Federations oppose selection of KPMG as Consutlant for corporatization of Ordinance Factories

The All India Defence Employees’ Fedderation (AIDEF), the Indian National Defence Workers’
Federation (INDWF) and Bhartiya Pratiraksha Mazdoor Sangh (BPMS) are up in arms against
the corporatization of Ordinance Factories of the country. The 80 thousand Defence
Civilian Employees of 41 Ordnance Factories are shocked to note that the MoD have
selected M/s. KPMG Advisory Services Pvt. Ltd. as the consultancy Agency for Corporatization
of Ordnance Factories.

This arbitrary decision was taken by the Ministry of Defence when two complaints have been already
lodged in public interest with the Central Vigilance Commission (CVC), PMO and MoD
alleging serious lapses of standard norms for contracting for Corporatization of OFB
through consultancy. The Federations have also lodged a complaint in this regard to
the Supreme Commander of the Armed Forces the President of India, the Prime
Minister and the Defence Minister.

The Defence Ministry for the past few years are spending taxpayers money and
going on appointing Committees and Consultants for destroying the state owned
Defence Industry like Ordnance Factories, DRDO, MES, EME Workshops and DGQA etc.
The Federations have already challenged how the so-called Corporatization will make
the Ordnance Factories more efficient and serve the cause of self-reliance better,
especially when already the Armed Forces have stopped placing orders on the
Ordnance Factories, this will result in all the Ordnance Factories becoming sick and
closure. So far the Ministry of Defence is silent on this.

It is understood from media reports that a senior bureaucrat has made a
complaint to the Prime Minister alleging that a senior executive in KPMG India’s
advisory service offered a Joint Secretary posted in their department a “substantial
bribe” in exchange for awarding a large consulting project. We fail to understand that
why the Ministry of Defence is so keen to hand over a project which is going to destroy
the Ordnance Factories to a tainted private company. We demand an inquity into this

While spending huge money on these committees and consultants the Nation
stands to be loser. The Defence Preparedness will be at Stake, as slowly the mighty
Ordnance Factories with more than 219 years legacy will be soon destroyed. Rs. 1 lakh
crore worth assets with 65000 acres land will be the casualty. The winners in the game
will be the consultants, who are expected to take a big chunk of payment without any
contribution, since MoD has already decided to Corporatize the Ordnance Factories. The
consultants will run away by giving a plan for 4-5 years, but the whole payment will be
taken within 1 year. Afterwards neither the consultant nor the MoD Officials who ever
is involved in this will not be there when the debacle of the Ordnance Factories takes
place. They all will escape and run away.

The Government has failed to address the concerns of 80 thousand odd OFB
Employees regarding their job security and prospects at a time while unemployment is
multiplying across COVID-19 pandemic affected India. Without addressing all these
issues the Ministry of Defence Officials feels happiness in appointing Committees and
consultants by spending huge amount of tax payers money. The 80 thousand
workforce of Ordnance Factories reject the consultant and the Federations oppose the
move of the Government and are intensifying the preparations for the commencement
of Indefinite Strike from 12.10.2020 onwards.

The Defence Employees of Navy, DRDO, MES, EME, DGQA, Air Force and AOC will also
participate in a “One Day Strike” on 19.10.2020 in support of their own unsettled demands
and also to extend solidarity in support of the Indefinite Strike of Ordnance Factory Employees.

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