India Blocks New Finmeccanica Defence Contracts in Ongoing Bribery Probe
Indian public officials have imposed a partial ban on Italian defence industry giant Finmeccanica, supplier of a large number of weapon systems, radars and ammunition to the country’s armed forces.
The government is awaiting a verdict on the VVIP helicopter case involving Finmeccanica’s UK subsidiary AgustaWestland, which saw its 556-million-euro contract for the helicopters scrapped because of bribery allegations.
New contracts are banned until further notice, however ongoing contracts will continue amid fears that a complete ban would jeopardise national security by threatening the battle-readiness of India’s defences, the Times of India reports.
The Ministry of Defence also confirmed that cases where the Italian conglomerate is a subcontractor or supplier will also resume as normal.
Finmeccanica will also be impacted on the acquisitions it can make whereby it is involved or has even been declared the L-1 (lowest bidder) in an ongoing tender process.
The MoD said: "Where the tender process is ongoing but no vendor has been declared as L-1 as yet, the Finmeccanica group of companies may also not be considered in the tender, provided the tendering can be satisfactorily completed with other competitors.”
Further to this, a Finmeccanica company will not be able to bid or enter the competition in procurement deals where the tendering process is yet to begin.
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