IAF Rubbishes Bribery Charge, To Go Ahead with AgustaWestland VVIP Helo Deal

The Indian Air Force (IAF) intends to go ahead with the purchase of 12 AgustaWestland VVIP helicopters despite the latest string of bribery and corruption allegations which have appeared in an Indian newspaper. The IAF has rubbished reports of its former pilots being involved in an alleged bribery scandal surrounding the procurement of VVIP helicopters from AgustaWestland. “The Air Force will go ahead with the deal. We have conducted the transaction with professionalism, procedurally and thoroughly. There is no basis to the media reports,” IAF spokesperson Wing Commander Gerard Galway told Defenseworld.net in a telephonic comment. The IAF is scheduled to receive its first AW101 helicopter in VVIP passenger configuration within the next 2-3 months. According to AgustaWestland, the first of 12 choppers is being outfitted as per the Indian order with delivery to be made within agreed schedules. A section of the Indian media has been reporting on the Italian government’s probe into AW’s parent company, Finmeccanica as part of which the allegation of money laundering in the $650 million Indian deal reportedly surfaced. The reports identified Sanjeev Kumar Tyagi, whom it claimed was a former IAF pilot, as being involved in the deal, a claim denied by the IAF. “On checking our records, we have found no such person --either serving or retired,” the IAF spokesperson said. Italian police probe names at least 15 people including Guido Haschke and Christian Michel, Praveen Bakshi, the chief officer of Chandigarh-based firm Aeromatrix, Gautam Khaitan, a Delhi lawyer who represents Aeromatrix, and Sanjeev Kumar Tyagi, a Delhi businessman and former air force pilot, as those being investigated. Aeromatrix, a services company which specialises in aerospace, among others, is owned by Haschke and his partner Carlo Gerosa, is also being investigated. Praveen Bakshi and Gautam Khaitan have both denied having any knowledge about the deal in strongly worded press releases. The report adds that taped conversations between the alleged middleman indicate that 10-15 million euros of the commission may have been routed to India. Following of reports bribery and kickbacks in the Indian VVIP helicopter deal with Italian aircraft-maker AgustaWestland, India is requesting information from the Italian government over the alleged deals. Earlier in March, Defence Minister A K Antony informed Parliament that “no specific probe is being conducted about India-related transactions” by Italy. The 12 VVIP helicopter contract had been finalized in March 2010. AgustaWestland had said in statement after the award of the contract, “AgustaWestland, a Finmeccanica company, is pleased to announce that a contract has been signed by the Government of India for the acquisition of twelve AW101 helicopters that will perform government transport duties. The contract, valued at around € 560 million, includes an extensive five year logistic support service and initial aircrew and technician training”. By Bindiya Thomas