India's ministry of defence has initiated steps to cancel its acquisition of
12 AgustaWestland AW101 helicopters, as it sends a senior representative
to Rome to investigate bribery allegations surrounding the deal.
12 AgustaWestland AW101 helicopters, as it sends a senior representative
to Rome to investigate bribery allegations surrounding the deal.
"[The ministry of defence] issued a formal show cause notice to Agusta
Westland of the UK seeking cancellation of contract and taking other
actions per the terms of the contract and integrity pact," the ministry said
in a brief statement. The company has until 22 February to respond, it
adds. New Delhi suspended payments to the manufacturer on 13 February.
Westland of the UK seeking cancellation of contract and taking other
actions per the terms of the contract and integrity pact," the ministry said
in a brief statement. The company has until 22 February to respond, it
adds. New Delhi suspended payments to the manufacturer on 13 February.
It also announced that a senior joint secretary, Shri Bal, has been
dispatched to Rome to investigate the case, in which Finmeccanica
chief executive Giuseppe Orsi was detained by Italian police on 12
February, and AgustaWestland chief executive Bruno Spagnolini was
placed under house arrest. No charges have been brought and both
deny any wrongdoing.
Orsi headed AgustaWestland at the time when the €560 million
($746 million) deal was signed in February 2010.
($746 million) deal was signed in February 2010.
So far, three of the AW101s with VIP roles have been delivered to
India, with the balance to be handed over by the end of 2013.
India, with the balance to be handed over by the end of 2013.
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