NEW DELHI: Sweden terminated investigation into Bofors arms scandal in an attempt to shield the then Prime Minister Rajiv Gandhi from embarrassment as it felt further probe may throw up more revealations of bribes to Indian officials in the deal, a declassified CIA report said.
It said details of the bribery payments were kept secret under a “scheme” as Sweden wanted to “save” Gandhi from troubles caused due to a Swedish leak while the Nobel Industries, the main company, wanted to avoid an indictment.
“Stockholm wanted to save Gandhi the troubles caused to him by the Swedish leak, and Nobel Industries wanted to avoid a bribery indictment.
“The two sides cooperated, therefore, on a scheme to keep the details of the payments scret. Stockholm eventually called off the entire bribery investigation,” the secret CIA report on Bofors arms scandal said.
The report dated march 4, 1988 by the American spy agency said a separate police investigation into the scam was terminated in late January 1988 following a trip by the Indian Prime Minister Gandhi to Stockholm. (AGENCIES)