India shuts down Finmeccanica orders

Lieuwe de Vries for Veenstra & De Vries Aviation Publishing

India has has decided to postpone all orders of Finmeccanica group companies while an investigation into corruption and briding by it’s employees is underway.

The investigation looks into the procurement of several VIP transport helicopters for the Indian Air Force. Alledgedly, several employees of AgustaWestland have bribed Indian government officials and/or members of the military. In Italy Finmeccanica has managed so settle a similar issue with the Department of Justice. In that case the investigation focused on a former managers of NH-90 builder AgustaWestland and parent company Finmeccanica group.

The ban of Finmaccanica is a devastating blow for the Italians because several of its subsidiaries are providing India with military materiel. India has been ramping up their military spending in order to expand and modernise its armed forces and currently the country is one of the biggest customers in the defense market worldwide. For instance it’s investing heavily in radar equipment and armament for its Navy. The ban also affects companies that work together with the Finmeccanica group, and as such it can also have negative consequences for the French. Because of a stake in Dassault owned by a Finmeccanica subsidiairy, the French company might also be dealt a negative blow as Dassault is in the process of delivering components for its Rafale jets.

Source: DefenseWorld

Translated by Ruben Veenstra from original Dutch article