Wed, Dec 08, 2010
Contract Worth $73 Million For Military Helos Dumped Due To
Price, Ethical Questions
The Government of the Philippines has cancelled a deal to
purchase military helicopters worth $73 million from PZL Swidnik
amidst allegations that the bid committee rigged the process. While
no actual evidence of collusion between the committee and PLZ
Swidnik has been found, the government now says the price is too
high.
The Philippine Air Force has been trying since 2007 to upgrade
its fleet of attack helicopters which it says it needs to fight
terrorists and Muslim separatist insurgencies. Inquirer.net reports
that a Philippine defense department bid committee had received no
bids for eight helicopters in a series of tenders in 2008 and 2009,
and only received the bid from PLZ Swidnik after the parameters had
been reduced from eight to seven aircraft with different engine and
payload specs.
Philippine President Benigno Aquino halted the process and
ordered the investigation in October. He said the rules had been
"rigged" to favor the Polish defense contractor. That allegation
was not proven during the course of the inquiry, but the panel did
conclude that the altered tender was "disadvantageous to the
government."
Defense ministry spokesman Eduardo Baltac said that Philippine
Defense Secretary Voltaire Gazmin had approved the declaration of a
failure of bidding. He has also frozen plans to acquire combat
utility helos for the Philippine Navy. Gazmin said the country's
efforts to modernize its military equipment was "going to encounter
some delays."
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