As allegations of kickbacks have surfaced in a deal to buy 12 helicopters for the use of VVIPs from Augusta Westland of U.K., the Government on Monday said that it was pursuing such allegations of bribery but no formal inquiry has been ordered in the case due to lack of specific information so far.
In written reply to a question in the Lok Sabha, Defence Minister A. K. Antony said the Ministry of Defence (MoD) was constantly pursuing the matter and was committed to take suitable penalty measures in the event of allegations being substantiated. ``However, in the absence of any specific information in this regard, Government has not ordered any formal inquiry into the case so far,’’ he informed the Houise.
India has signed a contract with Augusta Westland- a subsidiary of Italian Finmeccanica Group- for procuring 12 helicopters (eight VVIP version) at a total cost of Euro 556.262 million. The deliveries of the choppers are scheduled between January to July 2013, Mr. Antony said.
He said the reports of alleged kickbacks to Indian officials came to the notice of Defence Ministry following media reports, suggesting alleged unethical dealings by Finmeccanica and the probe into the Indian contract by Italian
prosecutors.
On MoD’s request, he said the Indian Embassy took up the matter with government of Italy for their official position and ``intimated us that they have no official position on the issue in view of independence of judiciary and Italian prosecutors being neither under the executive nor accountable to it.’’
He said that a response received from Finmeccanica on its internal audit was also ``inconclusive and does not bring out any concrete fact to draw a conclusion.’’ Further, he said that the Indian Embassy in Rome had also taken up the matter with Naples Prosecutor's office, but, ``no feedback has been received so far in this regard.’’
The Minister also said that the Ministry of External Affairs (MEA) has been requested to take up the matter with Italian government to seek information whether any middleman was involved in the contract and if there was any involvement of any Indian individual or entity in the deal.
``The Italian Ambassador in India was also summoned by the MEA and a copy of the Aide Memoire has also been handed over to him,’’ he said while giving details in his reply.
Mr. Antony told the House that as per the Defence Procurement Procedure (DPP) an integrity pact needs to be signed between the buyers and the bidders for all procurement schemes over Rs 100 crore.
He added that provisions were in place to check the role of middlemen and ensure highest degree of probity, public accountability and transparency in defence acquisition cases.
Mr. Antony said the contract for procurement of 12 helicopters contains contains the standard clause relating to penalties for use of undue influence and against employment of agents and agency commission. ``Any breach of these provisions entitles the Defence Ministry to cancel the contract and all of any other contract with the company and recover the amount of any loss arising from such cancellations,’’ he reiterated in the reply. (EOM)
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