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Arms contract cancelled

Special Correspondent

NEW DELHI: The Government has decided to cancel the contract signed with South African company Denel for procurement of 400 anti-missile rifles and initiate action to cancel all other contracts, the Lok Sabha was informed on Thursday.

The decision was based on information received from the South African Government which revealed that the "company had prima facie violated the clauses on agents/agency commission contained in the contracts on anti-material rifles signed in March 2002," Defence Minister Pranab Mukherjee said in a written reply. Taking cognisance of the media reports, the matter was promptly referred to the CBI for investigation.

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