Wednesday, April 25, 2012

Yet another probe ordered by Defence Minister!

In the series of often unyielding probes, the Defence Ministry has ordered another probe into VVIP choppers deal. The move seemed to be prompted by a reports in Italian newspaper reproduced by an Indian newspaper.

These 12 AW-101 helicopters from Augusta Westland have been purchased under a Rs. 3,500 crore deal signed in 2010 to replace the aging Mi-8 choppers with the IAF presently.   


Ministry of Finance had objected to the costs of the machines but it gave its nod to the deal following security concerns raised by the Special Protection Group (SPG) and IAF. The choppers will join the Communication Squadron of the IAF.

Here is the statement issued by the Defence Ministry-

ANTONY ASKS FOR FRESH REPORT ON VVIP CHOPPER DEAL

The Defence Minister Shri AK Antony today directed his ministry officials to get a fresh report from the Indian Embassy in Rome following a media report alleging malpractices in the procurement of 12 helicopters for the VVIP Communication Squadrons of the Indian Air Force from Ms. Agusta Westland.

There were media reports also in February 2012 about investigations undertaken by Italian authorities into alleged unethical dealings by M/s Finmeccanica Italy. Following this, information was sought by MoD from the
 
Indian Embassy in Rome. The Indian Embassy reported that Italian authorities were conducting preliminary investigations on allegations of financial malpractices occurring within Finmeccanica and its subsidiaries in general. There was no specific probe being conducted on India-related transactions. There is no clear indication at this stage whether the India related deal would be probed on the strength of preliminary investigations.

It may be recalled that the contract for the procurement of the helicopters contains the standard provisions against use of undue influence and employment of agents and payment of agency commission. A Pre-Contract
 
Integrity Pact has also been signed between Agusta Westland and MoD.

Any such complaint or allegation received will be investigated and the contractual provisions invoked, in case any wrong doing is established, in addition to action that may be required under law.

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