India scrapped a $753 million deal to buy helicopters from Anglo-Italian company AgustaWestland following a 15-month corruption investigation and said it’s preparing for an arbitration fight it is seeking to avoid.
AgustaWestland EH101 Merlin (Photo credit: J.Backlund)
The 2010 deal for 12 helicopters from the unit of Italy’s defense and aerospace manufacturer Finmeccanica SpA (FNC) has been terminated “with immediate effect” because of “breach of the pre-contract integrity pact (PCIP) and the agreement,” the Defense Ministry said in a statement in New Delhi yesterday. A former Indian air force chief and about 10 other officials are under investigation over the sale.
Finmeccanica had received notification of a probe in September 2012, and in February India suspended further payments while issuing a so-called show-cause notice seeking AgustaWestland’s defense against bribery allegations. That followed the arrest the same month of a senior Finmeccanica official in Italy on accusations of corruption and tax fraud.
via India Scraps AgustaWestland Chopper Contract on Graft Probe (1) – Businessweek.
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