India helicopter deal with Italy firm 'may be cancelled'

[MINK]

India helicopter deal with Italy firm 'may be cancelled'

India's defence minister has said he would "cancel the deal" with Italian aerospace and defence firm Finmeccanica if there was any corruption in the purchase of helicopters from the firm.

AK Antony said the government would blacklist and take legal action against any company found to have paid a bribe.

India ordered an inquiry into the $752m (£481m) 12-helicopter deal after the firm's chief Giuseppe Orsi was arrested in Milan on Tuesday.

Mr Orsi has denied any wrongdoing.

The Italian authorities have been investigating him for bribery and embezzlement for several months.

Mr Antony told reporters on Wednesday that the government did not care "who the companies are, or how powerful".

"Nobody will be spared. If a company violates the conditions, they are liable for criminal action.

"We will blacklist them - we cannot allow corruption in defence deals," he said, adding that "strong action" would be taken as soon as they received a report from the Central Bureau of Investigation (CBI).

Meanwhile, the former Indian Air Force chief SP Tyagi has denied allegations that he or any of his relatives were paid bribes to secure the deal. Italian investigators have named Mr Tyagi in a preliminary inquiry submitted to an Italian court.

Italy has also issued arrest warrants for two people living in Switzerland. The head of Finmeccanica's AgustaWestland business, Bruno Spagnolini, has been placed under house arrest.

India signed the agreement in February 2010 to purchase a dozen three-engine AW-101 helicopters from the Italian company for an elite squadron of the Indian Air Force which ferries around the president, the prime minister and other VIPs.

Reports say that three of the 12 helicopters have already been delivered to India and the rest are expected to arrive by the middle of 2014.

The ruling Congress party has been hit by a series of damaging corruption scandals recently and the opposition has made regular calls for Prime Minister Manmohan Singh to resign.

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

BBC News - India helicopter deal with Italy firm 'may be cancelled'

 

[livingdead]

ah right, bribes must have been paid for most of our deals except ones with USA. How many will you blacklist.

 

[Bang Galore]

ah right, bribes must have been paid for most of our deals except ones with USA. How many will you blacklist.

Well, he is St.Antony after all. He has a reputation to protect.

 

[Norboo]

First, cancel the bl00dy Kong Grass!

 

[Iggy]

Did we recieved the first one of the Helicopter?? After cancelling the order where will we go for the spare parts?? BTW how much amount did we paid already??

 

[Rocky25]

Court Marshall those who received the bribes!

 

[IND151]

^^ exactly

 

[IND151]

Did we recieved the first one of the Helicopter?? After cancelling the order where will we go for the spare parts?? BTW how much amount did we paid already??

that's the thing we should worry about. spare part problem will affect the performance of the helis.

if we cant get spare parts the we will be forced to resort to cannibalization(parts).

I came acrros an report telling adverse effcts of Cannibalization(parts).

This is one para from the concerned report

Cannibalization have several adverse impacts. They increase maintenance
costs by increasing workloads, may affect morale and the retention of
personnel, and sometimes result in the unavailability of expensive aircraft
for long periods of time. Cannibalizations can also create unnecessary
mechanical problems for maintenance personnel. As shown by a recent
survey, over half of all aircraft maintenance personnel work more than 50
hours a week (some work 70 hours or more) compared with the average of
40 hours. A Navy study notes that the additional work generated by
cannibalizations adversely affects morale and lowers reenlistment rates.
However, because the services do not keep track of all the maintenance
hours they spend on cannibalizations, they cannot assess all of the
consequences.

This a GAO report

 

[Iggy]

that's the thing we should worry about. spare part problem will affect the performance of the helis

What about the money we already paid?? Now we have to go to black market and pay double the amount for spareparts.. Or may be we can sell the Helis to a third country..

 

[IND151]

What about the money we already paid?? Now we have to go to black market and pay double the amount for spareparts.. Or may be we can sell the Helis to a third country..

that's true too

 

[Bang Galore]

Court Marshall those who received the bribes!

The finger is not being pointed at politicians yet, it seems to be at some relatives of former ACM Tyagi. May not be a easy case to crack.

 

[anant_s]

I would really welcome scrapping of deal if wrongdoing is established either by Italian or Indian investigation. The only worry that i have is that this should not affect other deals in pipeline. India has already lost decade or so owing to lack of funds, blacklisting of vendors etc, any further hiatus will only hurt Indian forces.

 

[Iggy]

Too bad, it was an awesome Helicopter.. Since it is for the VVIPs we can see an immediate acquasition of another Heli

 

[axisofevil]

Sad even Prez Obama did not purchase these Choppers but our corrupt Indian politicans who get rich off the poor deserve such. Wow

 

[Koovie]

self delete