Italy court acquits 2 in copter scam

Milan: An Italian appeals court on Monday acquitted two former Leonardo executives in a bribery case related to a large 2010 helicopter contract with the Indian government.

Giuseppe Orsi, former CEO of the Italian state-controlled defence group previously known as Finmeccanica, and Bruno Spagnolini, former head of its helicopter unit Agusta-Westland, were both cleared of corruption charges, with the court citing a lack of sufficient proof.

In December 2016, Italy’s highest court had ordered a retrial of the case after the former executives had been found guilty on corruption charges related to a 560 million euro contract to supply a dozen helicopters to India.

After Monday’s acquittal, Mr Orsi’s lawyer Ennio Amodio said the decision closed a case “which should have been clear to investigators (from the start)”, adding that the judge found no evidence of corruption, of the passage of money or that Indian officials interfered with the tender.

The bribery case in Italy had resulted in the Indian government cancelling the order and initiating a CBI probe in 2013 into the role of Indian officials.

Copter scam highlighted graft in defence deals
The case, which was popularly known as the ‘chopper scam’, had surfaced after media in Europe hinted at “unethical dealings in helicopter procurement” in 2012. In India, it had brought to the fore alleged corruption in the defence deals.

The money was allegedly changed hands for relaxing flying altitude rules to allow Agusta-Westland bid for India’s order of 12 helicopters for VVIPs in 2010.

When the a global request for proposals was issued, the Indian Air Force had sought to procure helicopters that could fly over 6,000 metre (18,000 feet) — a norm that had taken Augusta out of the race as it could fly only 15,000 feet. However, this requirement was eased by then Air Chief Marshal S.K. Tyagi, leading to allegations of corruption.

In 2013, Italian Police arrested Giuseppe Orsi, CEO of Finmeccanica, parent company of AgustaWestland, as part of bribery investigations into the copter deal. 

Following the arrest, the UPA government cancelled the order and initiated a CBI probe into the matter. CBI registered a preliminary enquiry against 11 people, including Tyagi. In March 2013, CBI registered an FIR against Tyagi and 12 others for alleged criminal conspiracy and cheating in the copter deal.