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In fact, when Orsi was busy sacking people to "weed out corruption from the system" he had inherited from tainted predecessor Francesco Guarguaglini with "the blessings" of premier Maria Monti, prosecutors in Busto Arsizio were collecting evidence to nail him over the bribes AugustaWestland (a Finmeccanica unit) had allegedly paid to Indian officials to swing a 2010 deal to sell 12 helicopters to fly VVIPs.
The probe followed "disclosures" made nearly a year ago by Lorenzo Borgogni, a former external relations manager at Finmeccanica, who was sacked after Orsi took over in May 2011. Orsi headed the helicopter unit when the bribes were said to have been paid through middlemen. The Italian government owns 30% of Finmeccanica.
During the period - the past 11 months when Italian investigators were chasing for evidence - India's defence minister AK Antony, who had built his political career on his "integrity" image, didn't do much to unearth the alleged irregularities in the deal. His ministry had shot off a few mails to envoys in Rome. Which is why when the news of the arrest of Orsi emerged, it shook not just Monti and the Italian corporate world, but also the Indian defence ministry.
"It was highly unexpected. It was a rude shock," says an Indian government official, requesting anonymity. "The extent of damage it could cause in Indian defence procurement and also for the government is yet to be seen," he adds.
SHAME & GUILT
In an effort to control the damage, the UPA government has put on hold all future payments to AugustaWestland, and the firm has been asked to disclose if it had paid any kickbacks to middlemen in the deal. As much as Rs 350 crore were allegedly paid for the Rs 3,546-crore deal. According to people close to the matter, the Centre has so far paid AugustaWestland more than 50% of the total payment. Antony has already swung into action, ordering a probe by the Central Bureau of Investigation (CBI).
"This is a case similar to the Bofors deal. The more prompt the action, the better it is for the government. No man's honesty can save it from disgrace and damage," says journalist TVR Shenoy, referring to Antony's unblemished image as a politician. The 1989 general election was fought over the Bofors deal, which put the spotlight on the Gandhi family's alleged ties with at least one of the middlemen who reportedly received kickbacks from the Swedish company in 1987 to swing a military contract. The Rajiv Gandhi-led Congress suffered a resounding defeat in the election.
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In Italy, all this would mean trouble for the technocrat politician Monti ahead of the national poll on February 24. "It is not wrong to say that the upcoming election may have stimulated the action of [the] prosecutors," says Maurizio Cotta, director of the Centre for the Study of Political Change at Universita di Siena. The key contenders, besides Monti, in the poll are former prime minister Silvio Berlusconi (People of Freedom Democratic Party), Pier Luigi Bersani (Democratic Party) and Beppe Grillo (Five Star Movement).
But then Cotta adds, "The judiciary, particularly during the past two decades, has perceived itself increasingly as a counterweight to party politics."
IN ITALY, THE PROSECUTOR IS NO JOKE
While Indian defence minister AK Antony and team were mailing letters to envoys and dilly-dallying over the past 11 months, prosecutors in the court of Busto Arsizio, north of Milan, were scouring for evidence to nail those allegedly involved in paying bribes to Indian officials for the sale of 12 helicopters of Italy’s No. 2 private company Finmeccanica, in which the government holds a 30% stake.
JUDICIARY HAS THE UPPER HAND
1. Italian politicians seem to hate the judiciary, especially those in the lower judiciary like investigating judges, for their blunt approach to dealing with corruption.
2. Many of them have also tried, unsuccessfully, to tarnish the reputations of such judges by calling the entire system of judiciary a joke.
3. Thankfully, unlike in countries like India, the judiciary in Italy is highly autonomous for many reasons. This is because:
Nominations to judicial positions are decided by a body comprising almost entirely judges and prosecutors (Consiglio Superiore della Magistratura or the superior council of the judiciary),
According to experts, "career progression of judges and prosecutors" in the country is not influenced by the Italian ministry of justice either.
HISTORICAL ROOTS
Italian politicians ET Magazine spoke to, including a minister, complain that prosecutors are "denting" the image of the country and a marquee company by their "untimely activism". They didn't wish to be identified. About widespread corruption, they just maintain that "in defence deals, there is always bribing. Everybody does it, not just Italian firms". For his part, Berlusconi has openly stated that "bribes are needed" to secure defence deals.
