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Antony seeks report on pay-off in Italian chopper deal
Wednesday April 25, 2012 06:58:37 PM,
IANS
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New Delhi: Defence
Minister A.K. Antony Wednesday called for a fresh report from the
Indian embassy in Rome on alleged malpractice in the Indian
procurement of 12 helicopters for VVIP transport worth Rs.3,546
crore ($788 million).
"The defence minister today (Wednesday) directed his ministry
officials to get a fresh report from the Indian embassy in Rome
following a media report alleging malpractices in the procurement
of 12 helicopters for the VVIP Communication Squadron of the
Indian Air Force from AgustaWestland," a defence ministry
spokesperson said here.
These helicopters are meant for travel in style, comfort and in
secure environs by India's political leadership, including the
president, prime minister and others.
Media reports from Italy had suggested that it was carrying out
its biggest ever probe into corruption in defence deals, as part
of which it was investigating allegations that the Indian deal led
to a payment of commission worth euro 51 million (over Rs.350
crore/$80 million).
The spokesperson pointed out that the contract for procurement of
the VVIP helicopters contained the standard provisions "against
use of undue influence and employment of agents and payment of
agency commission".
"A pre-contract integrity pact has also been signed between
AgustaWestland and the defence ministry," he pointed out.
"Any such complaint or allegation received will be investigated
and the contractual provisions invoked, in case any wrongdoing is
established, in addition to action that may be required under
law," he added.
Only a fortnight ago, India had invoked the integrity agreement it
had signed with Israeli Military Industries (IMI) for breach of
contract in setting up plants at the Nalanda ordnance factory in
Bihar for producing bi-modular charges for 155 mm artillery guns
after the company was named in a graft case against former
Ordnance Factory Board chief Sudipto Ghosh.
The Indian defence ministry had pocketed a cool Rs.227 crore that
were provided as bank guarantee by IMI towards the integrity pact
for the deal worth Rs.1,200 crore ($260 million).
Antony had also asked for a report from the Indian embassy in
February this year when media reports suggested that the graft
ombudsman of Italy was probing Finmeccanica, the parent company of
AgustaWestland, for alleged corruption.
Then, the reports had suggested that the Italian ombudsman was
probing the Indian VVIP helicopter deal too that was signed in
February 2010 when India chose AgustaWestland's AW-101 choppers
against its competitor US Sikorsky S-92.
"The Indian embassy reported that Italian authorities were
conducting preliminary investigations on allegations of financial
malpractices occurring within Finmeccanica and its subsidiaries in
general. There was no specific probe being conducted on
India-related transactions. There is no clear indication at this
stage whether the India-related deal would be probed on the
strength of preliminary investigations," the spokesperson said.
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