Defense supplier denies Hueys obsolete, cries extortion

From ABS-CBN (Mar 15): Defense supplier denies Hueys obsolete, cries extortion

The joint venture tapped to supply 21 Huey helicopters for the government’s use insists that the supplies in its inventory are not obsolete.

The joint venture of Rice Aircraft and Eagle Copters Inc. also denied allegations of financial impropriety and kickbacks in their bid for the project.

The joint venture won a P1.2-billion contract in February 2014 for the supply of 21 refurbished units of UH-1 helicopters. The acquisition project was questioned, however, after a military official claimed the units were obsolete.

“These helicopters are conceivably the most highly modified and advanced version of the UH-1 that has ever existed. These are also configured with crash-worthy self-sealing main fuel cells,” said joint venture representative Robert Arthur Rice Jr. and Rice Aircraft vice president Phil Kemp.

The group is also asking the government to probe a Filipino named Rhodora Alvarez for allegedly misrepresenting herself in the company.

“As of last month, the joint venture had been informed that Ms. Alvarez approached the media in the Philippines and she was providing fabricated stories regarding the UH-1 project. She was said to be attempting to defame the reputation of the joint venture as well as the Department of the National Defense,” the group said.

It said it put its full trust in Alvarez in the procurement process but later realized she may have misappropriated funds given to her.

The group also alleged Alvarez asked them to give her 15% of the contract amount “right away” as part of her commission.

When her authority for the procurement was revoked, however, “the joint venture has received several electronic messages from her threatening to sabotage the project unless the joint venture heeds her demand,” the group alleged.

It denied the supply contract was a “case of corruption” but a “case of attempted extortion.”

The group also insists its supply is top of the line.

“Each helicopter was fully refurbished and underwent comprehensive ground and flight testing at the joint venture’s facility in California, USA prior to being disassembled for containerized shipping to the Philippines,” the group said.

It said the UH-1D models it has in its inventory are newer than the UH-1H models currently in the market. The UH-1D configuration was manufactured by German firm Dornier, it explained.

It added the UH-1D models underwent a Structural Life Extension Programme (SLEP) upgrade, which remains unmatched by other UH-1 models. The UH-1H models, for example, have corrosion and humidity problems, it added.

“To date, all 21 helicopters were already shipped to the Philippines and 13 of them have already completed the acceptance process under the [terms of reference] and are operational and fully mission-capable,” the joint venture said.

The joint venture said it had asked for time until April 15 to complete the turnover of the rest of the helicopters, citing unforeseen events such as the port congestions in Manila and in the West Coast as having delayed the delivery of the other helicopters.

Experts also encountered difficulties in performing test flights and topping checks because of bad weather, it added.

“Despite the grant of extension, the joint venture would like to emphasize that it is still paying liquidated damages to the government due to its incurring of delay,” it said.

http://www.abs-cbnnews.com/nation/03/15/15/defense-supplier-denies-hueys-obsolete-cries-extortion