India Blocks New Finmeccanica Defence Contracts in Ongoing Bribery Probe

- Leadership - Aug 27, 2014

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. 

Like what you see! Signup for our weekly newsletter