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rotornut
1st Jan 2014, 15:47
India cancels scandal-hit AgustaWestland chopper deal - The Times of India (http://timesofindia.indiatimes.com/india/India-cancels-scandal-hit-AgustaWestland-chopper-deal/articleshow/28237469.cms)

NEW DELHI: India on Wednesday finally cancelled the controversial Rs 3,546 crore contract for 12 VVIP helicopters inked with AgustaWestland in February 2010, which has been enmeshed in allegations of huge kickbacks for over an year now.

The move came just before Indian officials were to question Guido Ralph Haschke, one of the three middlemen in the helicopter deal who allegedly made veiled references to proposed kickbacks to Indian politicians, bureaucrats and IAF officers in a hand-written "draft budget" two years before the contract was actually inked. The Indian officials were to seek clarifications from Haschke through their lawyer on January 6 during the ongoing proceedings in an Italian court.

The CBI here is conducting a parallel probe into the case after having registered an FIR, against former IAF chief Air Chief Marshal (retd) S P Tyagi and 14 others, in March last year. The defence ministry, in turn, last February had first issued a showcause cancellation notice to AgustaWestland, the UK-based subsidiary of Italian conglomerate Finmeccanica. It had also frozen all further payments to the company despite having inducted only three of the 12 AW-101 helicopters, with around 45% of the total contract value already been paid, which were meant to ferry the President, PM and other VVIPs.

The final cancellation process was initiated in November after MoD received the opinion of the law ministry and the attorney general that there was "a clear violation" of the pre-contract integrity pact and the contractual obligations by AgustaWestland. The provisions provide for "strict action including the cancellation of contract, recovery of payment, blacklisting and penal action".

As reported by TOI earlier, Italian prosecutors have presented in court a "draft budget" document prepared in 2008 by Haschke in conjunction with another alleged middleman, London-based consultant Christian Michel, known for his connections and access to politicians in India.

Under the heading "POL" (politicians) in the document, 3 million euros have been earmarked for a person identified as "AP", while 15/16 million euros have been shown against "FAM" (family), as per the reports from Italy. While it's not clear whether Haschke has been questioned on these references, the document also lists what seem like key posts in the defence ministry by references like "DS", "JS AIR", "AFA", "DG Acquisitions" as well as "CVC" under the head "BUR" (bureaucrats), with 8.5 million euros being budgeted for them.

Overall, Haschke, his partner Carlos Gerosa and Michel were allegedly paid kickbacks totalling 51 million euros (around Rs 400 crore) to swing the deal for AgustaWestland. "Guido Haschke and Carlo Gerosa managed to send 5.6 million Euros through Mohali-based IDS Infotech and Chandigarh-based Aeromatrix Info Solutions Private Ltd to India and kept the remaining amount of about 24.30 million euros received from AgustaWestland with themselves in the account of IDS Tunisia," says the CBI FIR.

AgustaWestland had recently invoked arbitration proceedings but it has been rebuffed by the MoD, which maintains the company clearly violated the pre-contract integrity pact.

nomorehelosforme
1st Jan 2014, 17:07
Agusta Westland is the helicopter arm of Italian defence giant Finmeccanica
Continue reading the main story
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India has cancelled a $753m (£455m) helicopter deal with Italian defence giant Finmeccanica after allegations of corruption, officials say.

The contract was for 12 luxury helicopters to transport VIPs.

Defence officials said they scrapped the deal because an integrity pact had been breached by the firm's Anglo-Italian helicopter arm AgustaWestland.

India suspended payments in February after allegations that AgustaWestland paid bribes to win the contract.

The deal for 12 three-engine AW-101 helicopters was signed in February 2010 after the company beat off competition from US and Russian rivals.

The aircraft were for an elite squadron of the Indian Air Force which ferries around the president, the prime minister and other VIPs.

Three of the 12 British-made helicopters ordered have already been delivered to India. The remaining nine were due to be delivered by the middle of 2014 - that order has now been stopped.

