20121204

VVIP helicopter deal with Italy, Swiss, Indian middlemen


The spy who cam in from Switzerland for an Indian deal -- Italian investigators 

IAF Rubbishes Bribery Charge, To Go Ahead with AgustaWestland VVIP Helo Deal
Our Bureau
Sat, Nov 3, 2012 07:07 CET
AgustaWestland rendering of their VVIP helicopter meant for India.
The Indian Air Force (IAF) intends to go ahead with the purchase of 12 AgustaWestland VVIP helicopters despite the latest string of bribery and corruption allegations which have appeared in an Indian newspaper.
The IAF has rubbished reports of its former pilots being involved in an alleged bribery scandal surrounding the procurement of VVIP helicopters from AgustaWestland.
“The Air Force will go ahead with the deal. We have conducted the transaction with professionalism, procedurally and thoroughly. There is no basis to the media reports,” IAF spokesperson Wing Commander Gerard Galway told Defenseworld.net in a telephonic comment.
The IAF is scheduled to receive its first AW101 helicopter in VVIP passenger configuration within the next 2-3 months.
According to AgustaWestland, the first of 12 choppers is being outfitted as per the Indian order with delivery to be made within agreed schedules.
A section of the Indian media has been reporting on the Italian government’s probe into AW’s parent company, Finmeccanica as part of which the allegation of money laundering in the $650 million Indian deal reportedly surfaced. The reports identified Sanjeev Kumar Tyagi, whom it claimed was a former IAF pilot, as being involved in the deal, a claim denied by the IAF. “On checking our records, we have found no such person --either serving or retired,” the IAF spokesperson said.
Italian police probe names at least 15 people including Guido Haschke and Christian Michel, Praveen Bakshi, the chief officer of Chandigarh-based firm Aeromatrix, Gautam Khaitan, a Delhi lawyer who represents Aeromatrix, and Sanjeev Kumar Tyagi, a Delhi businessman and former air force pilot, as those being investigated.
Aeromatrix, a services company which specialises in aerospace, among others, is owned by Haschke and his partner Carlo Gerosa, is also being investigated.
Praveen Bakshi and Gautam Khaitan have both denied having any knowledge about the deal in strongly worded press releases.
The report adds that taped conversations between the alleged middleman indicate that 10-15 million euros of the commission may have been routed to India.
Following of reports bribery and kickbacks in the Indian VVIP helicopter deal with Italian aircraft-maker AgustaWestland, India is requesting information from the Italian government over the alleged deals.
Earlier in March, Defence Minister A K Antony informed Parliament that “no specific probe is being conducted about India-related transactions” by Italy.
The 12 VVIP helicopter contract had been finalized in March 2010. AgustaWestland had said in statement after the award of the contract, “AgustaWestland, a Finmeccanica company, is pleased to announce that a contract has been signed by the Government of India for the acquisition of twelve AW101 helicopters that will perform government transport duties. The contract, valued at around € 560 million, includes an extensive five year logistic support service and initial aircrew and technician training”.
By Bindiya Thomas
IAF says its ex-pilot not among 3 Indians in VVIP helicopter probe 
INDIA, Posted on Oct 27, 2012 at 09:30pm IST
New Delhi: The Indian Air Force (IAF) has issued a clarification denying that a former pilot is among the Indians named in a bribery case surrounding the sale of VVIP helicopters to the IAF from Anglo-Italian helicopter company AgustaWestland, that is owned by Italian industrial conglomerate Finmeccanica.
Air Force PRO, Squadron Leader Priya Joshi issued a clarification saying, "As per the records held with the IAF, there is no ex- IAF Officer/pilot by the name of Sanjeev Kumar Tyagi as has been mentioned by a media report dated 27 Oct 2012."
Earlier, media reports had carried details of the probe into allegations of bribery and money laundering in the Rs 3500 crore deal wherein Sunil Kumar Tyagi had been named mentioned as a Delhi businessman and former IAF pilot.
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The IAF has issued a clarification denying that a former pilot is among the Indians named in a bribery case surrounding the sale of VVIP helicopters.
Aeromatrix is owned by Swiss-consultant Guido Haschke. Finmeccanica is the parent company of AgustaWestland and is under the scanner after a few arrests were made in Italy in connection with the case.
