NEW DELHI, 9 May — India’s Defense Minister George Fernandes came under a fresh cloud yesterday after a newspaper reported that his ministry paid twice as much to buy coffins for its soldiers as the US does.
While the US defense procurers pay $1,200 for each aluminum casket, the Indian Defense Ministry paid a unit price of $2,500 when it purchased the same caskets 1999, The Times of India said.
This is contrary to Fernandes’ claim that $2,500 was the right price for each casket bought by New Delhi at the time of a border conflict with Pakistan-backed intruders in Jammu and Kashmir three years ago.
Fernandes made the claim in December after the Indian Comptroller and Auditor General (CAG) severely criticized the deal for being overpriced. This prompted a full-blown political scandal that rocked Parliament for days.
The Times report said the Defense Supplies Center, Philadelphia (DSCP), a US defense procurement agency, buys aluminum caskets with identical specifications for around $1,200. The DSCP told the Times that if the Indian buyers approached the suppliers directly, they would be quoted a price of around $1,200 per casket.
"The price that these manufacturers charge is, of course, related to the quantity being bought," DSCP official Tom Sidor told the Times. He said the center bought 34-78 coffins in the price range of $1,159-1,328. "The last award we made for this item was on Oct. 19, 2001, for a quantity of 70. The unit price for that order was $1,250.00," Gregg Tatarka, contract specialist at DSCP said.
On the other hand, the Indian Defense Ministry bought 500 caskets at the price of $2,500 each, paying an additional $500 per casket for transport, while approving "urgent" purchase of aluminum caskets to transport soldiers’ bodies.
Two ministry officials awarded a contract to Texas-based Buitron & Baiza, accepting the quoted price of $2,500 per casket, the paper said. One of them was implicated in March 2000 in another defense corruption scandal after being caught on video accepting bribes from reporters masquerading as arms sellers.
The first consignment of 150 caskets reached India in March 2000 but was rejected for being overweight. But the later ones were accepted.
Meanwhile, Fernandes yesterday said an alleged corruption scandal involving his ministry that was exposed by a news website last year was a "sham".
Giving evidence before a commission of inquiry on the infamous "Tehelka scam," the minister said the portal www.tehelka.com had "malafide and not noble" intentions.
