An international audit firm has come under the Enforcement Directorate’s scanner for purportedly endorsing a “factually incorrect” report that was submitted before the Italian courts in connection with the prosecution of accused persons there in the AgustaWestland VVIP helicopter deal case.
“The firm had certified the audit report produced before the Italian court, which finally acquitted the accused persons on the basis of the evidence placed before them; the report’s authenticity was not checked,” said an official, who spoke on condition of anonymity. “Also, not enough evidence from Indian side had been brought before the Italian courts during the trial in this regard,” the official added.
On January 8, 2018, former Finmeccanica chief Giuseppe Orsi and AgustaWestland CEO Bruno Spagnolini — who are accused in the cases being pursued by the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) — were acquitted by the Italian court.
The ED had recently informed a special court about the “factually incorrect” audit report furnished in the Italian court. The report, the official said, relates to payment of more than €18 million by the then U.K.-based Westland to alleged middleman Christian Michel’s company for services rendered in the purported buyback of WG-30 Pawan Hans choppers, which were supplied to India in the 1980s.
Another audit firm had found serious issues with the business dealings between Mr. Michel’s Dubai-based companies and Agusta, recommending further inquiries, but the supplier later opted for another firm.
The ED, apart from the CBI, found the copters lying in a dilapidated condition in Mumbai. “Given that the helicopters were not repurchased as shown, the report submitted in Milan courts had not given a correct picture on why Mr. Michel’s firm was paid such a huge amount on that pretext. It raises a valid suspicion that the money was for use to ensure that AgustaWestland got the VVIP chopper deal,” another official said.
It is alleged that Mr. Michel’s company got the contract pertaining to the said buyback of Pawan Hans helicopters in May 2010, soon after AgustaWestland bagged the deal for supply of 12 helicopters to India in February the same year, as alleged.
The ED may again seek court permission to confront Mr. Michel with fresh evidence that have emerged, particularly related to certain internal communications indicating that long before AgustaWestland won the bid, the interested parties were certain that the contract would go in its favour.