Revealed: Hidden story of NZ export star Rakon

An Auckland company, Rakon Ltd is winning plaudits for leading the way in cutting-edge technology, especially through making a key component in GPS navigation systems.

Last year it won the New Zealand Trade and Enterprise supreme award for exports. And when it launched on the Stock Exchange two weeks ago it was warmly received by investors.

But there is something that Rakon has been keeping quiet - it is the sole
supplier of an important component in the smart bombs made for the United States military.

Rakon said last year that it was not privy to the end-use systems of its
customers however a major Weekend Herald investigation today can reveal:

* For 10 years Rakon has been knowingly supplying the key component for US-made smart bombs which have been used in conflicts from Kosovo to Iraq.

* Rakon aims to dominate the "lucrative and expanded guided munitions and military positioning market'' within five years.

* It has worked on developing smart-bomb components that will function
during nuclear fallout, thus enabling the US to respond to nuclear
attacks.

* Although Rakon claims its products are fault-free, questions have been raised about whether persistent problems remain, especially at
temperatures that are very high or very low.

The Weekend Herald report, by award-winning investigative journalist Phil Taylor, is based on extensive internal company documents. It traces how the company became involved with the US defence industry, spells out the extent of Rakon's links and also raises questions about whether Rakon products have slipped through the legal net designed to control exports that can be used in weapons systems.

Follow the link below to read the full story.