In an eerie similarity with how the Bofors deal had unravelled itself first, in Sweden in the mid - 1980s, with Swedish state prosecutors moving against the company’s official and information being leaked to a local news publication, the AgustaWestland VVIP helicopters deal story too seems to be unspooling itself in the same vein.
Just ahead of the Italian general elections, to be held a fortnight later, the state-owned Finmeccanica chief executive and chairman, Giuseppe Orsi, was arrested in Milan. Orsi was the chief executive of Finmeccanica-controlled AgustaWestland when the deal with the government here was signed in 2010. Three others, including the current chief executive of AgustaWestland, Bruno Spanolini was also detained by the authorities. This was on account of the company paying kickbacks calculated to be worth Rs 362 crores or around 50 million euros on a deal of Rs 3,600 crores or 560 million euros, according to the news agency PTI.
Millennium Post was the first newspaper that had reported in November last that AugustaWestland could get into a position for bagging the contract only after the Air Staff Qualitative Requirements (ASQR) prepared by the Indian Air Force (IAF) was changed by then defence minister in 2006.
Only he was authorised by the rules to make the changes in ASQR, of course on the advice of the IAF and his ministry. The newspaper had quoted then chief of air staff, Air Chief Marshal (retd) SP Tyagi saying that ‘only the (defence) ministry was capable of changing ASQR.’ Of course, he had also acknowledged that one SK Tyagi, whose name had emerged as one of the two middlemen, to have received the kickbacks, was his first cousin.
On Tuesday, the Defence Minister, AK Antony, called for a Central Bureau of Investigation (CBI) investigation into the deal, after the reports of the Italian arrests became public. Both the defence and the external affairs ministry in New Delhi stated: ‘Italy has not shared details of a corruption probe into the sale of helicopters to the Indian government.’
A brief Finmeccanica statement maintained: ‘With reference to the precautionary measures issued today (Tuesday) towards the Chairman and CEO of Finmeccanica and the CEO of the controlled Company AgustaWestland, Finmeccanica confirms that the operating activities and ongoing projects of the Company will continue as usual. In addition, Finmeccanica expresses support for its Chairman and CEO, with the hope that clarity is established quickly, whilst reaffirming its confidence in the Judges.’
Reuters reported that Orsi’s appointment to lead the defence group in May 2011, was backed by the Northern League party, at the time an ally of then prime minister, Silvio Berlusconi.
Centre-left politicians in Italy had called for Orsi to step down when he was first targeted in the corruption probe. Orsi, a long-serving defence industry executive, has denied wrongdoing.
Just ahead of the Italian general elections, to be held a fortnight later, the state-owned Finmeccanica chief executive and chairman, Giuseppe Orsi, was arrested in Milan. Orsi was the chief executive of Finmeccanica-controlled AgustaWestland when the deal with the government here was signed in 2010. Three others, including the current chief executive of AgustaWestland, Bruno Spanolini was also detained by the authorities. This was on account of the company paying kickbacks calculated to be worth Rs 362 crores or around 50 million euros on a deal of Rs 3,600 crores or 560 million euros, according to the news agency PTI.
Millennium Post was the first newspaper that had reported in November last that AugustaWestland could get into a position for bagging the contract only after the Air Staff Qualitative Requirements (ASQR) prepared by the Indian Air Force (IAF) was changed by then defence minister in 2006.
Only he was authorised by the rules to make the changes in ASQR, of course on the advice of the IAF and his ministry. The newspaper had quoted then chief of air staff, Air Chief Marshal (retd) SP Tyagi saying that ‘only the (defence) ministry was capable of changing ASQR.’ Of course, he had also acknowledged that one SK Tyagi, whose name had emerged as one of the two middlemen, to have received the kickbacks, was his first cousin.
On Tuesday, the Defence Minister, AK Antony, called for a Central Bureau of Investigation (CBI) investigation into the deal, after the reports of the Italian arrests became public. Both the defence and the external affairs ministry in New Delhi stated: ‘Italy has not shared details of a corruption probe into the sale of helicopters to the Indian government.’
A brief Finmeccanica statement maintained: ‘With reference to the precautionary measures issued today (Tuesday) towards the Chairman and CEO of Finmeccanica and the CEO of the controlled Company AgustaWestland, Finmeccanica confirms that the operating activities and ongoing projects of the Company will continue as usual. In addition, Finmeccanica expresses support for its Chairman and CEO, with the hope that clarity is established quickly, whilst reaffirming its confidence in the Judges.’
Reuters reported that Orsi’s appointment to lead the defence group in May 2011, was backed by the Northern League party, at the time an ally of then prime minister, Silvio Berlusconi.
Centre-left politicians in Italy had called for Orsi to step down when he was first targeted in the corruption probe. Orsi, a long-serving defence industry executive, has denied wrongdoing.