India’s $1B Deal for Light Helos Faces Cancellation
Nov. 6, 2012 - 07:44AM   |  
By VIVEK RAGHUVANSHI   
The AW101 helicopter was chosen by India in 2009 in a 12-helicopter buy to transport top officials. (AgustaWestland)
NEW DELHI — India’s $1 billion tender to buy 197 light utility helicopters (LUHs) could be canceled for the second time in five years, while Italy’s AgustaWestland may face blacklisting in India if allegations about use of a middleman in the competition are confirmed, according to Indian Defence Ministry officials.
The ministry has delayed making a selection in the competition between Russia’s Kamov and Eurocopter following reports that Italian investigators were probing a 2009 award by the Indian Air Force to Finmeccanica subsidiary AgustaWestland for 12 very very important person (VVIP) helicopters. In the course of this investigation, evidence may have been uncovered that an Indian Air Force brigadier general had sought money from AgustaWestland to revise the technical requirements for the LUH competition.
The Defence Acquisition Council, India’s top procurement body and under the chairmanship of the defense minister, deliberated on the LUH tender at its meetings the week ending Oct. 27, though no details are known.
According to media reports here, documents filed in an Italian court said an Indian Army officer sought money to revise the LUH tender, issued in 2009, to favor AgustaWestland during the initial stages of its evaluation in 2010. The Italian company was dropped for not meeting technical requirements and did not make it to the flight trial stage.
Kamov’s Ka-226T is pitted against Eurocopter AS 550 C3 Fennec.
Calls to AgustaWestland offices were not answered. But the company issued a statement Nov. 1, which it said was in response to Indian press reports on the helicopter sales, that it never tried to “influence the selection or evaluation process” during the VVIP helicopter bid. The company said its relations with the Indian authorities were strictly “institutional.”
The Indian Defence Ministry, through the Foreign Ministry, has asked the Italian authorities to make available to it documents relating to the probe into Finmeccanica. The documents include the name of a serving Indian officer relating to the LUH tender.
“The Ministry of Defence has asked the Italian government and concerned agencies there through MEA [Ministry of External Affairs] to provide the name and relevant documents relating to the alleged involvement of a brigadier in the ongoing process for the acquisition of 197 light utility helicopters for the Indian Army,” the official Defence Ministry release said.
AgustaWestland could be blacklisted by the Indian government if it is found that the Italian company had used a middleman in the defense deals. According to Indian defense procurement law, overseas companies have to sign a statement that there are no middlemen or agents in the program.
“MoD will take strong action against the offenders detected through this probe,” the official release said.
New Delhi has also asked Italy to provide details of the probe it is carrying out into the sale of 12 VVIP helicopters by AgustaWestland after Sikorsky was ejected in the race.
The probe into the India helicopter deal stems from claims of corruption made by Lorenzo Borgogni, a former external relations manager at Finmeccanica who was fired in 2011 after Giuseppe Orsi became CEO and chairman of the company. Borgogni admitted receiving payments worth 5.6 million euros ($7.2 million) from Finmeccanica supplier firms, which was deemed a violation of company ethics.
AgustaWestland had won the $400 million contract to sell 12 helicopters for use by the Indian Air Force to transport top officials, including the president and the prime minister. While the fate of the $400 million deal contracted in 2009 appears to be safe, and first deliveries are expected to take place this year, the Defence Ministry wants to put the LUH program on hold pending the probe into the matter, the ministry source said.
The Indian Air Force and Army need the light utility helicopters to replace aging Cheetah and Chetak helos, which ferry troops and rations to higher reaches of battle areas in the Himalayas, an IAF official said. The procurement of light utility helicopters is behind schedule by more than seven years, and any further delays will affect the ability of Indian defense forces to meet logistic requirements in the higher reaches, the official added.
Tom Kington in Rome contributed to this report.
Sale of Augusta Westland helicopters to the Indian Air Force under scanner 
INDIA, Posted on Oct 25, 2012 at 12:25pm IST
New Delhi: The sale of Augusta Westland helicopters to the Air Force is being probed for possible kickbacks. Italian authorities have reportedly recorded conversations between the India head of the helicopter manufacturer, Finmeccanica, and a middleman.
The deal to purchase 12 VVIP helicopters for Rs 3500 crores is already under a cloud with the Ministry of Defence seeking probe reports from Italian authorities. Italian prosecutors have been investigating a series of corruption charges against Finmeccanica.
