Volume 1 - Iraq Watch

company’s activities in 2001, New Delhi launched aninvestigation to stop the NEC’s trade with the IraqiRegime. Despite the investigation, NEC continued tosell prohibited materials to Iraq and looked for waysto conceal its activities.NEC was involved in numerous business agreementswith Iraq that were contracted outside the UN OFFprogram. Several of these contracts with Iraq violatedUN sanctions because the material or technology wasin direct support of a military system, such as theIraqi missile program.Al-Najah was the primary front company in Iraq usedby the MIC manufacturing company, Al-Rashid, toimport from NEC. In March 2002, Muntasir ‘Awni,Managing Director of Al-Najah Company, submittedseveral inquiries to Siddharth Hans. Hans hasbeen identified as holding positions with companiesin India, including director of NEC Chemicals and,at other times, several positions with NEC EngineersPvt, Ltd. In each position, Hans has supported onlyIraqi projects and inquiries for clients under Al-Najah.Among other things, the inquiries covered:• A Teflon coating machine.• Laser range-finding equipment.• Precision machinery.• Block and cylinder material.Prior to the 1991 Gulf war, Iraq had experimentedwith the use of carbon fibers to provide high strengthand light weight for some of its missile components.Al-Rashid was instrumental in missile developmentprior to the Gulf war and in the years that followed.In May of 2000 NEC contracted with the Al-RashidGeneral, Co., to provide 40 kg of “Grade A” carbonfibers. Carbon fibers, while dual-use material, haveextensive use in missiles and nuclear equipment.Figure 62 is an excerpt from captured documentsregarding this contract.NEC engineers provided Iraq with crucial infrastructuredevelopment for its missile program and otherprograms. For example, NEC designed and built anammonium perchlorate (AP) production plant forIraq. AP is an essential ingredient for modern solidpropellant production. It is the oxidizer for a solidpropellant and constitutes over half of the propellant’sweight.• NEC imported solid-propellant ingredients for Iraqisurface-to-surface missiles, in addition to othermaterials.The excerpt from captured documents in figure 63details some of the contracts undertaken between theIraqi front company, Al-Basha’ir, with India’s NEC,on behalf of MIC companies Al-Rashid and 7 NissanGeneral Company.When the Indian Government became aware ofNEC’s activities in 2001, New Delhi launched aninvestigation regarding the company’s illicit businesswith Iraq. Both Hans Raj Shiv and his sonSiddharth Hans were implicated in the investigation,which expanded overseas by September 2002.The Indian Government impounded the passports ofNEC representatives. Siddharth Hans was taken intoIndian custody when he returned to India in mid-June2003. Pending further court hearings, Siddharth wasreleased from custody in early July 2003.• In August 2002, NEC was considering changingthe name on Iraqi contracts from NEC to NipponIndustrial Equipment or Euro Projects InternationalLimited. These changes were probably in reactionto the Indian Government’s ongoing investigationof NEC.Other Indian companies involved in supplying Iraqwith prohibited items include the Arab ScientificBureau (ASB) and Inaya Trading. ASB and InayaTrading were involved in the procurement of chemicalsassociated with liquid-propellant missile systemsand with chemical production and handling equipment.According to documents recovered during anISG investigation of the ASB, there were numerousinquiries from Iraq and corresponding offers to supplyliquid-propellant missile-associated components.Solicited or offered items included:124