ST Engineering’s land systems arm, ST Kinetics, says it has not received any official statements or notifications from the Indian authorities on the alleged blacklisting by India's defence ministry due to a corruption investigation.
ST Kinetics’ clarification comes at a time as various media reported on the debarment by Indian Ministry of Defence (MoD) of the unit from business dealings with the Ordnance Factory Board (OFB).
“While the Indian media has since 2009 reported that Indian authorities have blacklisted seven companies including ST Kinetics in a corruption investigation (alleged blacklisting), there were no official statements or notifications from the Indian authorities to ST Kinetics on the alleged blacklisting,” ST Kinetics says in the SGX press release after calling for a trading halt in the morning. The stock has resumed trading.
Since 2009, ST Kinetics says it has offered the authorities full cooperation and assistance as appropriate to clear its name. It says it had even offered on several occasions to open its account books for inspection by the Indian authorities but these offers were never taken up by them.
In May 2009, the Indian Central Bureau of Investigation pressed charges against several companies and individuals for alleged wrongdoings after carrying out corruption investigations.
“However, to-date no formal charges have been made by any Indian authorities against ST Kinetics or any of its employees in relation to the alleged blacklisting,” says ST Kinetics.
To seek clarification on the alleged blacklisting and to protest against the arbitrary suspension of ST Kinetics’ defence business activities, the company says it filed three petitions with the Delhi High Court in March last year.
In the court hearings and its affidavits filed, India’s MoD repeatedly stated that ST Kinetics is not blacklisted, and that the “putting on hold” of ST Kinetics’ defence business activities is but an interim arrangement only.
“With this latest ruling by the MoD, we will seek legal advice and we intend to vigorously take appropriate actions to clear our name and defend our reputation. We stress that we have not won any defence contracts in India, now nor in the past, through OFB or the MoD. This development has no impact on ST Kinetics’ defence business as India has not been a market for its defence export sales. As a responsible public listed company, we abide by all laws and regulations stipulated by the local government and we engage fully in good corporate governance practices,” ST Kinetics adds.
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