Italian prosecutors suspect that kickbacks worth almost $67.6m were paid to Indian officials to secure the contract.

Giuseppe Orsi, the former chief of Finmeccanica, and Bruno Spagnolini, the former head of Agusta Westland, are being tried in Italy on fraud and corruption charges in connection with this deal - they both deny wrongdoing.

Former Indian Air Force chief SP Tyagi has also denied allegations that he or any of his relatives were paid bribes to secure the deal, after Italian investigators named him in the preliminary inquiry submitted to court.

India's Congress party has been hit by a series of damaging corruption scandals in recent years and the opposition has made regular calls for Prime Minister Manmohan Singh to resign.

For Italy, too, this represented the latest in a string of corporate scandals. The Italian government owns about 30% of the company.

meanttobe
1st Jan 2014, 18:51
Could this have a knock on effect to the recently signed Norwegian SAR contract win?


Norway AW101 deal includes penalties if AW executives found guilty of corruption (http://online.wsj.com/news/articles/SB10001424052702304367204579268091877420338)

OSLO—The Norwegian government said it had inked an option to fine AgustaWestland in case two former chief executives are found guilty of corruption, an important clause in a $1 billion deal that was signed Thursday between Oslo and the Anglo-Italian helicopter maker.

The government ordered 16 AW-101 search and rescue helicopters from AgustaWestland, a U.K.-based unit of Italy's biggest defense contractor Finmeccanica SpA, but said it had put language in the contract to protect its interest as corruption investigations against the company are ongoing in India and Italy.

"We have clauses in the contract, which under certain terms could make Norway cancel the deal," Norway's Minister of Justice and Public Security Anders Anundsen told The Wall Street Journal after signing the deal in Oslo. "We also have clauses for a financial penalty in case anybody is convicted of corruption."

Two former AgustaWestland chief executives are on trial in Italy accused of bribery, following investigations there and in India into the alleged use of bribes to win a €556 million ($760 million) contract in 2010 to supply a dozen helicopters to the Indian defense ministry.

"There are lots of clauses that will protect the Norwegian interest" in the contract that was signed today, AgustaWestland chief executive Daniele Romiti said in an interview after the signing ceremony in Oslo.

He said he was confident the contract wouldn't be canceled. "I don't feel any threat from the potential outcome of the Indian situation."

Norway chose AgustaWestland to supply the 16 helicopters, following a lengthy competition process with contenders from Eurocopter, NHIndustries, and Sikorsky Aircraft Corp., a unit of United Technologies Corp. The latter two companies were excluded from the competition this summer.

Mr. Anundsen said he didn't want to quantify the size of any potential fines that could be levied against AgustaWestland, but said it could be "pretty big."

He said he was reluctant to cancel the contract if the former executives were convicted close to the 2017 delivery date, because that could reduce Norway's emergency preparedness as the country's helicopter fleet is aging and becoming less reliable.

"The financial penalty [clause] is a relief, because then the Parliament could adopt that instead of cancellation. This creates flexibility if this, contrary to expectations, should become a problem," Mr. Anundsen said.

Write to Kjetil Malkenes Hovland at [email protected]

kflexer
1st Jan 2014, 21:05
At least the Indians can deal with corruption!:ok:

India cancels chopper deal following corruption scandal | ABC Radio Australia (http://www.radioaustralia.net.au/international/2014-01-02/india-cancels-chopper-deal-following-corruption-scandal/1241820)

helihub
1st Jan 2014, 21:49
How the general press are making headlines out of this story... In early October, AW invoked a clause which they believed (from their advisors' reading of the contract, presumably) started the arbitration process due to deadlock between the two contracting parties.

The Indians then reportedly (http://www.indianexpress.com/news/defence-ministry-to-issue-showcause-notice-to-agustawestland-for-cancelling-deal/1180431/) issued a show-cause notice to AW for cancelling the deal (Nothing from AW at that time said they had any intention of cancelling).

