Bruno Spagnolini

Last updated

Bruno Spagnolini is an Italian engineer and businessman who served as CEO of AgustaWestland, the helicopter-manufacturing division of Finmeccanica. After being charged in 2013 with participation in a bribery scandal (also known as choppergate), he resigned from the position as CEO. On October 9, 2014, an Italian court sentenced him to two years in prison for false bookkeeping. As of November 2014, an investigation in India was still underway.

Contents

Early life and education

Spagnolini was born in 1950.

Career

Spagnolini was chief executive officer of AgustaWestland from 2004 to 2007 and chief operating officer from 2007 to 2011. He became its chief executive in May 2011 [1] when Giuseppe Orsi, the previous holder of that position, was promoted to chairman of Finmeccanica. [2]

In a June 2011 interview, given shortly after his promotion to CEO, Spagnolini said that AgustaWestland had “always pursued a three-legged strategy based on an evolving product range, enlarging its network of service and training facilities as well as establishing strategic partnerships around the world to pursue market opportunities.” He said that development of the AW169 was “progressing as planned” and that “the rotors, blades, engines, avionics, transmission and electric power generation and distribution systems” all incorporated new technologies. He said that the firm was developing “navigation systems for preferred flightpaths and all-weather capabilities, advanced open architecture, common cockpit technology to be shared among present and future models, and unique collision avoidance and warning systems,” as well as “new rotor and blade technology.” He also described Russia and India as “two of the most promising markets for the future with incredible business opportunities that can be fully exploited through new industrial partnerships with prime local players of mutual benefit, well beyond the usual commercial and services solutions offered.” [3]

Spagnolini unveiled a restored version of the Westland Lynx helicopter, the official holder of the helicopter World Speed Record, at the firm's Yeovil factory in July 2011. “To have held the world helicopter speed record for 25 years highlights what an outstanding achievement it was by all those involved in the project and the development of the rotor blade technology that was key to the successful record attempt,” he said. [4]

On March 14, 2012, Spagnoligni took place in a ground-breaking ceremony at Hyderabad’s Rajiv Gandhi International Airport that marked “the start of construction of a new helicopter production facility and a new step in the development of the Indian aerospace industry.” He expressed pleasure at the firm's joint venture with the Indian firm Tata Sons, which, he said, would “play an important role in the development of the Indian aerospace industry.” [5]

Spagnolini said in July 2012 that a new agreement between AgustaWestland and Russian Helicopters to jointly develop a new 2.5-ton helicopter “further expands our strong and successful co-operation” and marked “the next step up in terms of co-operation to address the future needs of the worldwide market.” [6]

The 500th AW139 helicopter delivered by AgustaWestland was handed over by Spagnolini in July 2012 to Weststar Aviation Services during the Farnborough International Airshow in Hampshire, England. [7]

A July 9, 2012, Flightglobal report stated that AgustaWestland was “introducing a modular family concept for its helicopter line-up, representing a change in mindset, which chief executive Bruno Spagnolini says must be implemented to ensure the future success of the Italian manufacturer.” Spagnolini explained that this new concept was “evidence of our product strategy and investments made in new technology,” and said that AgustaWestland was the first rotorcraft manufacturer to introduce “a real family of next generation commercial helicopters.” Calling the AW139 “a driver for our expansion in the market,” he said that the firm had “benefitted from lessons learned on this model to develop the AW169 and AW189, so establishing the advantage of common design philosophy across a range of platforms.”

Spagnoligni maintained that “the AgustaWestland product family is setting a new standard in helicopter fleet management” and would thus help the firm “meet the diversified and evolving requirements of the global commercial market.” He further noted that AgustaWestland was “continuing to play a leading role in new and revolutionary technologies such as the AW609,” and that in the military sector it was “continuing to develop the AW149 8t helicopter, as well as offering militarised versions of the commercial AW139 and incoming AW169.” He discussed the ongoing differentiation of operations at the firm's Yeovil plant in Britain, which would allow it “to respond to the changing balance between reduced defence spending and growth potential for commercial and parapublic applications in UK.” Also, he indicated that the firm was strengthening its “industrial presence in fast growing markets which show huge potential: Russia, China and India.” [3]

A report on January 22, 2013, stated that AgustaWestland had signed a memorandum of understanding with the Brazilian firm Embraer that, if it led to a final agreement, would provide for the establishment of “an assembly line in Brazil building helicopters for both the domestic and wider Latin American markets.” Spagnolini expressed pleasure at this sign of Italy establishing “an industrial presence” in Brazil. [8]

