Thursday, June 3, 2010

News Update DND seals P2.8-billion deal for Polish helicopters

MANILA, Philippines - The Department of National Defense (DND) is acquiring eight brand new combat utility helicopters from Poland instead of Israel, Defense Undersecretary for Modernization Antonio Romero said yesterday.

Romero said a government-to-government contract worth P2.8 billion was recently signed by the defense department with its Polish counterpart for the purchase of the combat utility helicopters.

“We expect initial delivery of four units within a year,” Romero said. The defense department earlier closed a P3-billion deal with Israel for the acquisition of a fleet of reconditioned single-engine Cobra attack helicopters.

Romero said the deal did not push through because the Philippine Air Force (PAF) rejected it.

Poland-based helicopter manufacturer Swidnik will produce the helicopters which, Romero said, had met PAF requirements, particularly the lifting capability.

Romero said the helicopter purchase deal with the Polish government underwent scrutiny by defense acquisition monitors from the Makati Business Club and the Catholic Bishops’ Conference of the Philippines.

Romero also belied reports that the defense department has been rushing the acquisition of military equipment before the term of Defense Secretary Norberto Gonzales ends on June 30.

Sen. Francis Pangilinan earlier accused Gonzales of engaging in midnight deals for the procurement of second-hand military equipment worth P300 billion before his term expires.

Gonzales said Pangilinan was not properly informed about the modernization program of the Armed Forces of the Philippines (AFP).

“I am just a phone call away. It would have been a good practice if the good senator sought explanation from me directly,” he said. Gonzales also denied allegations that there is an attempt to use the entire P300-billion AFP modernization fund under his term.

“The amount represents the unbudgeted portion of the P331 billion total funds earmarked for the AFP modernization 15 years ago. It is impossible to use up the entire amount in seven months and we were not crazy to attempt to do so. We simply sought to maximize what we thought was achievable in my seven months’ stay in the DND,” he said.

The modernization program, Gonzales said, is expiring this year so they are looking at ways to speed up acquisitions.

“Processes had been made and we looked at how we could speed them up. We introduced government-to-government mode of purchase precisely to make things move faster and at the same time to do away with controversial biddings,” he said.

He said the AFP had started preparing for acquisitions before he was appointed defense secretary last November.

He said deliveries made under his term would be made in the next two to three years.

Gonzales confirmed there are exploratory talks with countries that have offered to modernize the AFP.

Sources in the diplomatic community, however, said these countries have decided to proceed with the deal under the next administration. Gonzales said the documents related to the defense deals are open to public scrutiny. - By Jaime Laude