Sweden stopped Bofors probe to save Rajiv Gandhi

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 secret. 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. 

The report said numerous investigations were initiated to examine the ‘complex web’ of bribery and arms diversions but despite an admission from a key industry executive, only two individuals were charged with violating Swedish law. “Stockholm has since called off the investigation of Bofors’ bribery, probably in an effort to prevent future revelations of bribes to Indian officials that could embarrass Prime Minister Gandhi,” it said. 

The report is part of nearly 12 million secret documents CIA declassified last week. The Bofors scandal is blamed for Rajiv Gandhi losing the Lok Sabha poll in 1989.