Q. No. 961 Black listing of company involved in VVIP chopper deal

Question: Will the Minister of DEFENCE be pleased to satate :-

(a) whether it is a fact that a Swiss-based middleman who was instrumental in fixing the Indian Air Force’s VVIP chopper deal has confessed that he had met former Air Chief 6-7 times;

(b) whether it is also a fact that he confessed that he paid 12 million Euros to former Air Chief;

(c) if so, the details thereof; and

(d) whether the Ministry has blacklisted the company, apart from putting other bans?

Answer: Minister of Defence (Shri A.K. Antony)

(a) to (c): On the report of the arrests of the Finmeccanica Chief and Chief Executive of Agusta Westland Spa in connection with the investigations in Italy regarding alleged wrong doing and unethical conduct by M/s Finmeccanica, parent company of M/s Agusta Westland, U.K., the CBI was asked on February 12, 2013 to conduct an enquiry into the matter. Further details will be available on receipt of report of CBI.

(d) A Show Cause Notice has been sent to M/s Agusta Westland, U.K. on 15th February, 2013 asking them to explain as to why steps should not be initiated for cancellation of the Contract. The operation of the Contract has been put on hold and further payments to M/s Agusta Westland, U.K. stopped. No decision to blacklist the Company has so far been taken.