Stealth 'secrets for sale' probe

A former spy watcher has been appointed to head an inquiry into links between the Australian Defence Force and a US engineer arrested for selling US military secrets.

Attorney-General Philip Ruddock has appointed former inspector-general of intelligence and security Ron McLeod to head the inquiry into whether the ADF tried to illegally buy the secrets.

Media reports last year revealed American Noshir Gowadia, 61, co-owned a Canberra-based company, NTech Australia, with Australian defence employee and former navy lieutenant-commander Arthur Lazarou.

Mr Lazarou works in the Defence Materiel Organisation, the agency that equips and clothes the nation's armed forces.

Gowadia was arrested in the US last October and charged with allegedly selling top secret US B-2 stealth bomber technology to foreign powers.

While the foreign powers have not been named, China and Australia are believed to be among them.

The technology enables aircraft to evade heat-seeking missiles.

Gowadia had allegedly asked Australian defence officials for $3 million to develop the top-secret, infra-red suppression technology to protect RAAF aircraft, media reports said.

The independent investigation will look at whether any disclosure by NTech of US classified information to Defence took place outside of established channels.

AAP

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