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AgustaWestland finally loses contract in India

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The Ministry of Defence of India on October 21 AgustaWestland finally notified its intention to terminate the contract to supply 12 AW-101 helicopters for the Indian government to prichinine committed offenses and suspicions of corruption. The total amount of the contract is estimated at 750 million euros. Contract other than helicopters themselves suggested a five-year comprehensive maintenance and logistical support, and training for pilots and maintenance personnel.

Anglo-Italian helicopter manufacturer, a subsidiary of Finmeccanica, the Indian authorities have given 21 days to respond to the notice, which the Justice Department approved the India and the General Prosecutor's Office.

Indian authorities accuse of violating the AgustaWestland agreement honest behavior, which is signed by all suppliers of equipment, order houses the Ministry of Defence.

One of the terms of the agreement between the parties was the lack of involvement of any middlemen or agents in carrying out the transaction. In case of violation of this paragraph the contract may be terminated at any stage, even after his execution.

According to Indian officials, it also gives the Ministry of Defence of India entitled to receive compensation from the provider, in addition to its costs of participation in the tender.

February 12, immediately after the arrest of two leaders in Italy Finmeccanica and AgustaWestland, respectively, the Ministry of Defence of India has decided to suspend the execution of the contract from 2010

The then head of AgustaWestland Bruno Spanolini, and Giuseppe Orsi (Executive Director of Finmeccanica) have been detained in connection with the statements that certain individuals still playing the role of mediators and Indian officials handed out bribes worth about $ 51 million to get this contract.

Affair has become central Bureau of Investigation of India, and on March 14 the former head of the Indian Air Force SP Tyagi and 11 others, three of whom are his relatives, were charged with fraud, corruption and conspiracy.

Tyagi as the rest of the detainees did not plead guilty and denied involvement in the crimes around the contract for the supply of helicopters.

However, at the moment in Italy is already a lawsuit against the leaders of AgustaWestland and Finmeccanica, while CBR restore order in India.


AgustaWestland AW101 VVIP for India | www.flightglobal.com

More recently, the Swiss arrested one of the alleged middleman. It appeared to be an American of Swiss origin Hashke Guido, at the moment he is awaiting extradition to Italy. According to the investigation, Giuseppe Orsi used the services of intermediaries Europeans Carlo Heros, Christian Michel and Guido Hashke to bribe Indian officials.

Meanwhile, October 4, at AgustaWestland has received official notification of Defense of India's intention to terminate the contract, despite the fact that three helicopters have already been transferred to India in December 2012, and the cancellation of all further payments on the grounds that the provider has violated a bilateral agreement .

According to reports, the Indian side has paid about 30% of the total contract value, mainly as a down payment.Two regular payment for March and June 2013, were not committed.

While the MoD India is determined to terminate the contract is not clear what they will do with the put three helicopters and 255 million euros already paid to suppliers. One of the options under consideration - to return the helicopter and recover the entire amount from AgustaWestland. The other - leaving helicopters and seek some compromise amount.

Also under consideration is a ban on further activity of AgustaWestland and Finmeccanica, even in India.

Regardless of the outcome, to address these issues will be far from easy, and it may take years. According to Amit Koushisha, the former CFO of Defense of India, viditsya unlikely outcome, in which both parties are satisfied.

Meanwhile, 24 October, representatives of Sikorsky said that would be willing to put their Indian Air Force helicopters.

The company also took part in the tender, offering a model S92 Super Hawk, however, by testing, the Indians preferred model AW101. The American company then expressed bewilderment at the choice of the Italian machine. According to Sikorsky Aircraft, its helicopter showed the best performance.

"If we were approached by the Ministry of Defence, we will be more than willing to provide solutions. Especially, cabins and other parts of the S92 is being manufactured in India, "- said the Oct. 24 Air Vice-Marshal retired Arvind Walia - the head of the South Asia division of Sikorsky.

http://periscope2.ru/2013/10/29/7805/
 
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Well well well....
definitely a very good decision. Now the defence contractors will be more inclined to follow the lakes down procedure than bribing the officials as an easy way.

But this will certainly delay many other defence contracts as many will take this as false route to reestablish their claim in a lost contract case.
 
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so whats that mean??whats the future of the three helos already delivered??and are we getting 30% of total payment back??

by the way,I will really hate to see Black Shark heavy torpedo not in service by IN.
 
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How difficult is it for HAL to modify or create a 3 engine ALH for the VVIP's?? ALH has already proved itself for its operations at high altitudes. Mean while they can use the MI-8 or Mi-17's.
 
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