Rakon defends itself but products' purpose still in question

Rakon says there is no hidden story regarding its products being used to guide smart weapons.

In a statement on Saturday, Rakon managing director Brent Robinson said the company "fully disclosed" the use of its products for military and aerospace applications in its recently published offer document.

However, there is no specific mention of smart bombs or smart shells in its share offer and prospectus.

The factual matters raised in Rakon's statement included:

"Rakon has fully disclosed the use of its products for military and aerospace applications in its recently published offer document."

[Context from the Weekend Herald investigation: Fully disclosed? Rakon's offer and prospectus document states its products go into "military/aerospace applications" but makes no specific mention of it providing smart bomb components or developing a "nuclear-hardened product" for smart bombs, or a product designed for use in artillery.

"GPS guidance systems" is mentioned once - in a section dealing with the quartz crystal industry in general rather than Rakon in particular - as one of the end uses of crystals and oscillators.]

"Rakon is proud of the quality of its products and the consistently superior quality ratings achieved across its broad customer base."

"None of our products are being designed or manufactured for use in nuclear weapons."

[Context from Weekend Herald investigation: Last August, Rakon said it was "not privy to the end-use systems, equipment or applications developed by its customers". The Herald did not say that Rakon was designing or manufacturing products for use in nuclear weapons but that a product was being developed for the United States' nuclear defence programme.

Rakon is developing a crystal oscillator (MTSXO) described in its internal documents variously as "nuclear-hardened", "radiation-hardened" or "nuclear resistant" for Rockwell Collins, an American company whose products include munitions navigation systems. The product would enable the United States to respond to nuclear attack with guided missiles. Specifications include that "the oscillator shall incorporate material in order to maintain performance during exposure to nuclear radiation", and to a depth of minus 135 metres. This is a greater depth than specifications on Rakon's standard MTSXO which are required to maintain performance from "-85 meters to 24,385 meters".]

"Rakon has not invented technology specifically for US smart bombs. Although the military and aerospace industry is an important market for Rakon, it comprises less than 4 per cent of Rakon output by unit volume."

[Context from Herald investigation: No mention was made of Rakon "inventing" such technology for smart bombs. Rakon has received funding from Rockwell to adapt product which Rockwell includes in weapon navigation systems. This product can also be used in non-military applications. Military and aerospace industries make up 21 per cent of Rakon's sales by value, according to 2005 Rakon company profile.]

* Rakon's two points criticising the Herald's investigation are rejected. All material was verified as being Rakon's internal and public statements before publication. No material was distorted or sensationalised but was convincingly in context from extensive documentation examined.
- Editor