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VIP jet contract debacle rages on

The battle over a R826 million VIP jet contract rages on, with the Department of Defence and the angered bidder pointing fingers at each other. This week both parties appeared in court to argue over the alleged cancellation of the tender for two aircraft that were meant to transport President Jacob Zuma and Deputy President Kgalema Motlanthe. However, lawyers for both sides used the quiet courtroom at the Pretoria High Court to revive talks about talks in the hope of reaching a settlement. The Ado Air Aviation Group, a company that specialises in VIP aircraft and yacht charters, had won a five-year contract to supply two VIP planes last March.

However, when Armscor, the state arms procurement entity, placed an advert in July, calling for the supply of two VIP jets, the company launched review proceedings in court. Negotiations with the department over the details of the contract had halted, and another supplier, Execujet, was roped in. In court papers the department says it had initially suspected tender irregularities, and thus considered cancelling the contract. In an affidavit, Defence secretary Sam Gulube says the department is now “satisfied with the answers given and with the integrity of the procurement process”. Contacted for comment, Ado Air lawyer Gerrie Ebersohn said : “It’s a difficult two weeks. In the next two weeks I am going to be extremely silent to the media.”

According to Gulube’s affidavit, previous discussions had broken down suddenly. The defence force did not believe the contract had been cancelled, but that there was a disagreement about the details of the final contract. The VIP aircraft debacle has been particularly embarrassing for the government. The air force’s own planes are not up to standard and chartered aircraft have proved problematic since 2009. This week, Defence Department spokesman Ndivhuwo Mabaya said the leasing and purchase processes were ongoing and the department would communicate the details once the deals had been concluded.

Source: iol.co.za
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