The Finmeccanica scandal, part two: Shashi Tyagi, a former Indian air force chief, has been quoted as saying: “the charge implies that I was bribed to change requirements so that AgustaWestland could take part in the competition,” noting the final order was confirmed three years after his retirement.
In India, the allegations have ignited a political storm, as the opposition claim the government knew about these rumors two years ago and have not named anyone yet. The Indian Central Intelligence Bureau has now launched its own probe, but has said requests for information from European government agencies have not yielded anything of value.
It's is too early to say whether any bribes were paid, but the reaction in both countries highlights the damage.
Nowadays in India, any suggestion of wrongdoing brings on near-hysteria, particularly among state enterprises. Bidding processes have been changed in the last 12-18 months so that all bids are filed electronically, and strict cut-offs prevent competitors from seeing each others prices.
This technology and its practices were developed in the US and Europe 10 years ago to improve competitive bidding processes, and have virtually cleaned up the act of all state enterprises. However, requests for any change in specifications or bidding terms, such as in this case, an alteration to the altitude ceilings, is still met with extreme caution - verging on paranoia.
These cases, whether eventually proved valid or groundless, actaully realize better business practices. India and Italy may have a murky past, but they are both aiming for a more transparent – and fairer – future.
by Stuart Burns