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Head Of Italy's Second Largest Industrial Conglomerate Arrested

Tyler Durden's picture




 

Just when you thought you had heard it all - from Spanish politicians to Italian bankers - along comes the CEO of Italy's Finmeccanica. Giuseppe Orsi has been arrested for his alleged involvement in a bribery to ensure the Italian aerospace company got the order for Indian military helicopters in 2010. The $750 million deal, as reported by the WSJ, is now under investigation by the Indian defense minister but is not the first such 'bribery scandal' for Finmeccanica - whose CEO generously offered to step down if the Italian government (which owns 30.2% of the firm) asks him to. The share price plunged over 8% and was halted as analysts suggested - rather remarkably - that this might make it harder for Finmeccanica to compete for contracts in an already difficult market in which governments are cutting back on military spending. The sad truth appears to be that, whether pandemic or recently driven by a tougher economic environment, fraud runs deep - and its just a matter of time before it comes out, especially with the election so close.

 

Via WSJ,

Italian police early on Tuesday arrested Finmeccanica SpA Chief Executive Giuseppe Orsi as part of an investigation into possible international corruption related to the 2010 sale of helicopters by the Italian aerospace company to India, according to the prosecutor in the investigation.

 

...

 

Mr. Orsi has been under investigation for several months in the case, in which Italian prosecutors are looking into whether the helicopter unit of Finmeccanica paid bribes to secure the €560 million ($750 million) sale of 12 helicopters to the Indian government, according to Finmeccanica and a person close to the investigation. Mr. Orsi was chief executive of AgustaWestland, the helicopter unit, at the time.

 

Eugenio Fusco, the prosecutor on the case, also said that Bruno Spagnolini, current head of AgustaWestland, had been placed under house arrest as part of the same probe. Mr. Spagnolini was chief operating officer of AgustaWestland in 2010.

 

...

 

The arrest of Mr. Orsi—who runs a company that is majority-owned by the Italian state—comes at a politically sensitive moment, just two weeks ahead of national elections. Outgoing Prime Minister Mario Monti said the government would deal with management issues created by the arrest.

 

"(This opens up) a problem of governance at Finmeccanica, which we will address," he said in a radio interview on Tuesday morning.

 

Mr. Orsi has said that he would step down from his position if the Italian government, which owns 30.2% of Finmeccanica, asked him to.

 

Finmeccanica's stock fell 8.06% to €4.37—its lowest in two months—after being suspended from trade on the opening of the Milan exchange.

 

Mr. Orsi's arrest is the latest in a string of legal troubles for Finmeccanica. Prosecutors in other Italian cities are investigating the company on suspicion that it engaged in corrupt activities to win various types of contracts in Latin America, Asia and at home. Finmeccanica has denied the allegations.

 

...

 

Massimo Vecchio, an aerospace analyst at Italian bank Mediobanca, MB.MI 0.00% said in a report that Mr. Orsi's arrest risked damaging Finmeccanica's international reputation, possibly making it harder for the company to compete for contracts in an already difficult market in which governments are cutting back on military spending. Finmeccanica said it had no comment on Mr. Vecchio's analysis.

 

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Tue, 02/12/2013 - 11:29 | 3236633 fuu
fuu's picture

Actual green shoots!

Tue, 02/12/2013 - 11:32 | 3236641 williambanzai7
williambanzai7's picture

Is this another sign of positive contagion?

Tue, 02/12/2013 - 11:33 | 3236645 BanksterSlayer
BanksterSlayer's picture

aww, for a minute I thought this might be another Pope story. Hey when is the Pope going to get arrested?

Tue, 02/12/2013 - 11:41 | 3236679 Stackers
Stackers's picture

kick backs and bribes are standard operating procedure in Italy.

Tue, 02/12/2013 - 12:01 | 3236747 Skateboarder
Skateboarder's picture

Italy + India, a match Made in China. ®

Tue, 02/12/2013 - 11:43 | 3236674 Al Gorerhythm
Al Gorerhythm's picture

Positively contagious, as long as we get to the depths of the fraud. End the leglislated fractional reserve banking system. Recind the legislation that sets opposing standards for counterfeiting. If one guy is allowed to do it legally, what's the problem with the same law applying to all of us?

Fraud runs deep(ly), indeed.

Tue, 02/12/2013 - 11:50 | 3236709 Stoploss
Stoploss's picture

Bunga Bunga's making a comeback.

Tue, 02/12/2013 - 16:27 | 3237675 thisandthat
Tue, 02/12/2013 - 11:33 | 3236644 Zola
Zola's picture

Tar and feathers bitchez

Tue, 02/12/2013 - 11:33 | 3236650 Oldwood
Oldwood's picture

So exactly who did he piss off to get thrown to the wolves? Corruption is not a reason but an excuse.

Tue, 02/12/2013 - 12:52 | 3236930 bigbwana
bigbwana's picture

There will be many more arrests. The Illuminati know they are all but done and dusted!

