Italian government has appointed a new CEO to head the scandal-hit defence giant Finmeccanica, accused of bribing Indian officials for clinching a Rs 3,600-crore VVIP chopper deal, to ramp up operations.
Mauro Moretti, 61, known for turning around previously loss-making state railways Ferrovie dello Stato, was appointed as the CEO of the state-controlled company.
Italian Prime Minister Matteo Renzi, who announced the shake up, also appointed women as CEOs of three other state-controlled firms.
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Renzi described the four new directors as "high-quality professionals with acknowledged authority."
The four managers will "work to reach the ambitious strategic objectives of companies which represent fundamental assets for the country," the Italian premier was quoted as saying by Italian aeronautical news agency Avionews.
The Rome-based defence giant is ensnared in a controversy over alleged kickbacks it paid to Indian officials to clinch the Rs 3,600 crore VVIP chopper deal in favour of AgustaWestland, the company's Indian subsidiary.
India had in January scrapped the helicopter deal, nearly a year after the bribery allegations surfaced.
The Italian prosecutor, who carried out the preliminary inquiry in Milan, had alleged that the CEO of Finmeccanica had used services of middlemen to bribe Indian officials.
Meanwhile, the shares of Finmeccanica sharply dipped after the government announced Moretti, a newcomer to the aerospace and defence industry, as the new CEO.
Finmeccanica shares dropped 2.7 per cent to USD 9.56 on the nomination of Moretti, replaces Alessandro Pansa, who took over the scandal-plagued firm a year ago.
Moretti's gross annual salaries will be capped at 238,000 euros, the same as the country's president, Italian news agency ANSA reported.
