Finmeccanica to shift powers from CEO to MD-reports

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Italian defence group Finmeccanica is set to transfer some key powers from its chief executive, who is under investigation in a possible graft investigation, to the managing director, two Italian newspapers reported without citing sources.

Shareholders in the state-controlled conglomerate meet on Wednesday.

Financial daily Il Sole 24 Ore and la Repubblica newspaper both said Chief Executive Giuseppe Orsi was set to lose his powers to decide strategies, acquisitions and finances, Reuters reports.

The move would boost the role of current managing director and chief financial officer Alessandro Pansa.

Orsi is under investigation in Naples after a former employee, himself under investigation, alleged that bribes had been paid in an Indian helicopter contract and that he gave 10 million euros ($13 million) to the Northern League political party. Orsi has denied any wrongdoing.

The Italian state owns 32 percent of Finmeccanica.