Army involved in another AgustaWestland chopper scam

15 Jun 2013

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The Central Bureau of Investigation (CBI) has launched another probe against helicopter manufacturer AgustaWestland for alleged corruption in the supply of 197 Light Utility Helicopters to the Indian Army.

This is apart from the ongoing probe into the helicopter deal with Italian defence supplier Finmeccanica for helicopters dedicated to VIP transport.

CBI has registered a preliminary inquiry at the behest of the defence ministry after it found that an Army brigadier promised to help AgustaWestland swing the 197-helicopter deal.

The brigadier had allegedly demanded $5 million to swing the deal.

Italian investigators probing corruption allegations against Finmeccanica have found some documents, which show that an Indian Army officer had demanded bribe from the firm.

The information was provided to the defence ministry by the Italian investigators. The ministry forwarded it to the CBI.

Having found prima facie evidence to start investigations, the agency has registered a preliminary enquiry and might soon call the officer in question for examination. According to reports, the investigation agency needs to establish the nature of the crime before registering a case.

The Army wanted to purchase the light utility helicopters to strengthen its 'Cheetah' fleet; but the deal is now in limbo.

AgustaWestland has denied any wrongdoing and has tried to prod the Indian government to pay for three helicopters it has already delivered as part of the deal, after the government froze payments in February.

The helicopter maker is also embroiled in the bribery scandal involving former Indian Air Force chief, retired Air Marshal S P Tyagi, and his relatives.

Tyagi, AgustaWestland, and its distributor Finmeccanica are among the 13 accused in the CBI case on the alleged payment of a Rs362 crore bribe to swing a 12-helicopter deal in favour of the Anglo-Italian company.

Finmeccanica has so far declined to comment. A spokesman for AgustaWestland said the company had received no communication from Indian authorities concerning the probe.

Defence Minister A K Antony is reportedly on the verge of blacklisting AgustaWestland from doing business in the country, at a time when India has emerged as the world's largest importer of defence equipment.

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