Scrapping of VVIP Helicopters Deal
A show cause notice has been issued to M/s Agusta Westland, UK on 15th February, 2013 asking them to explain as to why action should not be initiated for cancellation of the Contract relating to procurement of 12 VVIP/VIP helicopters and recovery of the payments made by the 'buyer'. No decision has so far been taken to cancel the Contract. However, the operation of the Contract relating to procurement of VVIP/VIP helicopters has been put on hold and further payments to M/s Agusta Westland in the contract have been stopped.
At present, no contract negotiation is being held with M/s Agusta Westland in any Capital procurement case.
No decision to blacklist the company has so far been taken.
This information was given by Defence Minister Shri AK Antony in a written reply to Shri Gajanan D. Babar and othersin Lok Sabha today.
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VVIP Helicopter SCAM
On the report of arrests of the Finmeccanica Chief, Mr. G Orsi, who was earlier Chief Executive of M/s Agusta Westland and Mr. Bruno Spagnolini, Chief Executive of Agusta Westland Spa, in reference to financial malpractices pertaining to procurement of 12 VVIP / VIP helicopters for Indian Air Force (IAF), the Ministry of Defence immediately requested our Embassy in Rome on 13th February, 2013 to send factual report pertaining to arrests of the Finmeccanica Chief and Chief Executive of Agusta Westland Spa, nature of charges framed and other relevant details, which in turn, took up the matter with the Judge for the preliminary investigation in Busto Arsizio. The Embassy on February 15, 2013 has forwarded the response of the Judge which states that‘the investigations are at a preliminary stage during which, as per Article 329 of the Code of Penal Procedure, all information are covered by secrecy'. It was also added in the response of the Judge that when the 'Secrecy' obligations are over, his Office would be glad to examine a new request from India.
The matter has been referred to the Central Bureau of Investigation (CBI) to conduct an inquiry into the matter. The CBI, after a visit of its team to Italy and on further examination of the documents available, has registered a Preliminary Enquiry (PE) and further investigation is on. Besides, a Joint Team of Ministry of Defence/ Ministry of External Affairs officials was sent to Italy to collect formal inputs and relevant documents as far as practicable from various stakeholders. Based on the recommendation of the team, further necessary action has been initiated. A Show Cause Notice was also issued to the firm. Based on the reply received from them, further notices have been sent to them for additional information and documents.
This information was given by Defence Minister Shri AK Antony in a written reply to Shri A.T. Nana Patil and Shri ArjunMeghwalin Lok Sabha today.
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Vvip Helicopter Deal
Since the reports that had appeared in the media about alleged wrong doing and unethical conduct by M/s Finmeccanica, parent Company of M/s Agusta Westland, UK in connection with the purchase of 12 VVIP helicopters also referred to alleged involvement of a middleman who is said to be a British Consultant, and the fact that the contract had been signed with M/s Agusta Westland, UK, Ministry of External Affairs (MEA) was requested to take up the matter with the Government of UK requesting their cooperation in verifying the allegations and helping us by providing relevant information relating to the alleged involvement of a middleman and/or of any Indian individual/entity. The UK side informed MEA that they have not launched any investigation and are awaiting the results of the Italian investigation in order to ascertain whether any further action needs to be taken.
Presently, there is no proposal to review anti-graft law as applicable in the UK is under consideration of the Ministry of Defence.
All Capital procurements are carried out as per procedure laid down in the Defence Procurement Procedure (DPP). DPP contains provisions of penalties to be imposed if any seller engages any individual or firm, whether Indian or foreign, whatsoever, to intercede, facilitate or in any way recommend to Government of India or any of its functionaries, whether officially or unofficially, for the award of the contract to the seller. These provisions are in place to check the role of middlemen and ensure the highest degree of probity, public accountability and transparency in defence acquisition cases. Besides this, the Pre-Contract Integrity Pact, signed with the vendor, provides for invocation of contractual provisions in case any wrong doing is established in addition to any action that may be required to be taken under the relevant provisions of the Prevention of Corruption Act and the Indian Penal Code.
This information was given by Defence Minister Shri AK Antony in a written reply to Shri TathagataSatpathy and Shri RudraMadhab Rayin Lok Sabha today.