MoD Asks Indian Embassy to Probe Phalcon Dirt

Headlines Today Exclusive: Three days ago, the Ministry of Defence ordered its Defence Attache in Israel to investigate allegations that kickbacks to the tune of $25 million (Rs 100-odd crore) were paid to the NDA government as part of the $1.1 billion Phalcon AWACS deal signed in March 2004. The Indian Embassy has responded that there is prima facie evidence that the information is correct. The man you see in the photograph is Aharon Frankel — the man being investigated by Israel for playing middleman in the Phalcon deal with India and channelising the kickbacks into India. Headlines Today broke the story of his involvement this evening (the stories should run through Friday as well). The MoD has asked for a full report on the man and his dealings, and sources say the Indian Embassy will formally approach the Israeli government for a report any time now.

Cases involving former IAI CEO Moshe Keret were prematurely closed by Israel’s Attorney General, and a public cry has ensued to reopen the file — billions of dollars of Israeli taxpayers money could possibly have been radiated out of the country as crooked kickbacks. More tomorrow.

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