MANILA, Oct 4 (Reuters) - The Philippines has suspended two
tenders for military helicopters worth about ${esc.dollar}90 million due to
suspicions of graft, the defence department said on Monday.
A Polish firm owned by Italy&${esc.hash}39;s Finmeccanica <SIFI.MI> was
poised to be awarded one of the tenders, aimed at upgrading the
security forces&${esc.hash}39; arsenal to deal with insurgencies by Maoist
guerrillas and Muslim separatists that have killed 160,000
people and thwarted investment and development in the country.
President Benigno Aquino, who took office earlier this
year, has also vowed to crack down on corruption to boost the
economy.
Ernesto Boac, a retired general and head of the bids and
award committee at the defence department, said tenders for
seven attack and two multi-purpose helicopters had been
suspended while the defence minister probed possible graft in
the bidding.
"There are alleged collusions or conceived collusions
between members of those involved in the procurement with some
suppliers in the crafting of the technical specifications that
suited a particular manufacturer," Boac told reporters.
Boac said the suspension order covered the
post-qualification tests for seven multi-attack helicopters to
be awarded to Poland&${esc.hash}39;s PZL Swidnik, which was bought by
Anglo-Italian helicopter company Agusta Westland earlier this
year.
Agusta Westland is owned by Finmeccanica.
"Our action is to defer whatever are the next stages of the
bidding process," he said. Results from the inquiries are due
in 30 days.
Last year, PZL Swidnik, then a state-run firm, won a ${esc.dollar}60
million contract to supply eight combat utility helicopters
after Agusta Westland dropped out of the bidding.
In 2008, a tender for six night-capable attack helicopters
worth ${esc.dollar}29 million was also scrapped due to alleged collusions
between some army officials and U.S.-based MD Helicopters Inc.
Since 2002, the Philippines has spent more ${esc.dollar}640 million to
upgrade its weapons and logistics system.
(Reporting by Manny Mogato; Editing by John Mair and Miral
Fahmy)
Our Standards: The Thomson Reuters Trust Principles.
