Indonesia, AgustaWestland Bribery Investigation Continues

Indonesia has found itself in the center of a defense procurement scandal involving Italian plane-maker AgustaWestland. Italian sleuths are currently carrying out investigations looking into allegations of bribery by the Finmeccanica group to win large government contracts. According to reports, former Italian President Silvio Berlusconi and his aides allegedly paid kickbacks to politicians and dealers to clinch contracts while concealing an 11% return. The underhanded dealings which also covered India, Panama and Russia were disclosed by Lorenzo Borgogni, former director of Institutional Relations at Finmeccanica to investigating magistrates. Taped conversations between Paolo Pozzessere, who handled relations between Fincantieri and Finmeccanica, and Berlusconi reveal that the a middleman was authorized to set up a meeting in Jakarta with the new chief of the Indonesian air force and a top-level Italian emissary for the purchase of transport aircraft for $600 million. “He says it's absolutely crucial that this sale does not involve any local agents because otherwise there would inevitably be a scandal in Indonesia that would compromise the contract… I can make sure the sale will go through without any interference," Berlusconi says in the taped conversations. Although Berlusconi has been arrested on charges of tax fraud, it remains unclear to what extent the bribery ring ran. By Bindiya Thomas