New Delhi: A shaken Manmohan Singh government on Wednesday ordered a probe by the Central Bureau of Investigation (CBI) into 2010 $750 million (Dh2.75 billion) deal with an Italian firm for supply of 12 VVIP helicopters.
Reports that the CEO of the Italian defence giant Finmeccanica was arrested for allegedly offering bribes in India to land a contract for the sale of 12 AgustaWestland helicopters has put the government on the backfoot and given enough ammunition to the opposition to gun for the government.
Three helicopters have already been delivered by the Italian firm. It has in return received 30 per cent of the contractual amount.
“We have requested CBI for an early inquiry. I can assure you that the moment we get a report from CBI we will take strongest action provided in the integrity pact... that includes cancellation of the contract and blacklisting the companies. But before CBI’s report, I don’t want to jump to any conclusion,” Indian defence minister A.K. Antony said, adding that the government cannot allow corruption in defence deals.
“We are examining everything. If terms have been violated, we will take the strongest action. We are not bothered about who they are or how big they are,” Antony said.
The opposition, however, has made it clear that they will not wait until the CBI report saying why did the government not initiate an inquiry in the last one year that the deal was being investigated in Italy.
Ravi Shankar Prasad, chief spokesman of the principal opposition Bharatiya Janata Party (BJP) said that his party held the prime minister and UPA chairperson Sonia Gandhi accountable and would question them in parliament.
“There was one gentleman Ottavio Quattrochhi from Italy who was involved in the Bofors scam. Several attempts were made to protect him. This helicopter company is also from Italy. Was this a factor in no probe being done in the matter for the past one year?” Prasad questioned, indirectly hinting at Sonia Gandhi’s Italian origin. Bofors scam took place in mid-1980s when kickbacks were given in a deal for artillery guns during the regime of Sonia’s husband Rajiv Gandhi.
The BJP spokesman also demanded explanation from the defence minister. “Mr Antony said there was no information. Did he write to the Italian defence minister asking for it? Did the government summon the Italian Ambassador for quick information? Was any senior official sent to Italy to seek information?” Prasad asked.
“Those who are the beneficiary of the kickbacks, their names must be disclosed,” Prasad said and added, “The UPA finds a way to take bribes in everything in this country.”
Arun Jaitley, leader of opposition in the Rajya Sabha, also lashed out at the government for its inaction so far. “The Italian government caught the one who gave the bribe. Till when will India hide those who took the bribe,” Jaitley questioned, adding that BJP will raise the issue in the upcoming budget session of parliament and will demand an answer from the government.
The ruling UPA’s erstwhile ally Left Front also said they will raise the helicopter deal during in parliament. “I don’t know what the defence minister thinks, but we demand an impartial probe into the chopper deal. We will raise this issue in parliament and the defence minister will have to answer,” senior Left Front leader Sitaram Yechury said.
Another deal for radars meant to be used by the navy with Finmeccanica, worth Rs5 billion has now come under the cloud. Asked about fate of this deal, Antony said that this would also depend on the CBI report on the chopper deal.
The Indian Air Force had asked for modern fleet of helicopters as a replacement for its Mi-17 cargo helicopters. The 12 AgustaWestland helicopters fitted with three engines were meant to be used to ferry president, prime minister and other VVIPs.
