Q. No. 972 Decline in exports

Question: Will the Minister of DEFENCE be pleased to satate :-

a) whether it is a fact that some irregularities were found in the procurement of helicopters from foreign countries recently;

(b) if so, the details thereof, and the response of Government thereto, including action against the guilty;

(c) whether Government considers cancelling those deals made; and

(d) the steps taken by Government to prevent such irregularities in future?

Answer: Minister of Defence (Shri A.K. Antony)

(a) The Government is aware of reports about alleged wrong doing and unethical conduct by M/s Finmeccanica, parent Company of M/s Agusta Westland, UK in connection with procurement of 12 VVIP / VIP helicopters.

(b) On the report of the arrests of Finmeccanica Chief and Chief Executive of Agusta Westland Spa, Ministry of Defence has asked the Central Bureau of Investigation (CBI) on 12th February, 2013 to conduct an inquiry into the matter.

(c) A show cause notice has been issued to M/s Agusta Westland, UK on February 15, 2013 asking them to explain as to why action should not be initiated for cancellation of the Contract.

(d) All capital procurements are processed as per Defence Procurement Procedure (DPP). This procedure is revised periodically so as to ensure highest degree of probity and public accountability, transparency, free competition and impartiality.