Finmeccanica board replaces embattled chairman
By Associated Press
Dec 1, 2011 1:20 PM CST

The board of the state-controlled aerospace and engineering giant Finemeccanica has replaced its chairman, who has been caught up in a corruption probe.

Finmeccanica has added the job of chairman to CEO Giuseppe Orsi's duties, after chairman Pier Francesco Guargualini resigned under pressure.

The company is 30-percent controlled by the Italian Treasury. The spiraling corruption probe into allegations of a slush fund to funnel money to political parties created an emergency for Italian Premier Mario Monti's fledgling government.

Monti had called for a "rapid and responsible solution."

Guarguaglini, who is under investigation for making false invoices and tax fraud, has denied wrongdoing.