Tue, 02/12/2013 - 11:35 | 3236651 Dr. Engali
Dr. Engali's picture

You would think that the Italians would have learned by now you don't bribe politicians...you lobby them. Corporations are people too. Sheesh what a bunch of pikers.

Tue, 02/12/2013 - 11:36 | 3236658 otto skorzeny
otto skorzeny's picture

I don't believe a word of it -everybody knows Italians aren't smart enough to build helicopters.

Tue, 02/12/2013 - 11:40 | 3236669 I need more cowbell
I need more cowbell's picture

They make great helicopters, with a very pleasing rhythmic sound to the prop rotations, "Wop wop wop" 

Tue, 02/12/2013 - 11:44 | 3236689 Joe Davola
Joe Davola's picture

I've also heard dago really fast.

Tue, 02/12/2013 - 11:44 | 3236688 Agent P
Agent P's picture

Looks like someone is breaking out the Leonardo da Vinci material.

Tue, 02/12/2013 - 11:39 | 3236664 falak pema
falak pema's picture

electoral mud slinging; not that the facts are not true, but its now the DP going for Berlu's nuts; as this guy's helicop deal was negotiated under Bunga Bunga.

Monte Paschi scandal begets helicpter scandal. 

Those Italians make good pizza slinging contests.

Tue, 02/12/2013 - 11:37 | 3236665 Sudden Debt
Sudden Debt's picture

At least they score orders even the products suck...

OBAMA CAN'T EVEN SELL MADE IN AMERICA!!!!

JUST LOOK AT MCDONALDS AND COCA COLA!!!

THE FLAGSHIPS OF THE AMERICAN ECONOMY!!!

BOTH DOWN!!

Tue, 02/12/2013 - 12:28 | 3236846 Eally Ucked
Eally Ucked's picture

Are you sure the product sucks? Who knows, Boeing sold hundreds of Nightmareliners and I guess quite of few people knew about the problems, did they bribe purchasers? No American court will touch anything like that, it's unpatriotic. BTW judging from cases in the courts, Europe is the dirtiest possible area for bribes and financial scams.

Tue, 02/12/2013 - 13:29 | 3237059 Sudden Debt
Sudden Debt's picture

that soldier who shot Osama Bin Laden?

he lost his job, hasn't got any form of income, has some injuries and is near retirement...

well... it wasn't patriotic to help that guy out....

It was patriotic to let somebody like that wonder if he'll be able to buy food the next day....

IT'S GOOD TO BE A PATRIOT WHEN IT ONLY MEANS THAT YOU SWALLOW WHATEVER THEY FEED YA!

Tue, 02/12/2013 - 15:11 | 3237389 Eally Ucked
Eally Ucked's picture

What was that? Are you really so attached to word "patriotic" or just you're playing games for your undisclosed reasons? What the fuck you wanted to say? 

Tue, 02/12/2013 - 11:39 | 3236673 NEOSERF
NEOSERF's picture

Refreshing to see a CEO arrested vs. some mid-level lackey.

Tue, 02/12/2013 - 11:45 | 3236687 Super Broccoli
Super Broccoli's picture

reminds me the Agusta choper case in belgium in the 90's, italian businessman don't seem to have changed a lot :

 

http://en.wikipedia.org/wiki/Agusta_scandal

Tue, 02/12/2013 - 11:48 | 3236703 Sudden Debt
Sudden Debt's picture

and the minister involved, Willy Claeys, who even lost his civil rights for 5 year

BECAME CHAIRMAN OF EUROPE RIGHT AFTER THAT!!!!!

Tue, 02/12/2013 - 11:47 | 3236697 847328_3527
847328_3527's picture

"Corruption never sleeps."

Tue, 02/12/2013 - 11:49 | 3236702 Bokkenrijder
Bokkenrijder's picture

Italy and corruption? Really?!?

In Belgium a politician was assasinated in the 90's because of the purchase of Augusta helicopters. Augusta is owned by Finmeccanica:

http://www.agustawestland.com/

http://en.wikipedia.org/wiki/Agusta_scandal

Now in The Netherlands and Belgium another possible corruption scandal is brewing because of the purchase of (lousy quality) high speed trains called Fyra connecting Brussels and Amsterdam, which are also build by...? You guessed it, another daughter company of Finmeccanica called AnsaldoBreda:

http://en.wikipedia.org/wiki/Fyra

http://www.railjournal.com/index.php/high-speed/no-end-in-sight-for-fyra...

Tue, 02/12/2013 - 11:50 | 3236708 buzzsaw99
buzzsaw99's picture

$50 fine, no admission of wrongdoing. Just us bitchez.

Tue, 02/12/2013 - 11:50 | 3236711 Bob
Bob's picture

It could never happen here--we've got more efficient ways of dealing with these things, rule of law and all:

http://www.huffingtonpost.com/2013/02/12/obama-mortgage-crisis_n_2666449...

