No arbitration in AgustaWestland deal: Antony

[FOX80]

SOURCE: PTI

There is “no question” of arbitration in the Rs.3,727-crore deal with AgustaWestland for VVIP choppers, Defence MinisterA.K. Antony said Monday, making clear government’s opposition to the company’s move for such a course. “There is no question of arbitration,” Antony told reporters here. “A show-cause notice has been given, we are waiting for a response,” Antony said. Facing the threat of the deal being cancelled, AgustaWestland Nov 20 nominated retired Supreme Court Judge B.N. Srikrishna on its behalf for arbitration.

AgustaWestland officials, the same day, met defence ministry officials to present their case and are learnt to have conveyed there was no wrongdoing in the deal. The ministry, earlier this month, extended by 15 days the deadline set for AgustaWestland, the Britain-based subsidiary of the Italian conglomerate Finmeccanica, to reply to the show-cause notice issued Oct 21 for cancelling the deal for supplying 12 AW-101 VVIP helicopters to the Indian Air Force (IAF). Sources said the Anglo-Italian company was asked to give a written reply to the show-cause notice by Nov 26. Defence ministry officials have maintained there was no cause for arbitration. They have said the company has been accused of violating the integrity pact.


Antony earlier accused the company of violating its contractual obligations. While sources say a cancellation of the contract was likely, the ministry’s final decision will be known after the company submits its written reply. India concluded a contract with AgustaWestland in February 2010 for the 12 helicopters, three of which have already been delivered to the IAF. However, following allegations of kickbacks against top officials of the Anglo-Italian firm, the contract for VVIP choppers was frozen. The helicopters were for the IAF’s elite Communication Squadron which ferries the president, the vice president, the prime minister and other VVIPs. The Comptroller and Auditor General slammed the defence ministry and the IAF for deviations from procedures in procurement of the choppers.

 

[FalconsForPeace]

India's AW101 Contract Faces Cancellation

Cancellation of India’s contract to buy 12 VVIP helicopters from AgustaWestland appears imminent, despite the fact that the helicopter-maker has until Nov. 26 to plead its case with the Indian Defence Ministry, according to MoD sources.

However, while India wants to send a strong message against corruption, going so far as to blacklist AgustaWestland is not the preferred option among bureaucrats in New Delhi, an MoD source said.

AgustaWestland is accused of using corrupt practices to win the contract in 2010. The Indian government halted the contract to buy 12 AW101 helicopters this year after Giuseppe Orsi, who was CEO of AgustaWestland at the time of the contract before becoming CEO of parent company Finmeccanica, was arrested in Italy and charged with paying bribes to secure the Indian deal.

New Delhi stopped payments on the contract and referred the matter to the Central Bureau of Investigation. The corruption charges are under investigation separately in Italy and India. Orsi has denied wrongdoing.

AgustaWestland has until Nov. 26 to reply in detail to an MoD-imposed show-cause notice.

The MoD said the contract with AgustaWestland includes specific contractual provisions against bribery and the use of undue influence.

In addition, AgustaWestland signed an Integrity Pact effective for five years from the date of signing, or until the contract is executed, whichever is later. The penalties include forfeiture of the earnest money and performance bond, cancellation of the contract without giving any compensation, recovery of all the sums already paid with interest, cancellation of any other contracts with the bidder and debarment from entering any bid with the government for at least five years, which may be extended.

Past blacklisting of six overseas defense companies on charges of corruption have adversely affected several weapon projects, especially the artillery purchase of 155mm/52-caliber guns. The blacklisted companies include Denel of South Africa, Singapore Technologies, Israel Military Industries and Rheinmetall of Zurich.

While the Indian Army privately says that blacklisting is a retrograde step, analysts feel a strong message should always be sent against corruption.

“You cannot damn the government for not taking any action to deal with instances of corruption and damn it when it does,” said Amit Cowish, a retired MoD bureaucrat. “What action is appropriate under the circumstances is a matter of opinion, and there could be an endless debate on this. It would be unfair to assume that whatever action the Ministry of Defence takes is going to be inappropriate. What is wrong with the government sending a strong message that it is serious about combating corruption?”

Blacklisting AgustaWestland would hit the company, which is also taking part in the Indian Navy’s tender for purchase of 56 naval utility helicopters and another tender for the purchase of 14 medium-lift helicopters for the Coast Guard.

AgustaWestland, meanwhile, has appointed a former Supreme Court Judge, Justice B.N. Srikrishna, to represent the company in arbitration proceedings.

AgustaWestland has delivered three helicopters to India, but three others ready for delivery have instead been sold elsewhere, Alessandro Pansa, the CEO of AgustaWestland parent Finmeccanica, told analysts on Nov. 8. Pansa did not name the new customers for the helicopters.

In response to a global tender in 2006, AgustaWestland’s EH-101, later known as the AW-101 helicopter, beat the Sikorsky S-92.

During trials, the S-92 could not meet all the Staff Qualitative Requirements as the US helicopter did not have a suitable system to warn the pilot about any missiles fired at them, could operate only up to 4,500 meters and could not hover high above the ground.

The AW-101 did fulfill all the requirements, said an MoD source.

If the AgustaWestland contract is canceled, the chances of Sikorsky being considered as the preferred choice is not likely, the MoD source said, adding that India could instead purchase Russian Mi-17V helicopters, which it has already contracted.

http://www.defensenews.com/article/...llation?odyssey=mod|newswell|text|FRONTPAGE|p

 

[Sergi]

Whoever involved from indian side should be treated for the charges of treason

 

[sancho]

Whoever involved from indian side should be treated for the charges of treason

Not sure if I would go that far, but there must but a way harder stand on any Indian person that is involved in bribery cases, especially of the forces. However, a person is innocent until proven guilty and that is not the case so far, in fact there is not even a proof that the selection was effected. That's why these media reports are more sensational, than speaking the truth.

 

[Sergi]

Not sure if I would go that far, but there must but a way harder stand on any Indian person that is involved in bribery cases, especially of the forces. However, a person is innocent until proven guilty and that is not the case so far, in fact there is not even a proof that the selection was effected. That's why these media reports are more sensational, than speaking the truth.

Person is innocent until proven guilty thats why I said tried ( ops i do write treated . my bad )for charges and not hanged immediately
Making this provision will help alot cause treason evenif not proved is good enough to affect you socially. Although I am sure that would not affect politicians

 

[sancho]

Person is innocent until proven guilty thats why I said tried ( ops i do write treated . my bad )for charges and not hanged immediately
Making this provision will help alot cause treason evenif not proved is good enough to affect you socially. Although I am sure that would not affect politicians

But then again, I guess military personnel would be jugged by military courts, while civillians at public once and that alone makes a difference too. Imo the forces and MoD still act to easy on their personnel. Only if the results are bad, you can counter briberies, no matter if small or big.

 

[anant_s]

But then again, I guess military personnel would be jugged by military courts, while civillians at public once and that alone makes a difference too. Imo the forces and MoD still act to easy on their personnel. Only if the results are bad, you can counter briberies, no matter if small or big.

Don't want to take names but convicted ex ACM might probably be tried in Civil Courts as any other ordinary citizen.
I hope the investigation is quick and decisive ( we've seen agencies lingering on the cases Bofors et al) and should make it a model for all people and companies involved on how to do transactions in India in a fair & ethical manner.

 

[he-man]

sab chor hain
ex air chief should be ashamed of himself