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Karachi affair
Karachi Affair () refers to the commissions and kickbacks paid by France when it sold Agosta submarines to Pakistan and the May 8, 2002 terrorist attack in Karachi, Sindh, Pakistan. In 1994, France negotiated a deal to sell three Agosta-class submarines to Pakistan for a sum equivalent to €826 million (£684m, $996m). Commissions of 6.25% of the contract, approximately €50 million, were paid out.〔(French divorce holds key to Karachi affair )〕 Some 50m Euros were paid as 'sweeteners' to various senior Pakistani military and political leaders. At the time, this was legal, because France signed an OECD convention outlawing commissions only in 2000.〔(Sarkozy queried over Pakistan arms cash )〕
These contracts are alleged to have financed the campaign of the then Prime Minister Edouard Balladur in the French presidential election, 1995. When his rival Jacques Chirac was elected, he cancelled the commissions and kickbacks, angering many officials in Pakistan.〔(Villepin backs 'Karachigate' claims against Sarkozy )〕
Some intelligence reports allege that the May 8, 2002 terrorist attack that killed eleven French engineers in Karachi was in retaliation for the cancellation of these commissions.〔(France: Investigation of 2002 Karachi bombing implicates Sarkozy )〕 Some intelligence reports allege that Pakistan Army's ISI intelligence used part of these commission to finance Kashmiri millitants in Indian-administered Kashmir.〔(Agosta Re-Kickbacks Confirmed )〕 Other reports allege that Harkat-ul Mujahideen al-Alami, an ally of al-Qaeda, carried out the terrorist attack.〔(The 'Karachi affair' and French Naval bombing )〕
==Intermediaries, commissions and kickbacks==
The payment of commissions and kickbacks to foreign public officials is common in the arms industry. It is intended to 'convince' political leaders and military officials and was legal in France until the signing of the OECD Convention against Corruption in 2000. The French government agency, Société française d’exportation de matériel militaire et aéronautique (SOFMA), channelled money to political and military officials through front companies in Pakistan and France. The names of the recipients are secret but the amounts are known and were reported to the French Ministry of Finance. These commissions are 6.25% of the contract amount. The French Libération newspaper revealed that payments of SOFMA continued until 2001, when they stopped by former French President Jacques Chirac.
抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』
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