No Corruption Charges Proven In Vvip Chopper Deal, Rules Italian Court

[timmy]

BUSTO ARSIZIO, ITALY:  A court in Italy has ruled that no kickbacks were paid in a deal for 12 helicopters for use by top Indian political leaders. It also found that there is no evidence to suggest former Indian Air Force chief SP Tyagi had accepted bribes to help AgustaWestland - the British unit of Italian defence manufacturer Finmeccanica - land the contract.

 

 

1. The Italian court has, however, found the former CEO of Finmeccanica, Giuseppe Orsi, and the former CEO of AgustaWestland, Bruno Spagnolini, guilty of false invoicing and has sentenced them to two years in prison. It has also levied a fine of 15,000 Euros each on them. Both have said they will appeal to a higher court.
2. The trial in Italy centred on corruption allegations against Finmeccanica. Its British unit, AgustaWestland, was contracted by India in 2010 to supply 12 high-end helicopters for Rs. 3,600 crore.
3. In January 2013, India cancelled the deal and the CBI was assigned to investigate whether kickbacks were paid to Indian officials, as alleged in Italian courts.
4. At the time of cancellation, three helicopters had already been delivered to India against a payment of nearly Rs. 1,100 crore.
5. Among those investigated by the CBI in India is former Air Force Chief SP Tyagi. It was alleged that he was given kickbacks through a maze of companies who dealt with his cousins. He has denied any wrongdoing.
6. The CBI has alleged that the former Air Force chief was instrumental in influencing decisions that changed the tender terms to favour the specification of AgustaWestland's helicopters.
7. Air Chief Marshal SP Tyagi was head of the Air Force from 2004-2007; he has asked how he could have played a role in a deal completed after he left his post.
8. The CBI says that the tender was changed to accommodate AgustaWestland by, among other things, lowering required altitudes where the helicopters could operate to 15,000 feet from 18,000 feet.
9. The tender terms were also allegedly changed to introduce an engine failure flying test. This favoured AgustaWestland as its helicopters were the only ones in the tender operating with three engines.
10. The CBI's investigators have traveled to Italy to meet the Italian prosecutors who have handled the case against the Finmeccanica executives.