Helicopter scandal

Spagnolini and Orsi were charged in 2013 with arranging bribes in connection with the sale of 12 AW101 helicopters to the Indian government in 2010, when Orsi was CEO of AgustaWestland and Spagnolini was his deputy. [2] The helicopters had been sold for a price of 560 million euros. [9] The arrest warrant for Spagnolini and Orsi said they “presided over a system of bribery and corruption that was part of the company philosophy,” [10] allegedly paying tens of millions of euros to Indian officials through intermediaries and falsifying invoices in order to win the high-profile contract. [9] The specific charges were charged with bribery, tax evasion, and fraud. [11]

After being charged with these crimes, Spagnolini was dismissed from his position at AgustaWestland. [2]

Their trial began on June 19, 2013. Eugenio Fusco, the prosecutor, stated that they had presided over a system of bribes and corruption that was part “of the company philosophy,” according to the arrest warrant. On the first day of the trial, the court stated that both the government of India and the Italian tax office were considered injured parties in the case, a designation that permitted them to participate in the questioning of witnesses and to seek damages in the case of a guilty verdict. Since defendants in Italy are not required to appear at their own trials, neither Spagnolini nor Orsi attended the trial's opening session. [12]

In June, defense lawyers Ennio Amodio and Massimo Bassi argued at the trial that India should not be admitted as a civil party and that the Public Prosecutor's proposal to skip lengthy preliminary arguments was illegitimate and unconstitutional. But the judge rejected their arguments and the Public Prosecutor explained that he wanted a speedy trial and that the “rock solid evidence” against the defendants warranted such a trial. Amodio insisted that it was clear that neither Orsi nor Spagnoligni had engaged in bribery because there was no need for it, given that AgustaWestland's helicopter was clearly the best being considered by India. [11]

A report on September 3, 2013, noted that the corruption trial of Spagnolini and Orsi was set to resume within the month, “with defense lawyers prepared to call an international witness list of top government officials and industry leaders.” It was noted that possible defense witnesses included Ratan Tata, the former chairman of India's Tata Group; Indian defense minister A.K. Antony; and former UK defense secretary Geoffrey Hoon. The defense was “expected to argue that Orsi and Spagnolini did nothing outside the normal scope of accepted business practices in India in winning the contract.” A report noted that “AgustaWestland could be blacklisted by the Indian government under terms of its new and strict anti-corruption laws if Orsi and Spagnolini are convicted” and that India had “begun its own inquiry into the matter.” [2] This practically ended the so called "VVIP Chopper Deal" forever. [13]

A Reuters report on June 12, 2014, stated that the verdict in the trial of Spagnolini and Orsi “could be crucial for Finmeccanica's efforts to restore its reputation at a time when the group is restructuring its business and fighting for contracts in emerging countries.” [14] It was reported on July 29, 2014, that as Spagnolini and Orsi awaited sentencing, perhaps in October, for the helicopter deal, an Italian magistrate had halted a separate investigation into the alleged payment of kickbacks to secure the helicopter sale, while accepting a “negligible fine” as part of a settlement. [15] In August 2014, India banned Finmeccanica from future government contracts. [9]

On October 9, 2014, Spagnolini and Orsi were sentenced to two years in prison for false bookkeeping but were acquitted of international corruption, a charge on which the prosecutor had asked the court to sentence Orsi to six years in prison and Spagnolini to five years in prison. [10] Judge Luisa Bovitutti said that the false bookkeeping conviction concerned 2009 and 2010 invoices. [9] “In reading the verdict,” reported the Wall Street Journal, “the judge said that while prosecutors had proven that fake invoices had been issued, there was no corruption.” This represented an apparent rejection of the prosecution's argument that there existed “a direct connection between the false invoices and the payment of kickbacks.” [16]

Orsi and Spagnolini's sentences were suspended. [9]

At the time of the verdict, India was still pursuing its own investigation into the allegations of bribery. An Indian official said in early 2014 that the probe was “at an advanced stage” and that legal developments in Italy did not affect India's investigation. [9]

Related Research Articles

AgustaWestland AW101 Multi-role helicopter family by AgustaWestland

The AgustaWestland AW101 is a medium-lift helicopter in military and civil use. First flown in 1987, it was developed by a joint venture between Westland Helicopters in the United Kingdom and Agusta in Italy in response to national requirements for a modern naval utility helicopter. Several operators, including the armed forces of Britain, Denmark, and Portugal, use the name Merlin for their AW101 aircraft. It is manufactured at factories in Yeovil, England and Vergiate, Italy; licensed assembly work has also taken place in Japan and the United States.

Agusta

Agusta was an Italian helicopter manufacturer. It was based in Samarate, Northern Italy. The company was founded by Count Giovanni Agusta in 1923, who flew his first airplane in 1907. The MV Agusta motorcycle manufacturer began as an offshoot of the Agusta aviation company at the end of the Second World War, as a means to save the jobs of employees of the Agusta firm.

