Friday, April 22 2005 22:08 Hrs (IST) - World Time -

Johannesburg: South Africa's loss-making arms manufacturer Denel said today (Apr 22, 2005) it was responding to questions from India over allegations of corruption surrounding a 2003 multi-million-dollar contract to supply rifles to India.

India has asked for information concerning allegations reported in the South African and Indian media that Denel had hired a British firm to peddle influence in India to secure the contract worth some $ 3.9 million.

"Denel is in the process of responding to the Indian Government's questions and for that reason we are not in a position to comment further," Denel spokesman Sam Basch told Agencies.

The Johannesburg-based 'The Star' newspaper reported this week that South Africa's elite Scorpions investigators were looking into allegations that Denel had hired Varas Associates, based in the Isle of Man, to lobby India's military price negotiating committee in New Delhi, which decides military tenders.

But Basch said, "We are not aware of any Scorpions investigation."

Meanwhile Scorpions spokesman Makhosini Nkosi refused comment, saying: "We are taking up the case of 'The Star' with the press ombudsman as they have reported that we are carrying out a probe but there is no source or back up in their story."