Today's press release from Indian Gov't (full text below) basically says that they have cancelled the deal and appointed an arbitrator. We could get lost in the Indian way of expressing things here, but haven't the Indians just agreed to appoint an arbitrator to sort out the "dispute"?

QUOTE from here (http://pib.nic.in/newsite/PrintRelease.aspx?relid=102248) .... (and the spelling is theirs, not mine!)
VVIP Choper Agreement with AgustaWestLand International Ltd. (AWIL) Terminated

The Government of India has terminated with immediate effect the Agreement that was signed with M/s. AgustaWestLand International Ltd. (AWIL) on 08 February, 2010 for the supply of 12 VVIP/VIP helicopters on grounds of breach of the Pre-contract Integrity Pact (PCIP) and the Agreement by AWIL.

Based on the opinion received earlier from the Attorney General of India, it has been the view of the Government that integrity-related issues are not subject to arbitration. However, AWIL has since pressed for arbitration and appointed an arbitrator from its side. In view of this, MoD sought afresh the opinion of the Attorney General. With a view to safeguard the interests of the Government, MoD has nominated Hon’ble Mr Justice BP Jeevan Reddy as its arbitrator.

helihub
2nd Jan 2014, 06:49
Further thought. The statement says "terminated" not "cancelled". Plus AW have yet to receive anything from India, despite the latter's press release.

dmanton300
2nd Jan 2014, 10:34
Further thought. The statement says "terminated" not "cancelled". Plus AW have yet to receive anything from India, despite the latter's press release.

The Grauniad seems to think the phraseology is all important. . in that the Indians are seeking to "terminate" the contract and retain the three aircraft already delivered with an adjustment to monies already paid to account for the difference (presumably between three and 12 aircraft).

heli1
2nd Jan 2014, 14:26
Politics is a big factor in all this...both in Italy and India where the opposition is gearing up for elections this spring and making all the accusations. Reminds me of Canada...best helicopter chosen for the job but ruined by politicians interfering. Not the first time in India either...ask Eurocopter how long the Light utility helicopter for the Army has been dragging on...twice the As550 has been selected and twice the government has found an excuse to run the competition again!

talkpedlar
2nd Jan 2014, 15:59
Just my (carefully worded) view here (and based upon a number of Mumbai/Bombay contracts as rotary skipper and sales-demo pilot) IMHO, if AW hadn't (allegedly) greased palms in the early stages of contract negotiation, I doubt they would have reached such an advanced stage...

Also IMHO.this whole business has a whiff of political interference/involvement... as Heli1 has already suggested.

Cry foul after deliveries have started?

Maybe the culture has changed in recent times but in the past, if you wanted to play ball you played by their rules. :ugh:

dmanton300
13th Jan 2014, 12:01
Interesting. . . apparently the Italian courts don't think you can claim all your money back BEFORE you've actually provided any evidence or proof of wrongdoing, and AFTER you've decided that you WILL appoint an arbitrator after all.

(Reuters) - An Italian judge has blocked demands by India to recover around 300 million euros in bank guarantees from defence group Finmeccanica(SIFI.MI) in a dispute over a scrapped helicopter deal, two people with direct knowledge of the matter told Reuters.

India's demands came after the New Delhi government last week cancelled a 560-million-euro deal with Finmeccanica unit AgustaWestland for 12 AW101 helicopters over what it termed a breach of integrity relating to alleged corruption.

The temporary measure in favour of AgustaWestland, which is represented by the Italian litigation team of Cleary Gottlieb Steen & Hamilton, will be discussed at a hearing in Milan in mid-February.

It relates to guarantees with Deutsche Bank SpA, Deutsche Bank AG (DBKGn.DE), Intesa Sanpaolo (ISP.MI) and the State Bank of India, one of the sources said on Saturday, asking not to be named because the legal proceedings are being conducted behind closed doors.

