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.