This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.guardian.co.uk/business/2013/feb/12/finmeccanica-boss-arrested-corruption-claims

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
Finmeccanica boss arrested over 'corrupt' helicopter deal with India Finmeccanica boss arrested over 'corrupt' helicopter deal with India
(7 months later)
The boss of Italy's biggest defence company, Finmeccanica, has been arrested over allegations he paid bribes to secure a deal to sell 12 helicopters to India.The boss of Italy's biggest defence company, Finmeccanica, has been arrested over allegations he paid bribes to secure a deal to sell 12 helicopters to India.
Giuseppe Orsi, chairman and chief executive of the defence group, was arrested on corruption and tax fraud charges during a dawn raid on his home on Tuesday. He was remanded in custody.Giuseppe Orsi, chairman and chief executive of the defence group, was arrested on corruption and tax fraud charges during a dawn raid on his home on Tuesday. He was remanded in custody.
Bruno Spagnolini, the chief executive of the group's wholly owned Anglo-Italian helicopter company AgustaWestland, was also arrested on the same charges and placed under house arrest.Bruno Spagnolini, the chief executive of the group's wholly owned Anglo-Italian helicopter company AgustaWestland, was also arrested on the same charges and placed under house arrest.
The charges relate to allegations Finmeccanica paid 40m Indian rupees (£500,000) in bribes to secure a €560m (£480m) contract to sell helicopters to India in 2010. At the time of the deal Orsi, 67, was head of AgustaWestland. Police also raided the offices of Finmeccanica and the Milan office of AgustaWestland.The charges relate to allegations Finmeccanica paid 40m Indian rupees (£500,000) in bribes to secure a €560m (£480m) contract to sell helicopters to India in 2010. At the time of the deal Orsi, 67, was head of AgustaWestland. Police also raided the offices of Finmeccanica and the Milan office of AgustaWestland.
The high-profile arrests are the latest in a series of scandals to rock Italy less than two weeks before a general election. Finmeccanica is 30%-owned by the Italian state, and is the country's second-biggest private employer behind Fiat.The high-profile arrests are the latest in a series of scandals to rock Italy less than two weeks before a general election. Finmeccanica is 30%-owned by the Italian state, and is the country's second-biggest private employer behind Fiat.
Italy's prime minister, Mario Monti, said: "There is a problem with the governance of Finmeccanica at the moment and we will face up to it."Italy's prime minister, Mario Monti, said: "There is a problem with the governance of Finmeccanica at the moment and we will face up to it."
India's defence ministry has asked the country's central bureau of investigation to investigate the deal, which included "specific contractual provisions against bribery and the use of undue influence as well as an integrity pact", the ministry said in a statement.India's defence ministry has asked the country's central bureau of investigation to investigate the deal, which included "specific contractual provisions against bribery and the use of undue influence as well as an integrity pact", the ministry said in a statement.
The latest arrests follow at least two other high-profile corruption investigations involving the defence company. Former chairman Pier Francesco Guarguaglini resigned after he was targeted in one investigation that led to criminal charges against his wife, who ran a Finmeccanica unit.The latest arrests follow at least two other high-profile corruption investigations involving the defence company. Former chairman Pier Francesco Guarguaglini resigned after he was targeted in one investigation that led to criminal charges against his wife, who ran a Finmeccanica unit.
Orsi has previously denied any wrongdoing in the case and said he would not resign.Orsi has previously denied any wrongdoing in the case and said he would not resign.
Finmeccanica denied any wrongdoing, and said it was business as usual, according to a statement.Finmeccanica denied any wrongdoing, and said it was business as usual, according to a statement.
India, the world's largest weapons importer, has a history of corruption in defence deals. A multi-million dollar scandal in the 1980s over the purchase of Swedish Bofors artillery guns contributed to an electoral defeat for the then prime minister Rajiv Gandhi.India, the world's largest weapons importer, has a history of corruption in defence deals. A multi-million dollar scandal in the 1980s over the purchase of Swedish Bofors artillery guns contributed to an electoral defeat for the then prime minister Rajiv Gandhi.
Westland, originally a British helicopter manufacturer that merged with Italy's Agusta in 2000, was at the centre of a 1980s political scandal that led to Michael Heseltine quitting as defence secretary in Margaret Thatcher's cabinet. It employs more than 3,000 people at its main UK site in Yeovil.Westland, originally a British helicopter manufacturer that merged with Italy's Agusta in 2000, was at the centre of a 1980s political scandal that led to Michael Heseltine quitting as defence secretary in Margaret Thatcher's cabinet. It employs more than 3,000 people at its main UK site in Yeovil.
Our editors' picks for the day's top news and commentary delivered to your inbox each morning.