By Shin Hyon-hee
The country’s defense acquisition officials came under fire Thursday during a parliamentary audit for a string of fresh allegations of illicit participation of an arms broker, buying subquality supplies and other irregularities.
According to Rep. Baek Kun-ki of the main opposition New Politics Alliance for Democracy, a Korean weapons brokerage based in the U.S., was involved in the Defense Acquisition Program Administration’s 2012 bid to adopt new AW-159 Wildcat helicopters in breach of the agency’s revised guidelines of 2010 ― which ban the participation of agents in a procurement project worth $2 million or higher. The chopper contract was valued at 589 billion won ($503.2 million).
In its defense, the Seoul-based DAPA said the company only served as a “consultant,” not a broker directly involved in the deal. But in related documents submitted by the agency for a parliamentary audit, it was specified as a “trade agent,” Baek refuted.
“The company can hardly evade questions about its suspected brokering activity given that it took part in a briefing session on the helicopter purchase in January 2012 as a trade agent,” he said.
“It is unacceptable that DAPA broke its own rules to facilitate the broker’s participation by simply changing its position as a consultant.”
The allegation emerged as a pangovernmental team consisting of prosecutors, state auditors, police and tax officials are looking into alleged malpractices by the country’s major defense brokers who have held sway over high-profile state procurement deals.
The helicopter bid was at the center of its probe, with at least seven Navy executives indicted for forging the Wildcat’s test certificates to meet the qualifications. Former Patriots and Veterans Affairs Minister Kim Yang was also arrested in late June on charges of taking some 1.4 billion won in bribes from its U.K. manufacturer Agusta Westland.
“With our defense industry lacking competitive edge, the back-scratching alliances between military and industry officials make the essential problem,” NPAD chairman Rep. Moon Jae-in said, calling for the nurturing of small- and midsize firms to consolidate the fundamentals.
DAPA Minister Chang Myoung-jin conceded, saying there is a “possibility for corruption originated from personal connections” and vowing to continue to implement steps to stamp out irregularities and take greater care of major programs on his own.
During the session, opposition lawmakers also launched a salvo on the rampant supply of faulty equipment in the military.
After analyzing data by the Defense Agency for Technology and Quality, NPAD Rep. Kim Kwang-jin said that 103 out of 110 life jackets distributed in 2012 to the sailors of the 7,600-ton Aegis-equipped destroyer Seoae Ryu Seong-ryong failed to pass the quality test due to defects in their buoyant materials.
NPAD Rep. Ahn Gyu-baek raised criticism for a perceived lax management of night vision goggles, saying Seoul’s current regulations do not stipulate any lifespan for quality assurance and thus the tools may foil soldiers’ night operations if used for too long.
(heeshin@heraldcorp.com)