Tearing apart a $2.1 billion deal signed by the UPA to procure P8 I maritime reconnaissance aircraft, the central auditor has said in a report that deliberate attempts were made to favour US company Boeing over its Spanish competitor.
In a scathing report, the Comptroller and Auditor General (CAG) has said the Boeing was favoured as the defence ministry `enhanced’ a financial bid by EADS CASA, Spain to include a 20-year support package as well. This support package was not included in the Boeing offer, hence it turned up to be cheaper, the CAG has said in a report tabled in parliament today.
Coming down heavily on the deal, which was inked to meet urgent requirements of the navy for a long range recon platform, the CAG has also said that the Boeing has not met its offset obligations of $ 641 million till date, despite the contract specifying that all obligations have to be fulfilled by August 2016.
Specifying details, the report says that while torpedoes were procured as part of the deal, a critical ammunition for anti submarine warfare has not been procured even now. “In the absence of ‘X’ Bombs, the ASW capability of the aircraft could only be partially fulfilled,” it says. It also has observations on the limitations of sonabuoys ordered by the Navy.