{"id":44651,"date":"2014-11-22T21:13:03","date_gmt":"2014-11-22T21:13:03","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2014\/11\/22\/orsi-finmeccanica-will-bounce-back\/"},"modified":"2026-08-07T23:38:27","modified_gmt":"2026-08-07T23:38:27","slug":"orsi-finmeccanica-will-bounce-back","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/global\/europe\/2014\/11\/22\/orsi-finmeccanica-will-bounce-back\/","title":{"rendered":"Orsi: Finmeccanica Will Bounce Back"},"content":{"rendered":"\n<p><span class=\"character dateline\">ROME \u2013 <\/span> Giuseppe Orsi, the former CEO of Finmeccanica who was acquitted last month of offering bribes to Indian officials, says the Italian group was never humbled by the kickback scandal and will bounce back.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;Finmeccanica was never on its knees because of this case and will continue to prosper thanks to its 70,000 skilled staff, its technology and its products,&#8221; he told Defense News.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Orsi, 69, was acquitted in October of offering cash incentives to Indian officials in a \u20ac560 million (US $702 million) deal in 2010, under which India bought 12 AW101 helicopters.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">After corruption allegations were made, Orsi was jailed on suspicion by Italian magistrates in 2013 and sent to trial, while India canceled the deal and barred Finmeccanica from competing for new contracts in India.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Now, Orsi said he is suing the former Finmeccanica external relations manager, Lorenzo Borgogni, who made those allegations. Orsi said Borgogni discussed the allegations with magistrates after Orsi had fired him for accepting consultancy fees from firms working as contractors to Finmeccanica.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Borgogni also spoke to prosecutors about Orsi paying money to an Italian political party, the Northern League. &#8220;To make it more interesting he played the political scandal card. Without that, the whole case might not have gone so far,&#8221; Orsi said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Finding no proof, prosecutors later dropped the Northern League allegations but pushed on with the India probe.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Orsi said he is not seeking a job in the defense industry, preferring instead to devote himself to charity work and organize job training for impoverished people in Milan.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Orsi was not the only Finmeccanica manager arrested. While he was in jail, Bruno Spagnolini, 63, the former CEO of Finmeccanica&#8217;s helicopter unit, AgustaWestland, was placed under house arrest and then sent to trial with Orsi. He was also acquitted on corruption charges.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;You can move on after that, but the image it gave us and the company won&#8217;t be restored easily,&#8221; Spagnolini said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Spagnolini said that, like Orsi, he is now involved in charity work. &#8220;I am working with migrant youth in my home town and driving ambulance, providing first aid,&#8221; he said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Orsi said the probe highlighted defects in the Italian legal system. If he had been allowed to resign before being arrested, he said, it would have saved Finmeccanica from damage to its reputation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Spagnolini said transcripts of wiretaps from the probe were published out of context by newspapers. &#8220;We were able to clear that up in the trial, but not before they were published in the Indian media.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;This is a recurring problem with the Italian justice system,&#8221; said an Italian defense analyst who declined to be named. &#8220;There have been various cases where not enough care is taken. The problem is not the law, but the way it is applied. There is often little concern for issues of national interest, which may, in some cases, require coordination between the judiciary and the government.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;It&#8217;s a fine line because the autonomy of judicial proceedings must be respected, but sometimes magistrates appear to be living in another world.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The case is far from closed. Orsi and Spagnolini received two-year, suspended sentences for false accounting, even as they were acquitted of the more serious charge of international corruption.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">They plan to appeal the accounting fraud sentence, although it is likely that during an appeal hearing, prosecutors will in turn appeal against the corruption acquittal, as they are allowed to do in Italy. Then, under Italy&#8217;s three-tier justice system, a second appeal could be heard at Italy&#8217;s supreme court.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Meanwhile, Orsi said he hoped India would drop its own probe into the allegations of bribery and relaunch its procurement of the AW101. Finmeccanica&#8217;s current CEO, Mauro Moretti, has made a similar appeal to India.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Orsi is not the first Finmeccanica CEO to see his career go sour thanks to an Italian judicial probe. His predecessor, Pierfrancesco Guarguaglini, stepped down from his role as chairman in 2011 as prosecutors investigated him for fraud, following claims against him made by a consultant, Lorenzo Cola.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Guarguaglini was CEO at Finmeccanica from 2002 to 2011, but moved into the chairman&#8217;s office when his mandate ended and Orsi took over as CEO. The two men clashed over strategy, and Guarguaglini later said the investigation weakened his position.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At the end of 2012, the investigation against Guarguaglini was dropped.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">He was then again placed under investigation this year, as part of a separate probe into the alleged paying of bribes related to an Italian state-funded waste tracking program, known as SISTRI.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Guarguaglini, who was placed under house arrest as part of the probe this year, has denied any involvement in the suspected corruption. He has now been sent to trial. \u25a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Email: tkington@defensenews.com.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>ROME \u2013  Giuseppe Orsi, the former CEO of Finmeccanica who was acquitted last month of offering bribes to Indian 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