AgustaWestland

AgustaWestland was an Anglo-Italian helicopter design and manufacturing company, which was a wholly owned subsidiary of Finmeccanica. It was formed in July 2000 as an Anglo-Italian multinational company, when Finmeccanica and GKN merged their respective helicopter subsidiaries to form AgustaWestland, with each holding a 50% share. Finmeccanica acquired GKN's stake in AgustaWestland in 2004.

AgustaWestland AW109 Helicopter

The AgustaWestland AW109, originally the Agusta A109 is a lightweight, twin-engine, eight-seat multi-purpose helicopter built by the Italian manufacturer Leonardo S.p.A.. It was the first all-Italian helicopter to be mass-produced.

Agusta A129 Mangusta Family of attack helicopters by Agusta, later AgustaWestland

The Agusta A129 Mangusta is an attack helicopter originally designed and produced by Italian company Agusta. It is the first attack helicopter to be designed and produced wholly in Europe. It has continued to be developed by AgustaWestland, the successor company to Agusta. The A129 has undergone several combat deployments since entering service with the Italian Army in the 1990s.

Leonardo S.p.A. Italian defense and aerospace company

Leonardo S.p.A., formerly Leonardo-Finmeccanica and originally Finmeccanica, is an Italian multinational company specialising in aerospace, defence and security. Headquartered in Rome, Italy, the company has 180 sites worldwide. It is the eighth largest defence contractor in the world based on 2018 revenues. The company is partially owned by the Italian government, which holds 30.2% of the company's shares and is its largest shareholder.

AgustaWestland AW609 Twin-engine tiltrotor VTOL aircraft

The AgustaWestlandAW609, formerly the Bell/Agusta BA609, is a twin-engined tiltrotor VTOL aircraft with a configuration similar to that of the Bell Boeing V-22 Osprey. It is capable of landing vertically like a helicopter while having a range and speed in excess of conventional rotorcraft. The AW609 is aimed at the civil aviation market, in particular VIP customers and offshore oil and gas operators.

Air Chief Marshal Shashindra Pal Tyagi, more commonly known as 'S P Tyagi,' served as the 20th Chief of Air Staff of the Indian Air Force and served from 31 December 2004 to 31 March 2007. He was succeeded by Air Chief Marshal Fali Homi Major.

Lockheed Martin VH-71 Kestrel Variant of the AgustaWestland AW101

The Lockheed Martin VH-71 Kestrel was a variant of the AgustaWestland AW101 that was being manufactured to replace the United States Marine Corps' Marine One U.S. Presidential transport fleet. Originally marketed for various competitions as the US101, it was developed and manufactured in the US by a consortium headed by Lockheed Martin, consisting of Lockheed Martin Systems Integration – Owego (LMSI), AgustaWestland and Bell Helicopter.

AgustaWestland AW149

The AgustaWestland AW149 is a medium-lift multi-role military helicopter developed by AgustaWestland, now Leonardo, launched in 2006. On 20 June 2011 AgustaWestland announced the AW189, a civilian development of the AW149, for service in 2013.

AgustaWestland AW139 Twin-engined, medium-lift helicopter manufactured by Leonardo

The AgustaWestland AW139 is a 15-seat medium-sized twin-engined helicopter developed and built by AgustaWestland. It is marketed at several different roles, including VIP/corporate transport, offshore transport, fire fighting, law enforcement, search and rescue, emergency medical service, disaster relief, and maritime patrol. In addition to AgustaWestland's manufacturing facilities in Italy and the United States, the AW139 is produced in Russia by HeliVert, a joint venture between AgustaWestland and Russian Helicopters.

AgustaWestland AW119 Koala Single-engine, eight-seat utility helicopter manufactured by Leonardo

The AgustaWestland AW119 Koala, produced by Leonardo since 2016, is an eight-seat utility helicopter powered by a single turboshaft engine produced for the civil market. Introduced as the Agusta A119 Koala prior to the Agusta-Westland merger, it is targeted at operators favoring lower running costs of a single-engine aircraft over redundancy of a twin.

AgustaWestland AW159 Wildcat Improved series of the Westland Super Lynx military helicopter

The AgustaWestland AW159 Wildcat is a British military helicopter. It is an improved version of the Westland Super Lynx designed to serve in the battlefield utility, search and rescue and anti-surface warfare roles. In British service, common variants are being operated by both the Royal Navy and British Army, having replaced their Lynx Mk.7/8/9 predecessors. The AW159 has also been offered to several export customers, and has been ordered by the Republic of Korea Navy and the Philippine Navy.

