Giuseppe Orsi arrest highlights Italian politics' odd relationship with business

Finmeccanica chief arrested.

Giuseppe Orsi, the chairman of Italian giant defence and aerospace group Finmeccanica, was arrested on Tuesday on suspicion of corruption.

The investigation relates to the sale of 12 helicopters to the Indian government by AgustaWestland, the high tech helicopter unit of Finmeccanica back in 2010, at which time Orsi was at the division’s helm.

He now stands accused of bribing the Indian government to secure the sale. And he is not alone: the current managing director of AgustaWestland is under house arrest, an option not considered for Orsi, who judges said could potentially pervert the course of justice.

Unsurprisingly, Finmeccanica shares have tanked after initially being suspended, falling by more than 9 per cent to €4.236.

And this is merely the first layer of a complex story. According to the judge, bribery was “part of the firm’s philosophy” – hardly a compliment, but definitely less flattering considering the fact that the State is a 30 per cent shareholder in the business.

Finmeccanica has expressed solidarity with Mr Orsi, but Prime Minister Mario Monti declared, in his understated manner, that “there is a problem with respect to Finmeccanica governance that we will have to tackle”.

That’s certainly a good idea. But it is worth considering that it was Monti himself that appointed Mr Orsi as chairman at the end of 2011, following investigations into the practices of previous chairman Pier Francesco Guarguaglini and his wife, then head of another Finmeccanica subsidiary.

Orsi’s arrest comes just one day after the resignation of the Pope and it is possibly one of the few stories capable of pushing that news down to second place on Italian newspapers… Primarily because there is an election around the corner, and the German-born Vatican resident tends not to be active in local politics.

It’s election time, which has proven to be during the years intense and tiring time for the judiciary.

Investigations are still ongoing on Monte dei Paschi di Siena, the oldest bank in the world and the third largest in Italy by assets.

Not to be outdone, the head of State-owned energy company Eni Paolo Scaroni has received notice that he is under investigation for bribery.

And let’s not forget, that Italy’s technocrat saviour, and whose appointee is under arrest - Mario Monti - is running for office, as is the man most synonymous with Italian political intrigue - Silvio Berlusconi.

So, are we likely to see major changes and a clean up as a result of these elections? God knows! Or does he… It’s hard to tell now his spokesperson has thrown in the towel.

Giuseppe Orsi. Photograph: Getty Images

Sara Perria is the Assistant Editor for Banking and Payments, VRL Financial News

Getty
Show Hide image

Our union backed Brexit, but that doesn't mean scrapping freedom of movement

We can only improve the lives of our members, like those planning stike action at McDonalds, through solidarity.

The campaign to defend and extend free movement – highlighted by the launch of the Labour Campaign for Free Movement this month – is being seen in some circles as a back door strategy to re-run the EU referendum. If that was truly the case, then I don't think Unions like mine (the BFAWU) would be involved, especially as we campaigned to leave the EU ourselves.

In stark contrast to the rhetoric used by many sections of the Leave campaign, our argument wasn’t driven by fear and paranoia about migrant workers. A good number of the BFAWU’s membership is made up of workers not just from the EU, but from all corners of the world. They make a positive contribution to the industry that we represent. These people make a far larger and important contribution to our society and our communities than the wealthy Brexiteers, who sought to do nothing other than de-humanise them, cheered along by a rabid, right-wing press. 

Those who are calling for end to freedom of movement fail to realise that it’s people, rather than land and borders that makes the world we live in. Division works only in the interest of those that want to hold power, control, influence and wealth. Unfortunately, despite a rich history in terms of where division leads us, a good chunk of the UK population still falls for it. We believe that those who live and work here or in other countries should have their skills recognised and enjoy the same rights as those born in that country, including the democratic right to vote. 

Workers born outside of the UK contribute more than £328 million to the UK economy every day. Our NHS depends on their labour in order to keep it running; the leisure and hospitality industries depend on them in order to function; the food industry (including farming to a degree) is often propped up by their work.

The real architects of our misery and hardship reside in Westminster. It is they who introduced legislation designed to allow bosses to act with impunity and pay poverty wages. The only way we can really improve our lives is not as some would have you believe, by blaming other poor workers from other countries, it is through standing together in solidarity. By organising and combining that we become stronger as our fabulous members are showing through their decision to ballot for strike action in McDonalds.

Our members in McDonalds are both born in the UK and outside the UK, and where the bosses have separated groups of workers by pitting certain nationalities against each other, the workers organised have stood together and fought to win change for all, even organising themed social events to welcome each other in the face of the bosses ‘attempts to create divisions in the workplace.

Our union has held the long term view that we should have a planned economy with an ability to own and control the means of production. Our members saw the EU as a gravy train, working in the interests of wealthy elites and industrial scale tax avoidance. They felt that leaving the EU would give the UK the best opportunity to renationalise our key industries and begin a programme of manufacturing on a scale that would allow us to be self-sufficient and independent while enjoying solid trading relationships with other countries. Obviously, a key component in terms of facilitating this is continued freedom of movement.

Many of our members come from communities that voted to leave the EU. They are a reflection of real life that the movers and shakers in both the Leave and Remain campaigns took for granted. We weren’t surprised by the outcome of the EU referendum; after decades of politicians heaping blame on the EU for everything from the shape of fruit to personal hardship, what else could we possibly expect? However, we cannot allow migrant labour to remain as a political football to give succour to the prejudices of the uninformed. Given the same rights and freedoms as UK citizens, foreign workers have the ability to ensure that the UK actually makes a success of Brexit, one that benefits the many, rather than the few.

Ian Hodon is President of the Bakers and Allied Food Workers Union and founding signatory of the Labour Campaign for Free Movement.