Italian prosecutors call a spade a spade, says a Milan-based judge, who didn't wish to be identified. He was not part of the Finmeccanica probe. "We don't care whether it unsettles politicians or damages business interests, however big they are. We mean business: fighting graft which is as monstrously widespread in Italy as it is in India," he says. "We don't care about defence companies from other countries going unpunished for their crimes because we can't do anything about it. That doesn't mean we can afford to let our companies in the wrong go scot-free."
In fact, it is what Cotta calls "frustration against graft" that led to a popular judicial movement, called "Mani Pulite" (which in Italian means "clean hands"), in the early 1990s against "Tangentopoli", loosely translated into English as bribesville (See Famous ‘Victims'...). Cotta explains that the judiciary is far more independent in the south European country than in most places.
"It is highly autonomous for many reasons. One of them is that nominations to judicial positions are decided by a body comprising entirely of judges and prosecutors (Consiglio Superiore della Magistratura or the superior council of the judiciary) and the career progression of judges and prosecutors is not influenced by the ministry of justice."
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POLITICAL FORAYS OF PROSECUTORS
Over the years, the act of pitching themselves against political parties has helped prosecutors in making poll forays, says Cotta. "I would say that prosecutors have profited from an increasing media exposure, which has often made them public figures, sometimes preparing their entry into electoral politics."
Well, there is always a purpose for an action, he suggests, especially in the run-up to an election. "This possibility [of power and activism] encourages [them] to take action against politicians that can receive the support of public opinion."
It is only natural, says Cotta, that such cases (of corruption) are boosting the support for anti-political movements such as the Five Stars led by Grillo. Lately, Italy has seen a flurry of corporate scandals in which politicians are linked: prosecutors are looking for Paolo Scaroni, CEO of energy giant ENI, for bribing Algerian officials to secure deals there. Besides, Monte dei Paschi di Siena, the country's third-largest bank, has also been under a probe for mismanagement, which forced it to seek a public bailout.
As opposed to the days of Tangentopoli, when corruption was centrally coordinated by political parties, today "because of the weakening of parties, individuals play a much bigger role in fostering corruption", observes Cotta. This time around, 62-year-old Antonio Di Pietro, a crusader-prosecutor and the most-known face of Mani Pulite who has led many legal battles against the mafia and politicians as powerful as Berlusconi, is himself contesting the poll.
IMPACT ON INDIA
"That such judicial activism ahead of polls in Italy is impacting India in more ways than one is interesting to watch," says a Delhi-based government official, who isn't authorised to speak to the media. "It will mar not only the political careers of politicians but also India's defence preparedness… we also end up putting the lives of ordinary soldiers in strategic locations, who continue to use outdated choppers, in constant danger. Things are now going to come to a standstill for a while in procurement," he rues. "But the most important thing is to bring the guilty to trial," he says.
Well, that is what Antony - who has come under severe attack for "sleeping over the issue" by the opposition - has categorically stated.
US defence analysts such as Robert Metzger are worried. "It is discouraging that just after AeroIndia 2013 had brought the world's attention to India's goals for aerospace and defence, scandal again should strike... It may lead the Indian government to further retract from its intent to acquire systems and equipment needed for India's security. It will reinforce sceptics who ask whether business can be done in India ethically,"he says.
"For India, the question should be how to make right what now appears to be yet another wrong. First, all concerned should recognise the need for fairness of process and allow the investigation to run its course before making final judgements," he adds.
GOING FORWARD
While Orsi faces several other charges, including his involvement in giving E10 million to the conservative, anti-immigrant Northern League for political support, his country, too, is going through exciting times: the pope is departing, there are more corruption scandals and there are the polls. "We tend to get excited about all this, but unfortunately we do not make good use of this excitement to change ourselves," says Cotta.
Will Antony make that change in India? "We may soon know," says an intelligence officer, who asked not to be named. "What he does will decide his future and that of Indian defence."
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