Even as media reports were in circulation about a former top official of Agusta-Westland telling an Italian court that former Air Chief Marshal S.P. Tyagi was hosted in Milan in 2007, nearly three years before the deal for 12 VVIP helicopters was signed and sealed, Defence Minister A.K.Antony candidly admitted on Thursday that the government may not have succeeded 100 per cent in removing middlemen from the defence procurement process, but added that the system has been cleaned up to a large extent.
Interacting with media on the sidelines of DEFEXPO 2014 here, Antony, replying to a question on the Agusta-Westland case, and without naming the company, said: "Now all the vendors in India and abroad, they are convinced that in the matter of defence procurement, there is no political decision. All decisions are on the basis of merit. Nowadays, you are hearing of certain cases because we are not ignoring certain complaints."
"Whenever there is a complaint, we are taking immediate action. That is why you are hearing this complaint, that complaint. We are not ignoring any complaint. We are not throwing any complaint into the wastepaper basket. Any complaints, we are inquiring, and after preliminary inquiry, if we are convinced prima facie that a case exists, we refer the matter to the CBI or any other agencies. That's why these cases are there (in the public domain)," he added.
"But, over the years, the system has been cleaned up substantially. Now, you can ask any foreign vendor attending this exhibition. Now, there is a clear cut signal to anybody - in India, if you try to do any mischief, that would be dangerous. That signal has gone out. There is no need to be pessimistic. The system is cleaning up. It's a process. We will continue the process," Antony said.
Antony's statement came even as government sources said there is no evidence available on whether Tyagi visited Italy while he was in service.
Defence lawyers are scheduled to question Agusta's former senior vice president for international business, Giacomo Saponaro, who made the claim.
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Saponaro is being questioned in the case that 51 million euros were allegedly paid as bribes to bag the deal for 12 VVIP choppers for the Indian Air Force, the Indian Express newspaper reports.
Earlier this week, Saponaro told a court near Milan that Tyagi was hosted by the then Agusta CEO Giuseppe Orsi, a key accused in the case. Orsi is reported to have taken Tyagi to a performance at the Teotro alla Scala, one of the most famous opera houses in the world located in Milan, and thereafter, taken for a fancy dinner at the Biffi Scala restaurant.
Saponaro, however, said, no business discussions took place in 2007.
On Wednesday, Antony, in a written reply to the Rajya Sabha, had said that the government has not taken a decision to debar AgustaWestland, following the cancellation of a contract with it for supply of 12 VVIP helicopters.
He said the government was taking steps to get a stay obtained by the company in a tribunal in Milan vacated for encashment of advance bank guarantees.
Antony said the contract for supply of 12 VVIP/VIP helicopters signed with AgustaWestland International Limited (AWIL) February 8, 2010 was terminated by the government January 1 this year for breach of provisions of the pre-contract integrity pact and breach of the terms of the contract by the company.
He said subsequent to the termination of the contract, two bank guarantees amounting to about Rs.240 crore have been encashed.
AgustaWestland is a British subsidiary of Italian firm Finmeccanica. (ANI with inputs) By Praful Kumar Singh.
