Tuesday, July 18, 2017

DCNS's Philippe Japiot charged with corruption, spent much time in Australia before the award of the Australian AUD 50 Billion contract

by Ganesh Sahathevan

DCNS's  Philippe Japiot spent much time in Australia before the award of the Australian AUD 50 Billion contract to DCNS. He has just been charged  with corruption in the matter of  the DCNS Malaysian submarine contract. 

The Australian DCNS deal raises a number of issues.These include a number that have been published on this blog:

Doing business with the corruption prone DCNS-Australian Defence Minister's boyfriend "tried" to meet with DCNS in France last week



Tuesday, July 18, 2017

DCNS executives indicted for corruption in the sale of DCNS submarines to Malaysia-Meanwhile DCNS Australian AUD 50 Billion contract remains beyond scrutiny

by Ganesh Sahathevan

As reported by AFP:

France indicts 2 former bosses in Malaysia submarine graft case

The two are Philippe Japiot, former chairman of the French naval dockyards unit DCNI, and Jean-Paul Perrier, former chief executive of the French defence and electronics giant Thales.

PARIS: French investigators have indicted two former top executives in a long-running probe into alleged kickbacks from the 2002 sale of submarines to Malaysia, sources close to the inquiry said on Tuesday (Jul 18).

The two are Philippe Japiot, former chairman of the French naval dockyards unit DCNI, and Jean-Paul Perrier, former chief executive of the French defence and electronics giant Thales, they said.

The two, interviewed in May, have both been indicted for corruption, one of the sources said.

Japiot has additionally been indicted for "abuse of social assets" and Perrier for "complicity in the abuse of social assets," one of the sources said.

The investigation was launched in 2010 in response to a complaint by Malaysian rights group Suaram.

It centres on allegations that the French submarine manufacturer paid commission of more than €114 million (US$132 million) to a purported shell company linked to Abdul Razak Baginda, a former close associate of Prime Minister Najib Razak.

Najib was defence minister when the US$1.1-billion deal for two Scorpene-class submarines was sealed.

From 2001 to 2007, Japiot headed the DCNI, the international branch of France's centuries-old naval shipbuilding operations, which changed its name last month from DCNS to Naval Group.

The French state holds just under two-thirds of Naval Group, and Thales slightly more than a third.

Two other people are under investigation in France in the same case: Dominique Castellan, also a former DCNI president, and Bernard Baiocco, former president of Thales International Asia.

All four deny any wrongdoing and the Malaysian government has said the contract was free of corruption.

The affair emerged spectacularly in 2006, when Abdul Razak's Mongolian mistress - who was said to have demanded a payoff for working as a language translator in the deal - was shot dead and her body blown up with plastic explosives near Kuala Lumpur.

A Malaysian court later cleared Abdul Razak of abetting the murder, sparking an outcry and opposition allegations of a cover-up.

Source: AFP/de


Thursday, April 20, 2017

DCNS's l'affaire Adelaide takes shape: A horse, Defence Minister Marise Payne,and Lockheed Martin

by Ganesh Sahathevan

Image result for marise payne dcns
French Defence Minister Jean-Yves Le Drian (right) and Australian Defence Minister Marise Payne 

This writer has previously noted that DCNS's AUD 50 Billion submarine contract entered into with the Government of Australia seems not terribly different from other scandals the company has gotten into, including the the so-called l'affaire Karachi.

Now it seems the Defence Minister Marise Payne's love of race horses may provide some further clues.The Australian newspaper reported this morning :

Defence Minister Marise Payne co-owns a racehorse with a lobbyist whose company represents firms seeking lucrative Australian military contracts, including the Future Frigate project worth up to $35 billion.
Senator Payne is a co-owner of Tarakona, a largely unsuccessful four-year-old gelding, with a group that includes Matt Hingerty, managing director and chief executive of lobbying firm Barton Deakin.

Barton Deakin is recorded on the federal government lobbyist register as representing defence contractors, including Lockheed Martin Overseas Group, builder of the F-35 Strike Fighter; and Fincantieri SpA, the Italian shipbuilding company.

Not reported is the fact that Lockheed Martin Corp " won a bid to design and build the combat system " for the DCNS Barracuda submarines".

That contract is far ranging ,According to a DefenseNews report published on 18 April 2017:

Lockheed Martin will report this summer results of studies for potential suppliers of sonar and other critical systems for Australia’s planned fleet of 12 new attack submarines, said Mike Oliver, program director for the future submarine combat system.

“Lockheed Martin has been conducting trade studies in a number of key areas of the submarine’s design,” he told Defense News. “We are examining all options and will deliver the results of those trade studies in June to the customer.”

Sonar is among the key systems, the company’s program team said.
“The choice of sonar systems and arrays is in the hands of Lockheed Martin,” Marie-Pierre de Bailliencourt, general manager at DCNS, told Defense News..

Canberra in September selected Lockheed as combat system integrator, partnering with DCNS, which will design, build and service a fleet of 12 ocean-going diesel-electric boats. The program is worth AUS$50 billion ($38.1 billion) over some 35 years.

A survey of sonar and other systems marks a first step in a selection process that Thales hopes to win through its Australian subsidiary.

The French electronics company expects to secure more than €1 billion of deals, with €100 million per boat based on sonar systems, electronic warfare and periscopes. A towed sonar array is part of the kit.


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