Tue, 02/12/2013 - 11:51 | 3236714 NRGIsFree
NRGIsFree's picture

We Americans get around this with no bid government contracts. They can be used to secure weapons to blow up a sovereign nations infrastructure AND rebuild it.

Tue, 02/12/2013 - 11:52 | 3236719 wisefool
wisefool's picture

90% of domestic GDP is produced by favoritism in the tax code. The tax code is created by lobbyists. There is no academic foundation other than they will use a gun on you if you don't agree to clean up the K-Street hotel room with a mop and bucket.

Why would exporters of guns (helecopters) be expected to play the game any different way?

Tue, 02/12/2013 - 12:01 | 3236753 LawsofPhysics
LawsofPhysics's picture

Precisely why you and your tribe need to keep your own guns.  Like the idea of cleaning up K-street with a mop and bucket (post napalm of course).  Yes, your "representation" is fully fucking owned, stupid fucking sheep.

Tue, 02/12/2013 - 12:19 | 3236812 wisefool
wisefool's picture

I am more from the "If you strike me down" mentality. The crass mop and bucket reference was more about deriding the global bunga bunga culture (low IQ people who run the government like their labidos: hygine-motivator, instant gratification, domination) than it was about violence.

Tue, 02/12/2013 - 11:54 | 3236723 Dr. Engali
Dr. Engali's picture

They should have sold them to the Bernank. Rumor has it he needs a few more helicopters.

Tue, 02/12/2013 - 11:54 | 3236724 espirit
espirit's picture

The rats are turning on each other.

"There can be only one"; Quote from 'Highlander'.

Tue, 02/12/2013 - 12:06 | 3236765 JR
JR's picture

There are only two sides to elections now, only two sides to the economic crisis: the people side and the banker side.  Media and political parties and voters either pick the people or they pick the bankers. There’s nothing in between.

And thus charges coming fast and furious from the current banker-controlled government prior to Italy's election. And here’s why.

Zero Hedge headlined two days ago: "Berlusconi Ally Supports Alternative Currency to Euro"; and stated, “the central bank knew the Bunga Bunga PM would be bad news for the status quo.”

“The reason is that Sylvio has always refused to play ball with the banker oligarchy, whose survival depends first and foremost on the perpetuation of the EUR (as a collapse of the Eurozone means all reflation and DJIA 36,000 bets are off), and where every hint of a weakening of the Eurozone is to be eliminated at inception. Which is why news that Belusconi's coalition ally in the parliamentary election - Roberto Maroni, head of the Northern League, has suggested the creation and use of a local currency in northern Italy as an ‘alternative’ to the Euro will hardly be seen as favorable by Europe's technocratic overlords for whom any initiative to structurally destabilize and weaken the European currency has to be crushed at the roots.”

The thrust of banker control, i.e., economic fascist socialism, always is toward complete control, depriving men of choices. Hence, America’s 2012 presidential election. Hence, Italy’s current election.

Tue, 02/12/2013 - 12:08 | 3236773 paulie
paulie's picture

In what universe does heavy weapon industry not come with bribery ?

Sorry folks, don't talk morality or business ethics to me: this is a clear attempt at having Finmeccanica stocks value plunge in order to buy it at retail price.

And since our current prime minister is a slave to global powers ......

Tue, 02/12/2013 - 12:38 | 3236874 The Reich
The Reich's picture

I'm gonna make him an offer he can't refuse...

Tue, 02/12/2013 - 12:56 | 3236939 LeisureSmith
LeisureSmith's picture

Is this by any chance the NH90 from NH Industries? The Norwegian navy ordered 14. The delivery is now over 6 years delayed and they have one helicopter. Heads must roll, the lonesome helicopter can be used as a makeshift guillotine. http://www.bloomberg.com/news/2012-09-06/finmeccanica-eads-helicopter-ve...

Tue, 02/12/2013 - 13:08 | 3236986 Joe A
Joe A's picture

Funny, this company and subsidiaries are supplying helicopters to the Dutch navy and high speed trains to the Dutch railways and guess what: full of problems and late deliveries. But cheap though....

Tue, 02/12/2013 - 13:24 | 3237037 LeisureSmith
LeisureSmith's picture

It's only cheap if you get what you paid for. Have they been going around bribing people to make orders so they could boost their shareprice? Bribes and the MIC. is like a hand in a glove, i am surprised that i am surprised.

Tue, 02/12/2013 - 15:35 | 3237503 Old_European
Old_European's picture

BTW: Finmeccanica is largely owned by.... Te Carlyle Group. They're te ones who got the money.

Tue, 02/12/2013 - 14:54 | 3237330 shovelhead
shovelhead's picture

"Take the gold or get the lead."

Tue, 02/12/2013 - 20:34 | 3238549 10mm
10mm's picture

If those copters are like anything their tanks were in WW2,stay the fuck out of them.

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