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AgustaWestland denies corruption charges over India helicopter deal AgustaWestland denies corruption charges over India helicopter deal
(7 months later)
Helicopter manufacturer AgustaWestland is to formally deny corruption claims over its £480m defence deal with the Indian government and insists the contract will stand.Helicopter manufacturer AgustaWestland is to formally deny corruption claims over its £480m defence deal with the Indian government and insists the contract will stand.
The company said work was continuing as normal at its factory in Yeovil, Somerset after Indian authorities issued proceedings that gave the manufacturer until Friday to respond to bribery allegations. Giuseppe Orsi, the chairman and chief executive of AgustaWestland's parent company Finmeccanica, was arrested last week, along with Bruno Spagnolini, the chief executive of AgustaWestland, on corruption and tax fraud charges.The company said work was continuing as normal at its factory in Yeovil, Somerset after Indian authorities issued proceedings that gave the manufacturer until Friday to respond to bribery allegations. Giuseppe Orsi, the chairman and chief executive of AgustaWestland's parent company Finmeccanica, was arrested last week, along with Bruno Spagnolini, the chief executive of AgustaWestland, on corruption and tax fraud charges.
Allegations surrounding the deal first surfaced in early 2012, but the Italian arrests pushed the Indian ministry of defence to suspend further payments to AgustaWestland and to ask its central bureau of investigation to take up the case. Italian prosecutors claim that the deal to supply the Indian air force with 12 AW101 helicopters - so-called VVIP models used to fly heads of state - involved kickbacks and the use of a British middleman, Christian Michel.Allegations surrounding the deal first surfaced in early 2012, but the Italian arrests pushed the Indian ministry of defence to suspend further payments to AgustaWestland and to ask its central bureau of investigation to take up the case. Italian prosecutors claim that the deal to supply the Indian air force with 12 AW101 helicopters - so-called VVIP models used to fly heads of state - involved kickbacks and the use of a British middleman, Christian Michel.
AgustaWestland denies any impropriety in beating competition from US and Russian rivals to sign the deal in February 2010. Three of the 12 helicopters are already in service, with the rest due to be delivered by the end of the year.AgustaWestland denies any impropriety in beating competition from US and Russian rivals to sign the deal in February 2010. Three of the 12 helicopters are already in service, with the rest due to be delivered by the end of the year.
The company said: "AgustaWestland is confident that the full compliance with the relevant laws as well as the good conduct of its past and present senior executives and managers will be demonstrated as soon as practicable."The company said: "AgustaWestland is confident that the full compliance with the relevant laws as well as the good conduct of its past and present senior executives and managers will be demonstrated as soon as practicable."
It also denied reports that Indian authorities had cancelled the helicopter contract. "AgustaWestland clarifies that the Indian ministry of defence has not cancelled the contract but has given notice requesting information within seven days. AgustaWestland is preparing its answers to timely meet the Indian ministry of defence's request."It also denied reports that Indian authorities had cancelled the helicopter contract. "AgustaWestland clarifies that the Indian ministry of defence has not cancelled the contract but has given notice requesting information within seven days. AgustaWestland is preparing its answers to timely meet the Indian ministry of defence's request."
AgustaWestland, which employs more than 3,000 people in Yeovil, has an order book of about £11bn, which includes more than 600 helicopters.AgustaWestland, which employs more than 3,000 people in Yeovil, has an order book of about £11bn, which includes more than 600 helicopters.
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