India’s government has cancelled its $770 million contract with AgustaWestland to supply 12 AW101 VIP helicopters to the Indian Air Force (IAF) amid bribery allegations. On January 1, the Ministry of Defense (MOD) issued a statement saying the government “has terminated with immediate effect the agreement…on the grounds of breach of the pre-contract integrity pact and the agreement” by AgustaWestland. The Anglo-Italian helicopter manufacturer denies the allegations.India signed an agreement with AgustaWestland for the AW101s in February 2010, according to the statement. Reports of corruption first surfaced in the media in 2012, and subsequent investigations resulted in former Finmeccanica CEO Giuseppe Orsi and former AgustaWestland CEO Bruno Spagnolini facing charges in Italy. Finmeccanica is AgustaWestland’s parent company.
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