By Jaime Sinapit
MANILA - The project to procure 12 units of Korean trainer jets worth a total P18.9 billion for the Philippine Air Force continues to hang over issues of downpayment and after-sales service turnaround, but the Department of National Defense, which recommended a counter-offer, remains confident the deal will push through.
Apparently, sources said, President Benigno Aquino III himself seemed not keen on signing the contract owing to the hurdles that cropped up in DND negotiations with manufacturer Korean Aerospace Incorporation (KAI) for the sale of the 12 FA-50s.
Among the key issues, as identified earlier by Undersecretary Fernando Manalo, is the 52 percent “advance payment” sought by KAI before it starts production. Republic Act 9184 only allows 15-percent advance payment.
Manalo is head for Finance, Munitions, Installations and Materiel of the DND.
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