By Alexis Romero
MANILA, Philippines - The Defense department has asked Malacañang to allow the release of a 52-percent down payment to the South Korean firm that offered to supply 12 fighter jets to the military.
Defense Secretary Voltaire Gazmin said they have submitted their recommendation to the Office of the President, which will have the final say on the matter.
“We recommended approval of the DP (down payment) and progress billing,” Gazmin said in a text message Thursday.
The law permits state agencies to pay a 15-percent down payment to suppliers while the rest of the amount would be paid upon the delivery of goods.
South Korean firm Korean Aerospace Industries (KAI) wants the Philippines to pay 52 percent down payment to cover its manufacturing costs. Such payment scheme would require the approval of President Aquino.
Read the full story at Philstar