Panama rejects drones for failed radar proposal
PANAMA has added another cloud to the those already overhanging Italian defense contractor Finmeccanica, by rejecting a proposal by its subsidiary Selex to use drones to replace a failed radar system that the previous government purchased for $125 million.
The company is already being investigated for alleged bribery in obtaining contracts in various countries, and specifically Panama where it is believed Valtrex Lavitola funneled money to senior government officials, including, according to court documents the then president , Ricardo Martinelli.
Minister of Public Security Rodolfo Aguilera sent a letter in response to a proposal that Selex made in April to address the technical defects of the radars. They are unable to detect the speedboats used by drug traffickers, which was the primary reason they were purchased.
Aguilera said the Selex proposal "is unacceptable" because the costs of operating the aircraft are unknown. It also notes that the offer is proof that the radars do not function as intended, and therefore the company should reimburse the government for their cost.
So far the company has installed seven of the 19 radars. Those seven have failed performance tests.
The defense contractor now has a month to present a new proposal.
The government is also investigating allegations that the company paid bribes to former government officials in exchange for the contract.
"We are going to protect the interest of Panamanians, making sure that if there were overcharges, they will be repaid, and if there was a crime, it will result in imprisonment," Aguilera said.