Finmeccanica helicopter deal with India ‘at risk’

(ANSA) – Rome, November 19 – A major contract for India to buy a dozen helicopters from Italy’s Finmeccanica risks cancellation in a long-running saga of alleged corruption, Italian media reported Tuesday. Finmeccanica subsidiary AgustaWestland, who is producing the AW101 helicopters outfitted for VIP use, confirmed managers were meeting with the Indian defence minister on Wednesday, but denied receiving any notice that the contract was in jeopardy. Both Italy and India have opened separate judicial investigations into allegations of bribery in the multi-million-euro deal between Indian officials and Finmeccanica, which is partially owned by the Italian government.

“(Finmeccanica) trusts in the impartial and transparent respect of court proceedings and the principles of the law, for which India boasts a solid reputation,” said the defence and aerospace contractor in a statement. Finmeccanica Chief Executive Giuseppe Orsi along with Bruno Spagnolini, chief executive of the AgustaWestland helicopter unit, are suspected of corruption in relation to bribes allegedly paid to secure the contract to sell the helicopters to India.

Indian auditors have said they felt that the contract involved an “unreasonably high” expense and said regulations on supplies and contracts were violated.

They have also questioned the decision by the former Indian air force chief, S.P. Tyagi, in 2007 to conduct the helicopter trials overseas.

Indian detectives have raided Tyagi’s home as part of the separate bribery investigation.

The government of India froze payments on the contract in February and threatened legal action if any wrongdoing was uncovered.