New Delhi – Even as the Central Bureau of Investigation (CBI) has written to the Ministry of Defence to seek a detailed information of the Tatra truck deal meant for the Indian Army, it has also summoned Ravi Rishi, the Chairman of the London-based Vectra Group and the largest shareholder of Tatra trucks.“We got into trucks the year Czechoslovakia was divided into Slovakia and Czech Republic – in 1993,” says the man who has never lived in East Europe. “You have great incentives in going there, but not in living there.” He guffaws and then settles for a bland smile.
Vectra owns 100% of Tatra Slovakia and nearly 66% of Tatra Czech Republic, claims he. “The undercarriage [for Tatra trucks] is made in Slovakia. Engines, cabin etc are made in the Czech Republic,” he says of the vehicle that is in the eye of a storm in India.
“We sell Tatra trucks to 58 countries and 38 armies and they include the US, Russia, Israel, Brazil, UAE and others,” Rishi says. Interestingly, on Tatra Czech Republic’s website, Rishi finds mention only as a member of its supervisory board.” http://articles.economictimes.indiatimes.com/2012-04-01/news/31267007_1_tatra-trucks-vectra-group-army-chief-vk-singh
India is questioning the quality of the Tatra trucks
A joint team of the Ministry of Defence and CBI, which recently visited the defence PSU, BEML, at four locations near Bangalore, has found that an “obsolete technology” was being used for manufacturing Tatra trucks.
The four-member team visited BEML plants at Bangalore, Mysore, Kolar Gold Fields and Palakkad.
The joint team included three colonel-level officers from Defence Procurement and Wartime Equipment, MoD. The team will shortly submit a detailed report.
Sources said the indigenisation target of Tatra trucks, as agreed upon in the documents signed in 1987, 1997 and 2003, have not been met so far. According to the contracts signed by BEML with Tatra Sipox, it was agreed upon that more than 80 per cent of indigenisation of the trucks should have been completed before 2003. It has been learnt that the cabin, backbone tube and half swing axle being used in the trucks are still being imported. The axle and backbone are being supplied by Slovakia and the cabin by Czech Republic. “According to terms of agreement, Tatra Siphox, UK, is responsible for procurement of these items which form nearly 60 per cent of the trucks being supplied to the Army,” said a senior official.
The technology used in these trucks is ‘obsolete’, and when the BEML signed a new agreement in 2003, they agreed for a 10-year-old expertise, said sources. The 2003 agreement was signed after BEML CMD V R S Natarajan took over the company.
The team also examined some BEML officials at different plants to understand the transfer of technology. The agency has learnt that transfer of technology was part of the original agreement between BEML and Czech company Tatra, the original equipment manufacturer (OEM) for supply of the trucks, in 1986. However, Natarajan signed the new contract and is alleged to have misled the defence PSU into signing a fresh agreement in 2003 with UK-based Tatra Sipox, an intermediary firm and not an OEM.
Part of India’s investigation and Tatra’s ownership questions will be a visit to Koprivnice.
The CBI is planning to approach Czech-based Tatra a.s to ascertain the reasons for supplying older technology based all-terrain vehicles to BEML even though it has better versions available.
Although the CBI has decided to send the query through Letters Rogatory (Letters of Request), the agency is also planning to send a team to Czech Republic to meet the executives of the company in this regard, sources in the agency said.
This is the first time the CBI will be approaching Original Equipment Manufacturer Tatra a.s in connection with the all terrain vehicle supply case even as it had questioned Vectra Chairman Ravinder Rishi and BEML officials repeatedly.
The CBI sources said no irregularity has surfaced on the part of Tatra a.s so far and neither the company is an accused in the case so there are no reasons to not cooperate in the probe.
The sources said despite clause of indigenisation and upgradation of technology in the original agreement signed with Tatra a.s, the indigenisation process remained way behind satisfactory levels.
They said the trucks which are now assembled by BEML and supplied to Indian Army have not performed well in higher altitude and despite red flags raised by Army several times, the PSU continued supplying older technology vehicles.
CBI sources said DRDO also procured vehicles from Tatra for its missile systems which fared much better than those procured by the Army through BEML.
The agency is probing alleged irregularities in assigning supply from the Czechoslovakia-based Tatra, with which the agreement was originally signed in 1986, to the Tatra-Sipox UK owned by Rishi in 1997 showing it as Original Equipment Manufacturer and the fully-owned subsidiary of the Czech company which was against rules, they said.
http://www.dnaindia.com/india/report_cbi-likely-to-approach-czech-based-tatra_1698043