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New Delhi, Sat Feb 25 2012, 02:34 hrs
A day after The Indian Express brought to light allegations of corruption against Italian defence manufacturer in a deal to sell 12 VVIP helicopters to India, Defence Minister A K Antony on Friday ordered a probe into the matter. Sources said that Defence Secretary Shashi Kant Sharma has been asked to look into the allegations of corruption in the Rs 3,548 crore deal that was inked in 2010.
The probe by the defence ministry has been ordered after it came to light that Italian prosecutors are investigating allegations of corruption against state-backed defence major Finmeccanica. The probe is part of a widening investigation into malpractices in the firm that has shaken Italy.
Reports from Italy suggest that slush funds were generated after a "sudden" escalation of price by 10 million euros in 2010. While it is not clear whether kickbacks were paid in India, the money was allegedly used by a top Finmeccanica official to bribe Italian political parties.
"The minister has asked the defence secretary to look into the matter. These allegations are a matter of concern," an official said. While there has been no probe into the matter by Indian authorities yet, the deal had come under a shadow in 2009 when the Finance Ministry had objected to the steep price of the chopper and the elimination of the other contender that made it a single vendor situation.
India had signed the deal to 12 choppers, eight of which would be used for VVIP transportation and four for other operations. The procurement was to replace the Mi-8/17 helicopters that are currently used to fly VIPs like the President, Prime Minister and visiting dignitaries.
In 2010, Defence Minister AK Antony had said that the Finance Ministry scuttled a mega tender to procure mid air tankers to support fighter operations but cleared another contract to procure the VVIP choppers because of the 'changed security scenario'.
While several questions had been raised on the high price being quoted for the deal, Antony had said that the Finance Ministry supported the helicopter deal after the Special Protection Group insisted that new choppers are required because of the changed security scenario.
"Not only the Air Force but the SPG also was involved. They told us due to the security scenario, we should consider this proposal and the Finance Ministry also agreed to take their comments and it was cleared in the Cabinet Committee on Security," he had said.
Antony orders probe into VVIP copter deal - Indian Express
A day after The Indian Express brought to light allegations of corruption against Italian defence manufacturer in a deal to sell 12 VVIP helicopters to India, Defence Minister A K Antony on Friday ordered a probe into the matter. Sources said that Defence Secretary Shashi Kant Sharma has been asked to look into the allegations of corruption in the Rs 3,548 crore deal that was inked in 2010.
The probe by the defence ministry has been ordered after it came to light that Italian prosecutors are investigating allegations of corruption against state-backed defence major Finmeccanica. The probe is part of a widening investigation into malpractices in the firm that has shaken Italy.
Reports from Italy suggest that slush funds were generated after a "sudden" escalation of price by 10 million euros in 2010. While it is not clear whether kickbacks were paid in India, the money was allegedly used by a top Finmeccanica official to bribe Italian political parties.
"The minister has asked the defence secretary to look into the matter. These allegations are a matter of concern," an official said. While there has been no probe into the matter by Indian authorities yet, the deal had come under a shadow in 2009 when the Finance Ministry had objected to the steep price of the chopper and the elimination of the other contender that made it a single vendor situation.
India had signed the deal to 12 choppers, eight of which would be used for VVIP transportation and four for other operations. The procurement was to replace the Mi-8/17 helicopters that are currently used to fly VIPs like the President, Prime Minister and visiting dignitaries.
In 2010, Defence Minister AK Antony had said that the Finance Ministry scuttled a mega tender to procure mid air tankers to support fighter operations but cleared another contract to procure the VVIP choppers because of the 'changed security scenario'.
While several questions had been raised on the high price being quoted for the deal, Antony had said that the Finance Ministry supported the helicopter deal after the Special Protection Group insisted that new choppers are required because of the changed security scenario.
"Not only the Air Force but the SPG also was involved. They told us due to the security scenario, we should consider this proposal and the Finance Ministry also agreed to take their comments and it was cleared in the Cabinet Committee on Security," he had said.
Antony orders probe into VVIP copter deal - Indian Express
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