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Aerospace / Defense / Security
Ottawa, Canada
Nationality of Foreign Officials: India
Summary of Allegations:
According to press reports, the Royal Canadian Mounted Police's (RCMP) international anti-corruption unit arrested a Canadian citizen, Nazir Karigar, in May 2010, charging him with one count of corruption under the Corruption of Foreign Public Officials Act. Karigar and other representatives of a Canadian company allegedly paid bribes to Indian officials sometime between 2005 and 2007 in order to secure a multi-million dollar contract to supply a security system to an Indian government entity. The press has identified the company as the Ottawa-based Canadian subsidiary of a Texas high tech firm called Cryptometrics, which develops facial recognition software for airports and governments around the world. The firm was not awarded the contract, and later declared bankruptcy.
Details emerging from various sources indicate that the proposed USD $100 million contract would have enabled CryptoMetrics to sell its biometric facial recognition systems for airport security to Air India. Karigar is alleged to have transferred USD 250,000 to Praful Patel, then Minister of Heavy Industries in India, through a third party. The third party is purported to be a political ally of Patel, Laxman Dhoble. Patel wrote a letter to the Indian Prime Minister on 31 January 2012, in which he denied the allegations.
Karigar is also alleged to have paid hundreds of thousands of dollars to two Air India officials, and to have conspired with Hasan Gafoor, then director of security for Air India, to obtain the security systems contract.
Approximate Alleged Payments to Foreign Officials: Unspecified
Business Advantage Allegedly Obtained: Multi-million dollar contract to supply a security system
Agencies: Canada: Office of the Attorney General, Canada: Royal Canadian Mounted Police
Results: Prosecution of Individuals
Year Resolved: 2014
Compliance Monitor:
Ongoing: No
Details:
In August 2013, Mr. Karigar was found guilty under the Corruption of Foreign Public Officials Act for his role in planning to bribe Indian officials. On 23 May 2014, Mr. Karigar was sentenced to three years in prison; his sentence is the first prison term for an individual convicted under Canada's anti-bribery law.
Karigar has appealed the judgment, and on 29 May 2017 argued that his conviction should be reversed.
On 5 June 2014, the RCMP charged Mr. Barra, Mr. Bernini, and Mr. Govindia with violating the Corruption of Foreign Public Officials Act. The RCMP alleged that the defendants were part of a failed bribery scheme by CryptoMetrics Canada to win a USD $100 million contract from Air India to supply facial-recognition software.
On 6 July 2017 the Court of Appeal for Ontario upheld Mr. Karigar's conviction.