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Saturday, January 26, 2008

 

Attack helicopter purchase scrapped

Defense department uncovers irregularities in bidding for night-capable helicopters

By Anthony Vargas, Reporter

THE Department of National Defense  on Friday rescinded the P1.2-billion contract for night-capable attack helicopters following alleged irregularities in the bidding process.

At the same time, the Defense department recommended that Asian Aerospace Corp. (AAC), the supposed winning bidder, be barred from joining future biddings involving the acquisition of military hardware. AAC is the local partner of US company McDonnell Douglas.

Defense Undersecretary Ariston de los Reyes, head of the fact-finding team that investigated the matter, said the bidding procedures for six MD-530F attack helicopters were not followed.

The undersecretary said the fact-finding team found that AAC is the only bidder that prequalified, and it made some “alterations” or modifications in the specifications of the MD-530F helicopters.

“If there had been consummation of the acquisition of the helicopters, we could have ended up with helicopters that were not the ones intended by the department to be acquired,” de los Reyes told reporters in a press conference at Camp Aguinaldo.

He said the fact-finding team found out that the helicopter offered for sale by AAC did not meet the specifications made by the Air Force.

The Air Force wanted an attack helicopter that had a minimum payload of 3,000lbs., inclusive of the pilot’s weight. However, AAC made it appear that the MD-530F met that payload requirement, which turned out to be false.

More detailed investigation to follow

De los Reyes added that Defense Secretary Gilberto Teodoro Jr. has directed the fact-finding team to dig deeper and conduct a more detailed investigation to identify who will be held liable for the irregularities in the bidding process.

“The Secretary of National Defense has ordered the investigating committee to conduct [a] more detailed investigation as to the possibility of some Defense department or AFP [Armed Forces of the Philippines] personnel being held liable,” he said.

The Defense department’s Bids and Awards Committee is chaired by Defense Assistant Secretary Roberto Nuqui, and its members include Directors Edna Gueverra, Gladys Cagadoc and Jerry Jalandoni. Its provisional members are Lt. General Antonio Romero and Maj. General Ike Insierto.

The undersecretary said Asian Aerospace could be also held liable for misrepresentation, when it said in their bidding papers that their aircraft complied with the minimum payload requirement set by the Air Force.

The investigation on the bidding stemmed from a complaint filed by PZL Swidnik S.A., a Poland-based company that claimed the bidding “favored” Asian Aerospace.

Swidnik was offering an advanced version of the Russian-made Mi-2 Plus attack helicopters, known as Kania or Kitty Hawk. Another company, Agusta-Westland of Italy was disqualified from the bidding after it could not guarantee that it could deliver its helicopters within a 12-month period.

The bidding for the acquisition of night-capable attack helicopters was opened in September last year as part of the military’s drive to modernize its equipment.

   

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