"There will be the hearing in 40 days, meanwhile the tribunal has blocked everything," the source said.

Finmeccanica declined to comment, while the Indian government and the banks did not respond to immediate requests for comment.

Indian defence officials have said AgustaWestland had received just over 43 percent of the deal's value, a sum that the Anglo-Italian firm matched with bank guarantees to be reclaimed after the helicopters were delivered.

The overall value of the multi-currency guarantee scheme is 300 million euros but it was not clear whether the State Bank of India had already paid back to the Indian government around 30 million euros, a source close to the matter said on Saturday.

India froze payments for the contract after Finmeccanica's then Chariman Giuseppe Orsi was arrested in February for allegedly paying bribes to secure the deal, embarrassing the New Delhi government before parliamentary elections due by May 2014.

Orsi and former AgustaWestland head Bruno Spagnolini, who have both denied for allegations they paid bribes to middlemen to secure the deal, are being tried in the northern Italian city of Busto Arisizio.

The separate dispute over the contract, signed in 2010 by AgustaWestland International Ltd, the British unit of the helicopter company, will likely be a lengthy process.

New Delhi has agreed to AgustaWestland's calls for arbitration, which will take place in India and could take months or even years to complete. (Reporting by Danilo Masoni and Lisa Jucca; additional reporting by Shyamantha Asokan in New Delhi; Editing by Toby Chopra)

meanttobe
11th Feb 2014, 20:19
Defence ministry initiates blacklisting process against AgustaWestland - The Economic Times on Mobile (http://m.economictimes.com/news/politics-and-nation/defence-ministry-initiates-blacklisting-process-against-agustawestland/articleshow/30203294.cms)

ericferret
12th Feb 2014, 10:18
The UK donates around £290,000,000 to India in aid. This to a country with a space program and an aircraft industry. I think I would find better uses for that money with more deserving recepients both at home and abroard. Blacklist away.

mezzanaccio
12th Feb 2014, 10:57
@ ericferret: What are the donations for? Weird.

I have the feeling there is so much hypocrisy in this case. I find this could also be connected to the situation of the two Italian soldiers that have been held captive in India in wait for trial for two years. link (http://en.wikipedia.org/wiki/2012_Italian_Navy_Marines_shooting_incident_in_the_Laccadive _Sea)
Which definitely has deep political connections.

TorqueOfTheDevil
12th Feb 2014, 12:55
if AW hadn't (allegedly) greased palms in the early stages of contract negotiation, I doubt they would have reached such an advanced stage...


...probably true, but had the AW bid been ruled out at an earlier stage, the firm would not now be dealing with a major PR disaster plus threats of fines from Norway!

heli1
12th Feb 2014, 20:32
Hypocrisy......that's the word and it will get worse until they get past the national elections in May. Whichever Party is in power you can be sure the opposition will accuse them of corruption and worse.

dmanton300
31st Jul 2014, 09:00
Well, the Italian courts have binned the investigation and specifically acknowledged that AW or Finmeccanica had no part in any corruption or bribery. The CBI have produced nothing of substance for nearly 18 months, and were relying heavily on the now halted Italian investigation for evidence. Where now?

heli1
31st Jul 2014, 09:46
It not all over yet.....the case still stands against the ex Finmeccanica and AW CEOs with a judgement expected in October after the summer recess......and even then, if the prosecution has its way, there is an appeal system which, as Berlusconi has shown ,can be dragged out for years until any verdict is overturned. Dontcha just love the Italians!

Hilife
6th Aug 2014, 12:28
Dmanton300

Well, the Italian courts have binned the investigation and specifically acknowledged that AW or Finmeccanica had no part in any corruption or bribery. The CBI have produced nothing of substance for nearly 18 months, and were relying heavily on the now halted Italian investigation for evidence. Where now?

