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CEO arrested in new Italy scandal

Tuesday, Feb 12, 2013 - 00:58

Feb. 12 - Italian police have arrested Giuseppe Orsi, the head of the state-contolled defence group Finmeccanica, in the latest in a series of scandals to rock the country's business world ahead of an election this month. Sonia Legg reports.

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Another scandal rocks Italy's business world. This time the CEO and Chairman of the state-controlled defence group Finmeccanica is at the centre of it. Giuseppe Orsi has been arrested by Italian police investigating alleged corruption over the sale of helicopters to the Indian government. Orsi was head of the helicopter unit when bribes were apparently paid to secure the sale of 12 executive aircraft. Three other people are also said to have been placed under house arrest and Finmeccanica's offices in Milan searched. The state-controlled defence contractor has expressed support for Orsi who has been steering them through restructuring to stem losses. But with two weeks to go until elections in Italy, the arrest comes at a sensitive time. A derivatives scandal at Monte dei Paschi bank has been influencing voters as has an alleged bribery case involving oil service group Saipem. Shares in Finmeccanica fell 11 percent after reports of the arrest. Orsi has denied any wrongdoing.

CEO arrested in new Italy scandal

Tuesday, Feb 12, 2013 - 00:58

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