This Article is From Mar 29, 2012

Tatra denies any link to bribe offered to Army Chief

New Delhi: The revelation by the Army Chief, General VK Singh, of an offer of a 14-crore bribe has sharply brought into focus what was really at stake. The bribe was allegedly offered by a lobbyist for a truck supplier who flooded the Army for more than two decades with 7,000 over-priced vehicles which performed poorly when put to use. 

Tatra, a Czech manufacturer and the supplier of the trucks, today said that it never approached General VK Singh. It also maintained that it had never received any "complaints regarding the quality and performance of its trucks since 26 years."

In a press release, the company said, "Tatra collaborates solely with BEML in India and never sells directly to any other agency. As is evident from the record, Tatra has no direct contractual relation or privity of contract with the Indian army. Tatra supplies such trucks to the Indian defence public sector undertaking Bharat Earth Movers Limited (BEML) under license and hence Tatra has no reason or occasion to have to approach General V.K. Singh for approval of its trucks. Tatra does not require a selling agent or agency or any person for canvassing. We categorically state that Lt Gen Tejinder Singh has never been contacted for any purpose by Tatra and Tatra/ Vectra Group does not have any business or any relation with him." 

Incidentally, neither Tatra nor Lieutenant General Singh were named by the Army Chief when he went public with his allegations. Defence Minister AK Antony, though, said that General Singh had told him that the lobbyist was indeed Tejinder Singh who offered the bribe money. (Read: 14-crore rupee bribe offer recorded on tape: Sources)

The Army had, in a press release earlier this month, blamed Lieutenant General (Retd.) Tejinder Singh for offering bribes on behalf of Tatra and Vectra, which provides trucks to the Army.

Tatra all-weather all-terrain trucks are used to transport missiles, artillery and troops. These trucks are manufactured in the Czech Republic. The cost to the country has been huge. A 4x4 Tatra truck, for example, costs between Rs 40 to 50 lakhs in Europe. It was sold by BEML to the Army at nearly double that price. Ashok Leyland and Tata Motors supply similar trucks for 16-18 lakhs. Jacks for the Tatra truck, available in the market for Rs. 3000 for similar heavy vehicles, were bought for Rs. 30,000 each by BEML on behalf of the Army. (Read: RTI document on Army's purchase of over-priced trucks)

The top dollar paid for the trucks wasn't matched by performance. A whistleblower named Anil Bakshi reveals that the Army has, for a while, been unhappy with the performance of the Tatra trucks. Mr Bakshi was a defence contractor for the Indian Army and was contracted to prep vehicles for the Army's use after they had been bought. In 2009, he said that 45 Tatra trucks arrived with faulty or damaged tyres and old batteries. He refused to clear them for usage.

Other experts say that spare parts are not easily available for Tatra trucks. BEML takes upto two years to deliver spare parts.
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