ITALY/INDIA: Opposition, Bharatiya Janata Party (BJP) says Indian authorities should probe into the scandal-hit deal with Italian defence group Finmeccanica's AgustaWestland unit, and not to evade questions by scrapping the $770 million helicopter deal

Record ID: 1375106

  • Title: ITALY/INDIA: Opposition, Bharatiya Janata Party (BJP) says Indian authorities should probe into the scandal-hit deal with Italian defence group Finmeccanica's AgustaWestland unit, and not to evade questions by scrapping the $770 million helicopter deal
  • Date: 2nd January 2014
  • Summary: NEW DELHI, INDIA (JANUARY 2, 2014) (ORIGINALLY 4:3) (ANI - NO ACCESS BBC) (SOUNDBITE) (English) DEFENCE EXPERT, BHARAT VERMA, SAYING: "Very few people, few companies make helicopters in the world. If you are going to blacklist everybody and these companies are groups of companies, secondly they are interlinked all over Europe and America, therefore you cannot get spare parts for your helicopters. Now who is taking the money? It is the Indians who are corrupt. Who is taking the bribes? It is the Indians, but nothing is happening to them." BANGALORE, KARNATAKA, INDIA (FILE - FEBRUARY 5, 2013) (ORIGINALLY 4:3) (ANI - NO ACCESS BBC) VARIOUS OF HELICOPTER LANDING DEMONSTRATION FLIGHT OF HELICOPTER
  • Embargoed: 17th January 2014 19:41
  • Keywords:
  • Location: Italy, India
  • City:
  • Country: Italy India
  • Topics: International Relations,Defence / Military
  • Reuters ID: LVA50QG9QMF2202RS7CH6JUAOZB4
  • Aspect Ratio: 4:3
  • Story Text: India's main opposition party, the Bharatiya Janata Party (BJP) on Thursday (January 2) said the country's authorities should launch a probe into the scandal-hit deal between the government and Italian defence group Finmeccanica's AgustWestland unit, instead of evading questions on the matter.
    India cancelled the deal on what it termed a breach of integrity over the scrapped $770 million helicopter deal, but agreed to take part in an arbitration process.
    The government froze payments for the 12 AW101 helicopters after Finmeccanica's then chief executive was arrested in February for allegedly paying bribes to secure the deal, embarrassing the New Delhi government before parliamentary elections due by May 2014.
    Opposition member of parliament and lawmaker, Ravi Shankar Prasad, said the government must take the onus of unearthing the concrete facts linked to this deal.

    "The BJP would like to reiterate that even though AgustaWestland deal has been cancelled, we would like a proper investigation into the role of middlemen. Who paid whom, who shielded whom must be explained," he said.
    India's Defence Minister, A.K. Anthony, has said he did not believe AgustaWestland's denial that it paid bribes to swing the deal.
    Anthony had a meeting with Indian Prime Minister Manmohan Singh hours before the latest decisions were announced.
    Defence expert Bharat Verma said that termination of the contract was not a wise move, as it could prove detrimental to the availability of defence supplies in India, which is not self-reliant in manufacturing defence equipments and aircrafts.

    "Very few people, few companies make helicopters in the world. If you are going to blacklist everybody and these companies are groups of companies, secondly they are interlinked all over Europe and America, therefore you cannot get spare parts for your helicopters," he said.

    "Now who is taking the money? It is the Indians who are corrupt. Who is taking the bribes? It is the Indians, but nothing is happening to them," he added.
    Indian defence deals have been hit by a number of corruption allegations over the past two decades but a Defence Ministry spokesman said this was the first cancellation of a major deal.
    Paying or accepting bribes are prohibited by India's defence procurement rules.
    The government can cancel a contract if an integrity pact in the rules is violated, and the seller has to forfeit any security money it deposited as a bidder.
    India's Federal Auditor said in August the ministry had initially stipulated that the helicopters should be able to fly to an altitude of 6,000 metres (19,685 feet), which meant that AgustaWestland could not compete since the AW101 was certified to fly only to 4,572 metres (15,000 feet).
    India took delivery of three of the helicopters before the deal was stalled but the Defence Ministry spokesman said the fate of those aircraft was "uncertain".
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