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CBI to probe VVIP copter
deal New Delhi, February 12 India had placed an order of 12 copters for VVIP use with AugustaWestland, a subsidiary of Finmeccanica. The multicore deal was signed in February 2010. The first lot, comprising three copters, was delivered in December last year while the remaining nine would be delivered in batches by March 2014. “Future deliveries will depend on the outcome of the CBI probe and the Ministry of Defence could evoke the integrity clause to stall the deal while imposing penalties on the maker,” top MoD sources said. The next batch of three choppers is arriving in June this year, followed by another batch in December and the last one in March 2014.
Defence Ministry spokesperson Sitanshu Kar said: “The contract signed with Augusta Westland includes specific provisions against bribery and the use of undue influence as well as an integrity pact. Since no specific input has been received so far from the two governments (UK and Italy), the MoD has decided to refer the case to the CBI for inquiry”. Under the integrity pact, the MoD could forfeit the bank guarantees furnished by the copter-maker. The copters supplied by Augusta would be a part of the IAF’s Communication Squadron, which ferries the President, the Prime Minister and other VVIPs. So far, the Russian-built Mi-17 is used for VVIP duties. “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 of 12 helicopters by Finmeccanica's subsidiary AugustaWestland to the Indian government," 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 AugustaWestland won the contract, the agency reported. The Italian firm had won the bid beating American chopper maker Sikorsky. The BJP today said it has been raising the issue of financial irregularities in the VVIP helicopter deal for the past one year and insisted that the Congress-led UPA government must give an explanation about the reported anomalies. After the arrest, the Italian firm said in a statement: "Finmeccanica expresses support for its chairman and CEO, with the hope that clarity is established quickly, whilst reaffirming its confidence in the judges." 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. In December 2012, Defence Minister AK Antony told Parliament that there were allegations of bribery in a deal to procure VVIP helicopters from Augusta Westland, but no formal inquiry has been ordered into the case due to lack of “specific information” so far. “If any wrongdoing is found in the case, suitable measures will be taken by the ministry,” he had said.
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Giuseppe Orsi (in pic), the CEO of aerospace giant Finmeccanica, was arrested in Italy on graft charges