Swiss extradite businessman

Italian police probe the seat of AgustaWestland plant in Varese in February this year Keystone

The Swiss authorities have confirmed that they have extradited to Italy a business consultant suspected of being involved in a bribery case connected to an Italian-British helicopter deal with India.

The individual, a dual US and Italian citizen, was arrested on October 17 at his Swiss residence in the southern canton of Ticino. The extradition procedure was concluded after the businessman refrained from appealing his extradition, Folco Galli, spokesman for the Federal Office for Justice, told swissinfo.ch.

On October 28, the suspect “has been handed over to the Italian authorities in Chiasso,” Galli said. “The Italian authorities suspect him of being involved in kickback payments in connection with the supply of helicopters to India by the Italian company Agusta Westland.”

The arrested businessman is one of three individuals suspected of helping to swing a contract with the Indian Ministry of Defence in favour of helicopter-manufacturer AgustaWestland, a British-based subsidiary of Italian conglomerate Finmeccanica.

Investigations in Italy and elsewhere in Europe over the past months have indicated that AgustaWestland and parent company Finmeccanica may have paid bribes to secure the contract for the supply of 12 helicopters meant to ferry the Indian president, prime minister and other VVIPs. India’s Central Bureau of Investigation (CBI) is investigating the case.

The arrest in Switzerland is likely to help the CBI to establish the trail of kickbacks to Indian officials and nail the accused in the bribery scandal, the Times of India reported on October  19. This would also strengthen the defence ministry’s case to cancel the contract.

The Italian prosecutor who carried out the preliminary inquiry has alleged that AgustaWestland executives used middlemen to secure the deal. According to an Indian Express report, they had paid millions of euros to influence politicians and decision makers in Italy and India. Finmeccanica’s chief executive officer was arrested in Milan in February 2012.

At the same time, the CBI started an enquiry into allegations of unethical dealings in the VVIP helicopter deal. Investigators said at the time that the probe involved five private individuals, three European middlemen as well as private companies in Italy, Britain and India. The probe included raids to the homes of the former chief of staff of the Indian Air Force.

The Indian government said that the contract it signed includes provisions against bribery and the use of undue influence, and entitles the buyer to cancel the contract and recover any losses. Last week, the Indian ministry of defence asked AgustaWestland to give reasons  why the contract should not be cancelled. The company has 21 days to file its reply.

Swiss connection?

In a separate case, on October 28 the Swiss foreign ministry confirmed reports in the NZZ am Sonntag from October 26 that India had asked Switzerland for legal assistance concerning a corruption affair in September 2012.

According to the report, the federal prosecutor then asked idea for additional information in the spring. The federal prosecutor is currently examining this information.

At the centre of the case is an Indian businessman who is alleged to have bribed Indian defence firms.

Neither the justice ministry nor the federal prosecutor revealed the firms involved, but Rheinmetall Air Defence in Zurich has long been suspected of dealing with various Indian companies via the accused man.

Rheinmetall Air Defence admits having had a “normal business relationship” in 2010 and 2011 with one of the man’s firms, but it denies any “improper transactions”.