti-Missile System
Procurement procedures violated by Naval Headquarters without approval either from Defence Secretary or Defence Minister. Instead, Financial Advisor (Defence Services) said in 2000 that since specific approval of the Cabinet Committee of Security (CCS) was obtained for Barak, ‘‘aspects relating to deviations are not that relevant.’’ Defence Minister’s approval was not sought for advance payments (30 per cent of the contract amount). Barak, successful after fitment in INS GANGA, best available system. No illegality and/or irregularity committed by Fernandes.

• Upgrade of 130mm guns to 155mm guns
DPP violated by Army Headquarters with ‘‘non-members’’ attending the Price Negotiating Committee meetings. This fact was not brought to the notice of the Defence Secretary, Defence Minister or the CCS. No plausible explanation for six-year delay. Fernandes no way connected to lapses.

• Tank Navigation Systems
The offer of Bharat Electronics Limited dated Sept 7, 1991 as well as January 11, 1993 was not duly considered at the appropriate level. The file was never put up beyond the level of Joint Secretary (Ordnance). DPP violated by not conducting post-contract review. No illegality or irregularity committed by Fernandes.

• Kandla-Bhatinda Pipeline project
Fernandes not involved in any way, as Defence Minister in the transaction relating to Kandla-Bhatinda Pipeline.

• Kornet-E (terminally guided ammunition)
Feasibility studies not conducted. This not brought to notice of Defence Minister. Fernandes has not committed any illegality or irregularity.

• Sukhoi-30 MKI Aircraft (Contract dated November 30, 1996)
Price Negotiating Committee proceedings not available on record. $142.268 million paid as advance on April 4, 1996 with the approval of Cabinet but without there being any contract and even before the Cabinet approved the acquisition of aircraft. Regarding second contract (Dec 28, 2000), no illegality and/or irregularity is committed. No evidence against Fernandes.