So, Finmeccanica, Italy’s second biggest industrial group and 30% owned by the Italian Government, reaches an out of court settlement with Italian State prosecutors to settle legal proceedings over alleged corruption payments by one of its companies (AW agreed to pay a fine to settle the case did it not?) and you don’t find the outcome a little tongue-in-cheek.

Lonewolf_50
6th Aug 2014, 12:46
Business as usual in Italy. Why would you expect otherwise? I suspect a few other nations have reached similar deals in various problem cases featuring major industrial organizations, and banks ... ;)

Money talks. :mad:

tottigol
6th Aug 2014, 13:34
Settling out of court is not an inherent admission of guilt, y'all living in the States (the most legally litigious country in the world) ought to know this.
What is the percentage of accident and malpractice lawsuits that reached the trial level versus the ones settled iut of court?
Want to ask Bell and Sikorsky?
Settling out of court greatly reduces legal expenses as well.

Mac the Knife
6th Aug 2014, 13:56
Pity it's too late for the South African "Arms Deal" - now that was a pretty piece of corrupters and eager corruptees.

Mac

:cool:

[At the end of the day we'll have paid around R70 billion for subs, aircraft and surface ships that we can neither man or maintain - thanks Europe!]

Thomas coupling
6th Aug 2014, 21:20
Ah C'mon guys.
Money takes all the pain away:

BAe have allegedly been shipping money out the back door since corruption was invented: Al Yamamah:
Secrets of al-Yamamah | The Guardian BAE investigation | guardian.co.uk (http://www.theguardian.com/baefiles/page/0,,2095831,00.html)
French with the Taiwanese frigates.
Italy with Allitalia and AW.

USA: Don't even go there.
And we haven't even begun with 3rd world countries............
Or FIFA :ugh::ugh::ugh:

And recently, Bernie Ecclestone handing over £29 million to a guy - to go away and not talk about his tax affairs and then on top of this, he slips the German government £60 million to take the pain away also???
BBC News - F1 boss Bernie Ecclestone pays to end bribery trial (http://www.bbc.co.uk/news/world-europe-28656050)

Peter-RB
7th Aug 2014, 19:56
TC ...Really ..how can you talk about the little burner like that, he's whiter than his hair...........
a mate of mine who sells racing tyre's told me he's good. :E :ooh:

PRB now in hiding..!

mezzanaccio
10th Oct 2014, 08:23
Ex-Finmeccanica Chief Cleared of Corruption Charge - WSJ (http://online.wsj.com/articles/ex-finemeccanica-chief-cleared-of-corruption-charge-1412854110)

So, no wrongdoing. All this mess for nothing?

dmanton300
10th Oct 2014, 08:42
Ex-Finmeccanica Chief Cleared of Corruption Charge - WSJ (http://online.wsj.com/articles/ex-finemeccanica-chief-cleared-of-corruption-charge-1412854110)

So, no wrongdoing. All this mess for nothing?

Well, from the Italian perspective. I'm sure the CBI in India are desperately looking for something to justify the premature cashing of guarantees by the Indian government, who appear to have behaved as judge, jury and executioner prior to any actual evidence coming to light. The fat lady is still in her dressing room doing scales. . .

Ian Corrigible
10th Oct 2014, 10:32
So, no wrongdoing
Finmeccanica looks to rebuild India ties after former head convicted (http://in.reuters.com/article/2014/10/09/finmeccanica-india-idINKCN0HY14Y20141009)
Reuters - An Italian court sentenced former Finmeccanica Chairman and CEO Giuseppe Orsi to two years in jail for falsifying invoices in a corruption case linked to an Indian deal
Meanwhile,

India to use Russian Mi-17-V5 helicopters to transport VIP persons (http://en.itar-tass.com/world/753054)

I/C

dmanton300
20th Oct 2014, 12:08
The Indian helo procurement train to nowhere rumbles happily on. . . .

Tender for 56 Naval Choppers Scrapped (http://www.defense-aerospace.com/article-view/release/158060/india-scraps-third-helicopter-tender.html)