AgustaWestland AW189 Twin-engined, medium-lift helicopter manufactured by Leonardo

The AgustaWestland AW189 is a twin-engined, medium-lift helicopter manufactured by Leonardo S.p.A.. It is derived from the AW149, and shares similarities with the AW139 and AW169.

AgustaWestland AW169 Twin-engine light utility helicopter

The AgustaWestland AW169 is a twin-engine, 10-seat, 4.8t helicopter developed and manufactured by the helicopter division of Leonardo. It was designed to share similarities with the larger AgustaWestland AW139 and AgustaWestland AW189.

Giuseppe Orsi

Giuseppe Orsi is an Italian engineer, businessman, and corporate executive. He had a long career at Finmeccanica, Italy's leading high-technology group, and in November 2011 was appointed its Chief Executive Officer and Chairman.

Pier Francesco Guarguaglini is an Italian engineer, university educator and businessman. He is best known for his nine-year term (2002–2011) as chairman of Finmeccanica, a partly state-owned Italian aerospace and defence conglomerate.

Indian Rotorcraft Limited (IRL) is a company specialising in the manufacture of helicopters within India for the global market. Established in 2010, it is operated as a joint venture between Indian conglomerate Tata Sons and Anglo-Italian defense company Leonardo S.p.A.. Ground was broken on a dedicated facility at Rajiv Gandhi International Airport, Hyderabad in March 2012; its completion has been delayed reportedly due to protracted rulings from overseeing Indian government agencies.

2013 Indian helicopter bribery scandal

Also referred to as the AgustaWestland VVIP chopper deal, the Indian helicopter bribery scandal by Congress led UPA Government refers to a multimillion-dollar corruption case in India, wherein money was paid to middlemen and Indian officials in 2006 and 2007 to purchase helicopters for high level politicians. As per the CBI, this amounted to ₹2.5 billion (US$33 million), transferred through bank accounts in the UK and UAE.

Lorenzo Borgogni is an Italian businessman who was the longtime director of external relations at Finmeccanica, a partly government-owned company specialising in aerospace, defense and security.

References

  1. ↑ Spruce, Terry (May 27, 2011). "Bruno Spagnolini appointed chief executive at AgustaWestland". Corporate Jet Investor.
  2. 1 2 3 4 Huber, Mark (Sep 3, 2013). "Corruption Trial Set To Resume for Orsi and Spagnolini". AIN Online.
  3. 1 2 Peruzzi, Luca. "PARIS: Interview: AgustaWestland chief executive Bruno Spagnolini". Flight Global.
  4. ↑ "Lynx World Speed Record Helicopter Restored 25 Years On". Helicopters Magazine. Jul 11, 2011. Archived from the original on November 12, 2014. Retrieved November 12, 2014.
  5. ↑ "AW119 Koala". Global Security.
  6. ↑ "Russian Helicopters & AgustaWestland Sign Agreement To Develop A New 2.5 Tonne Helicopter". Ads News. Jul 10, 2012. Archived from the original on 2014-11-12.
  7. ↑ "Weststar aviation services honoured as recipient of 500TH AgustaWestland AW139" (PDF). Weststar Aviation. Archived from the original (PDF) on 2014-11-12. Retrieved 2014-11-12.
  8. ↑ "Agusta-Westland plan helicopter plant in Brazil to service oil industry boom". MercoPress. Jan 22, 2013.
  9. 1 2 3 4 5 6 Parodi, Emilio (Oct 9, 2014). "Finmeccanica looks to rebuild India ties after former head convicted". Reuters.
  10. 1 2 Cassin, Richard (Jun 20, 2013). "Finmeccanica boss Orsi on trial in Milan". FCPA Blog.
  11. 1 2 "Giuseppe Orsi, ex-CEO, Finmeccanica & Bruno Spagnolini, ex CEO, AgustaWestl". Pakistan Defence. Jun 20, 2013.
  12. ↑ "Chopper scam: Bribery trial of former Finmeccanica CEO opens". Indian Express. Jun 19, 2013.
  13. ↑ "Chopper Scam Archives". Indian Express. Retrieved 1 January 2014.
  14. ↑ "Finmeccanica helicopter corruption trial enters final stages". Reuters. Jun 12, 2014.
  15. ↑ Kington, Tom (Jul 29, 2014). "Finmeccanica Kickback Probe Dropped Amid Executives' Corruption Trial". Defense News. Archived from the original on July 30, 2014.
  16. ↑ Sylvers, Eric (Oct 9, 2014). "Ex-Finmeccanica Chief Cleared of Corruption Charge". Wall Street Journal.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.