Police Corruption Arrest in Italy over Helicopter Sales

Over sales to Indian military

Italy awoke Tuesday to yet another corporate scandal with political overtones, as prosecutors in Milan arrested the head of the state-controlled aerospace company Finmeccanica in an investigation related to the sale of 12 helicopters to India in 2010.

The Finmeccanica chairman and chief executive, Giuseppe Orsi, was taken in for questioning by prosecutors. Bruno Spagnolini, head of the AgustaWestland helicopter unit of Finmeccanica, was placed under house arrest. The authorities also raided the AgustaWestland corporate offices in Milan.

The investigation is focused on whether company executives violated bribery and corruption laws in seeking the €560 million, or $753 million, helicopter deal with the Indian military.