Finmeccanica chief to stay on to clear his name

FINMECCANICA SpA chairman and chief executive Giuseppe Orsi, subject of an anti-corruption probe over an Indian helicopter deal, has pledged to stay in his post to clear his name after weekend reports said he may quit.

Orsi is under investigation in a probe centering on a €560 million ($724.4 million) Indian helicopter contract won by Finmeccanica, which is controlled by the Italian government.

He denies any wrongdoing but in recent days two centre-left parties have raised questions about whether he should remain at the helm of the countrys second-biggest private group, and local media have said he is increasingly isolated. Orsi’s lawyer, Ennio Amodio, said in Milan the Finmeccanica boss would quit if the government told him to do so, but added there was no indication that this was the case.

“His personal intention is to stay on, defend himself and demonstrate that accusations against him are groundless,” Amodio said on Monday, acknowledging that pressure on Orsi to quit was mounting.

The lawyer blamed a conspiracy “by various groups to eliminate him from the Italian scene,” without elaborating on who might be behind such a plot.

Orsi, who was appointed chief executive in May 2011, took on responsibility as chairman in December last year after his predecessor, Pier Francesco Guarguaglini, was forced to resign over a separate corruption investigation.

He has since been steering the loss-making company through a tough restructuring, but has been weakened by news that he was under investigation.

The investigation was triggered by allegations of an ex-Finmeccanica employee, himself under investigation. The probe focuses on alleged kickbacks that were paid to secure an order of 12 helicopters India awarded in 2010.

A meeting between Finmeccanica’s top executives and the government due on Tuesday to discuss alliance prospects for Europe’s No. 3 defence group was cancelled, ostensibly because this was no longer seen as urgent after the planned tie-up between EADS and BAE Systems fell apart. Italian media said at the weekend that the meeting had been cancelled because Prime Minister Mario Monti was taking time to evaluate Orsi’s position. – (Reuters)