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Berlusconi’s latest: Bribes necessary part of business

Defending Finmeccanica SpA's jailed ex-chief executive officer Giuseppe Orsi, Italy's three-time former Prime Minister Silvio Berlusconi on Thursday said bribes are a necessary part of doing business globally.

‘Bribes are a phenomenon that exists and it's useless to deny the existence of these necessary situations,’ Berlusconi said in a televised interview.

‘These are not crimes. We're talking about paying a commission to someone in that country. Why, because those are the rules in that country,’ the former premier was quoted as saying by Bloomberg.

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 the President, PM and other VVIPs.

The deal came under the scanner of Italian agencies after allegations of kickback given in India surfaced.

The agencies arrested Orsi on Tuesday as part of their probe related to international corruption.

It is alleged that Orsi, who was heading the helicopter unit, when the deal was struck, was involved in the bribery.

Around 50 million euros (Rs 362 crore approximately), about 10 per cent of the deal, were alleged to have been given as bribes to ensure that the company won the contract.


FINMECCANICA SPA APPOINTS NEW CEO

Scandal-hit Finmeccanica SpA, Italy's biggest defense contractor, has appointed Alessandro Pansa as the new CEO to succeed Giuseppe Orsi, who was arrested this week on charges of tax fraud and corruption including alleged pay-offs in the Rs 3,600 crore VVIP chopper deal with India. ‘The Board of Directors of Finmeccanica... confirms that the Company is fully operational, and has resolved to confer to Mr Alessandro Pansa, the powers and duties previously held by Mr Giuseppe Orsi, insuring comprehensive management of the Company and the Group,’ the company said in a statement.
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