NEW DELHI, Feb 12:
Another scam unfolded today with the arrest of the head of a State-owned Italian aerospace company that is suspected of paying bribes of about 362 crore in India to get orders for helicopters to ferry Indian VVIPs, prompting the Government to order a CBI probe.
The Ministry of Defence also decided to put on hold the receipt of the remaining nine of the 12 helicopters for which the Rs 3600 crore deal was struck in 2010.
“Giuseppe Orsi, the head of Italian defence and aerospace giant Finmeccanica, was arrested on Monday in relation to a probe into international corruption. He is suspected of involvement in the payment of bribes regarding the sale to the Indian Government of 12 helicopters produced by Finmeccanica’s subsidiary AgustaWestland,” Italian news agency Ansa said.
Orsi, the CEO of Finmeccanica, was at the helm of AugustaWestland when the deal was struck and he is suspected of involvement in the payment of bribes.
Prosecutors suspect that around 50 million euros (Rs 362 crore approximately), about 10 per cent of the deal were ploughed back into kickbacks to ensure AgustaWestland won the contract, the agency reported.
The current CEO of AugustaWestland Bruno Spagnolini was put under house arrest, the agency said.
In February 2010, India had inked the deal to acquire the 12 three-engine AW-101 helicopters from AgustaWestland for IAF’s elite Communication Squadron, which ferries around the President, PM and other VVIPs.
Soon after the news of arrest reached here today, Defence Minister A K Antony ordered a CBI probe into the deal.
The Ministry said it had sought information from Governments of Italy and UK but “no specific inputs” were received substantiating the allegations.
“Since no specific input has been received from the two Governments, the Ministry of Defence has decided to refer the case to CBI for inquiry,” Defence Ministry spokesman said.
“In a recent report appearing in certain sections of the media, it has been reported that the Chairman of M/s Finmeccanica has been arrested in connection with the investigation into the case of the sale of helicopters to India,” the Defence Ministry spokesman said.
He added that the contract signed with AugustaWestland includes “specific contractual provisions against bribery and the use of undue influence as well as an integrity pact.”
Amidst suspicion of bribery, Indian mission in Rome had sought a detailed report from Italian Government but Italy had said it could not be shared as it was under judicial process, External Affairs Ministry spokesman Syed Akbaruddin said.
The report was sought after Defence Ministry’s request.
The Italian firm had pipped American Sikorsky to bag the crore deal, which was cleared by the Cabinet Committee on Security despite initial objections from the finance ministry.
The deal has been under the scanner for more than a year now after Italian media reports suggested the arrest of two alleged middlemen in Europe for paying bribes to secure it.
The first three of the 12 AgustaWestland VVIP choppers have already arrived in India and the rest were expected in the coming months.
After the arrest, the Italian firm said in a statement that “Finmeccanica expresses support for its Chairman and CEO, with the hope that clarity is established quickly, whilst reaffirming its confidence in the Judges.”
It added, “With reference to the precautionary measures issued today towards the Chairman and CEO of Finmeccanica and the CEO of the controlled Company AgustaWestland, Finmeccanica confirms that operating activities and ongoing projects of the Company will continue as usual.”
Orsi, who had known he was under investigation over the case for months, denied any wrongdoing before his arrest and said he would only resign his post if asked to do so by the Italian Government, ANSA news agency reported.
Police searched Orsi’s home and the defence contractor’s offices in Milan on Tuesday, it said.
The company is approximately 30 per cent owned by the Italian State.
Despite initial objections by the finance ministry, the CCS had cleared the deal in 2010.
Antony had then said, “IAF and SPG repeatedly told us the helicopters were required because of the changing security scenario… The finance ministry also agreed later. The CCS then took a considered decision.”
As per earlier media reports, “slush money” allegedly generated by Finmeccanica through arms contracts was used to bribe Italian political parties. The Indian VVIP helicopter deal has also come in for some mention in the reports.
After the allegations came to light, India had sought reports from the Italian investigators about their probe in the issue but no specific details were provided to it.
In Parliament, Defence Minister A K Antony had said that if any wrongdoing is found in the case, “suitable penalty measures” will be taken by the Ministry.
Antony had said the Defence Ministry was pursuing the matter and committed to take suitable penalty measures in event of allegations being substantiated.
“However, in absence of any specific information in this regard, Government has not ordered any formal inquiry into the case so far,” he said. (PTI)
Trending Now
E-Paper
Follow our WhatsApp channel