Finmeccanica’s former boss jailed for graft in VVIP chopper deal with India

Italian prosecutors had requested jail terms of six years and five years for Orsi and Spagnolini, respectively, news agency ANSA reported.

By: Express News Service | Milan | New Delhi | Updated: April 9, 2016 5:03 am
vvip chopper deal, Giuseppe Orsi jail, Giuseppe Orsi chopper deal, agustawestland deal, vvip chopper graft case, Finmeccanica boss jail, Finmeccanica chopper deal, india vvip chopper deal Giuseppe Orsi attends a convention in Rome December 18, 2012. (Source: Reuters/Files)

Italian defence and aerospace major Finmeccanica’s former chief Giuseppe Orsi has been sentenced by the Milan appeals court to four-and-a-half years in jail for false accounting and corruption in the sale of 12 VVIP choppers to India for over Rs 3,600 crore.

In the ruling, which overturned a previous court order of 2014 that had given Orsi reprieve in connection with the corruption angle, former CEO of Finmeccanica’s helicopter subsidiary AgustaWestland, Bruno Spagnolini, was also handed a four-year prison term by the court.

According to officials in the Ministry of Defence, Orsi’s sentencing will strengthen India’s case against the company in the International Court of Justice (ICJ), where the two are locked in an arbitration battle.

In May 2014, after an Italian court allowed India to recover Rs 1,818 crore worth of bank guarantees from banks in Italy, AgustaWestland approached the ICJ and named former Supreme Court justice B N Srikrishna as an arbitrator. India appointed Justice B P Jeevan Reddy as the second arbitrator. In September 2014, when the two sides did not agree on a third arbitrator, the ICJ appointed Professor William Park to resolve the dispute.

“The Milan court’s decision strengthens India’s case in the arbitration court,” a Defence Ministry official told The Indian Express.

The Indian Express was the first to report the scandal and had detailed the alleged nexus of middlemen involved in the deal in a series of reports.

Italian prosecutors had requested jail terms of six years and five years for Orsi and Spagnolini, respectively, news agency ANSA reported.

Though Finmeccanica has refused to say anything on the ruling, saying it pertained to former executives, top company officials told PTI that the firm “has changed completely”.

“The company has undergone deep changes… it is a different company now,” an official said. “It has changed its top management and its organisation.”

The lawyers of both the accused have said that they will go in for an appeal.

The CBI and the Enforcement Directorate are still probing the case in which former Indian Air Force chief S P Tyagi and his cousins are alleged to be the beneficiaries.

The ED has booked Tyagi, his family members, European nationals Carlo Gerosa, Christian Michel and Guido Haschke, four firms — Finmeccanica, AgustaWestland, Chandigarh-based IDS Infotech and Aeromatrix — two companies based in Mauritius and Tunisia, a few other firms and unknown persons as per the CBI’s criminal complaint.

The ED had attached five flats in and around New Delhi in the name of Tyagi’s cousins in connection with its money laundering probe.

The agency, in its order issued against the Tyagi brothers — Sanjeev, Sandeep and Rajeev — had said late last year that its investigations found that the “proceeds of crime” were allegedly used by them in the acquisition of these properties.

Both Orsi and Spagnolini were accused of international corruption and false invoicing in relation to bribes exchanged for the contract with India.

Both were cleared on charges of committing international corruption at the first-instance trial in 2014 but convicted of false invoicing and sentenced to two years in prison.

In Italy, criminal sentences are not usually considered definitive until the appeals process has been exhausted.

Both appealed against the conviction, while the prosecution appealed against the acquittal on the corruption charge.

On January 1, 2014, India scrapped the contract with Finmeccanica’s British subsidiary AgustaWestland for supplying 12 AW101 VVIP choppers to the Indian Air Force over alleged breach of contractual obligations and charges of paying kickbacks to the tune of Rs 423 crore by it for securing the deal.

In view of the corruption charges, India has also barred Finmeccanica and its group companies from participating in any new programme of the Defence Ministry.

[With PTI inputs]

