Bofors scandal

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The Bofors scandal was a major weapons-contract political scandal that occurred between India and Sweden during the 1980s and 1990s, initiated by Indian National Congress politicians and implicating the Indian prime minister, Rajiv Gandhi, and several other members of the Indian and Swedish governments. These politicians were accused of receiving kickbacks from Bofors AB, an arms manufacturer principally financed by the Wallenberg family's Skandinaviska Enskilda Banken, for winning a bid to supply to India the company's 155 mm field howitzer – the sale of 410 field howitzers, and a supply contract for almost twice that amount, totalling a US$1.4 billion deal. It was the biggest arms deal ever in Sweden, and money marked for development projects was diverted to secure this contract at any cost. The investigations revealed flouting of rules and bypassing of institutions. On 16 April 1987, a Swedish radio station broke a story, sourced from a whistleblower in the Swedish police, alleging that the reputed Swedish artillery manufacturer Bofors had paid kickbacks to people in several countries, including Sweden and India, to secure a ₹15 billion (equivalent to ₹200 billion or US$2.1 billion in 2023) contract. This had been done the previous year for a deal to supply 410 155 mm calibre howitzers for the Indian army. However, none of the newspapers in India were aware of this. In May 1987, a broadcast by a Swedish radio station revealed that bribes of ₹600 million (equivalent to ₹8.2 billion or US$85 million in 2023) had been paid by Bofors to Indian politicians, members of the Congress party and bureaucrats. This was picked up by a young journalist from The Hindu, Chitra Subramaniam, who happened to be in Sweden at that time, covering another story. The scale of the corruption was far worse than any that Sweden and India...