They say they have strong proof of the commission paid to middleman Guido Haschke through Mauritius and Tunisia. Swiss-based consultant Haschke was paid 51 million euros to swing the Indian deal. They also claim to have taped conversations between Haschke and some Indian nationals. Haschke and and his partner own a Chandigarh-based services company called Aeromatrix.

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Italian authorities have reportedly recorded conversations between the India head of the helicopter manufacturer, Finmeccanica, and a middleman.
India raises more concern over Agusta deal
The Indian Ministry of Defense is pressing Italy for information concerning possible irregularities in the purchase of 12 AgustaWestland AW101 helicopters.
Published: Nov. 1, 2012 at 6:30 AM
NEW DELHI, Nov. 1 (UPI) -- The Indian Ministry of Defense is pressing the Italian government for information concerning possible irregularities in the department's purchase of 12 AgustaWestland AW101 helicopters.
The request follows requests for information about the ongoing purchase of some 197 light utility helicopters in which an Indian brigadier is suspected of offering to help AgustaWestland seal.
"The Italian government has been requested to provide details of the existence, if any, of any middlemen or any individual or Indian entity in the (AW101) contract," a statement by the Indian Ministry of Defense published on the government's public information website said.
"The Ministry of Defense has asked the Italian government and concerned agencies to provide the name and relevant documents relating to the alleged involvement of a brigadier in the ongoing process for the acquisition of 197 light utility helicopters for the Indian army."
AgustaWestland wasn't shortlisted for the light utility helicopter contract, which now is between Eurocopter and Kamov and for fewer aircraft, around 130.
India and AgustaWestland announced the deal for 12 AW101 helicopters in 2010, saying eight of the aircraft would be used for high-security VIP transport.
The AW101 aircraft are being supplied by AgustaWestland's division in the United Kingdom at a cost of around $724 million. The helicopters will replace Mil Mi-8 helicopters that are near the end of their technical life.
The AW101 deal was signed after a global tendering process involving multiple vendors, information given by Defense Minister A.K. Antony in a written reply to questions in Parliament indicated.
Antony said in April that the contract for the 12 AW101 helicopters contains standard provisions against use of undue influence and employment of agents and payment of agency commission. A pre-contract integrity pact also was signed between AgustaWestland and the Ministry of Defense.
AgustaWestland, a Finmeccanica company, said the AW101 deal includes five years of logistics support and initial training for aircrew and technicians.
The Indian order pushes the number of AW101 helicopters sold around the world to more than 180, to countries including Italy, Japan, Denmark, Canada, Portugal and the United Kingdom, the AgustaWestland statement said.
The Defense Ministry wrote to the Italian government in February and April when the first reports came out about alleged malpractices, the Daily Pioneer newspaper said.
But last week Italian media reports said Italian investigators found a letter by alleged middleman Guido Haschke stating that an Indian brigadier, in charge of the flight trials, had asked for money in January 2010, the Daily Pioneer said.
The brigadier -- not named -- is with the Army Aviation Corps and is posted in Chennai.
Never attempted to influence VVIP helicopter deal: AgustaWestland
Express news service Posted online: Sat Nov 03 2012, 03:29 hrs
New Delhi : Helicopter manufacturer AgustaWestland that is currently under the scanner in an ongoing probe into corruption charges has said it “never attempted to influence” the Indian VVIP chopper deal and said the contract was awarded to them as per laid down rules and procedures.
The company, which is facing a probe by Italian prosecutors on charges of international corruption, said that it followed the rules set up by India to take part in the contract. “The company has never attempted to influence in any way the VVIP programme evaluation and selection process,” a statement issued by the company said.
The chopper manufacturer also denied that it had hired Guido Haschke and Christian Michel as agents for the VVIP deal. As reported, the duo are said to be the middlemen in the Indian deal, as per an investigative report filed by Italian prosecutors.
“AgustaWestland never appointed, formally or informally, Guido Haschke, Mr Christian Michel or any other person as its agents and/or intermediaries in the VVIP programme. Therefore, the company never paid any commission to them,” the company said.
The company, however, did not elaborate on its connections and associations with the two alleged middlemen, limiting its comment that they were not connected to the VVIP programme. As demonstrated by a series of wire taps and phone intercepts that have been presented in Italian courts, the duo were in touch with top executives of the company and regularly discussed the Indian VVIP helicopter contract.
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