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  1. I
    indian
    Apr 9, 2016 at 1:29 am
    Hard to believe no politician from the previous government was involved
    Reply
    1. M
      Maniktripathy
      Apr 9, 2016 at 5:22 am
      And in Banana republic India, No one is guilty and all this money was paid to Italian nationals...dia is changing and "Aache din" on its way and it shows that even when govt. changes, no one is convicted of corruption.....Jai Hoi....
      Reply
      1. A
        Asma
        Apr 9, 2016 at 4:31 am
        People giving are jailed, but people receiving are free ! Incredible India !!
        Reply
        1. D
          Deshu
          Apr 9, 2016 at 5:13 am
          Can India learn any lesson from former Finmeccanica’s former boss jailed for graft in VVIP chopper deal with India.Never blame Congress/DMK/ NCP/ TMC/SP every time. All political parties are sailing in same boat of corruption. Nothing is going to change in India drastically till corrupt Politicians rule and fool us...Narendra Modi,Arvvind Kejriwal and Anna Hazare may talk on loudly on uprooting corruption even that matter all corrupt and dishonest leaders but when it comes to reality nothing is done on corruption in India and no one jailed except Lalu Prasad that too he is out.Corruption issue rises during election and ends with after result of election is out. . BJP and AAP are example. We need one more new Anna Hazare who will fight till end and not leave it half hearted as seen in r/o old Anna Hazare.One thing is sure that India is more tolerant country in world towards corruption.
          Reply
          1. A
            avi
            Apr 8, 2016 at 10:19 pm
            Why no recipient of bribes connected with this deal been jailed in India ???
            Reply
            1. K
              Kaliyug
              Apr 9, 2016 at 12:27 am
              Dont believe this joke, such things do not happen in the West, they go to a place called Jail that is a exclusive country club. Italy benefited out of this deal and many people from Italy found gainful employment, more Media coverage than actual punishment. In India the crooks are seldom punished, you think Italy needs to punish its citizens for Indian corruption?
              Reply
              1. C
                Col S
                Apr 8, 2016 at 11:28 pm
                Bribed WHOM?Indians? No Indian convicted? Three cheers for CORRUPTION and OUR GOVERNANCE. ALL are sheltered and PROMOTED.
                Reply
                1. A
                  ashok
                  Apr 8, 2016 at 7:38 pm
                  Compare this with the saga of Bofors in India.
                  Reply
                  1. H
                    HILARY
                    Apr 8, 2016 at 4:07 pm
                    A Chief Marshal Tyagi need not bother. The CBI and the enforcement directorate will take at least another twenty years before they file a chargesheet. By then the Air Chief Marshal would have left this world.
                    Reply
                    1. M
                      Mayur Panghaal
                      Apr 9, 2016 at 2:16 am
                      A key revelation of this scam was....Chief of Indian Air Force recd 70 crore cash kick backs via his relatives in the heart of Delhi !!! Yes,in cash !!! lt;br/gt;And few cronies start screaming 'desh drohi ' as soon as fingers are raised on any defence person as if he is jesus christ reincarnation.lt;br/gt;Nobody gets a blank cheque !! Nobody !! If you want to live in a stable and just society,NObody gets a blank cheque !! BJP and Cong shd stop misleading ppl by their holy cow atude about def personnel.lt;br/gt;Let BJP conduct an investigation into retired lives of ex high ranking def personnel.a shocker will be in store for the country...even bigger than amitabh bacchan.
                      Reply
                      1. P
                        pradeep
                        Apr 9, 2016 at 5:59 am
                        india shold fight tooth and nail ,and modi can do that,for getting poor orsi out of this trouble he has landed in .after all india are the worlds b ambador for corruption'
                        Reply
                        1. R
                          Raghu Kashyap
                          Apr 9, 2016 at 2:10 am
                          congress involved in the corrupt deal must be jailed. It is impossible that no indian congress chor is not the king pin in bribes. congress has mastered the art of destroying all evidence while looting.
                          Reply
                          1. S
                            sup
                            Apr 9, 2016 at 4:29 am
                            When will Sonia hi be jailed ?
                            Reply
                            1. S
                              Suresh Iyengar
                              Apr 9, 2016 at 5:46 am
                              Now that Italian government have taken punitive action on the bribe giver BJP will make sure at least some small player is sent to jail. BJP will take credit for acting against corruption. Later supreme Court will squash the verdict and let the small player. This way every one can feel happy that something has been done about corruption.
                              Reply
                              1. P
                                Prateik
                                Apr 8, 2016 at 4:52 pm
                                The 'bribe giver' Finmeccanica’s former chief Giuseppe Orsi has been sentenced.lt;br/gt;Now the 'Bribe accepter' whose husband was also involved with Bofors scam needs to be sentenced.
                                Reply
                                1. P
                                  Prateik
                                  Apr 9, 2016 at 5:22 am
                                  This shows the Indian Consution is weaker than the Italian consution. Wrongdoers get punished in Italy but equally responsible Indian counterparts are still roaming free. Indian Consution is slow outdated and lacks vision
                                  Reply
                                  1. I
                                    Indian
                                    Apr 9, 2016 at 3:37 am
                                    The LOOT PAYER is in JAIL in Italy. ......... The LOOT RECEIVERS are FREE in INDIA even after WE INDIANS elected Mr MODI led BJP to power in Apr 2014. .................. Mr MODI led BJP must throw LOOTERS in JAIL or be prepared to be reduced to 45 MPs alongside CONGRESS in Parliament Election 2019.
                                    Reply
                                    1. A
                                      Augustus
                                      Apr 9, 2016 at 1:14 am
                                      This is the Western culture Indian's should learn, now let's see how many CEOs will land in jail after Panama Papers or may be Modi will come up with a much more better version of Fair and Lovely
                                      Reply
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