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Australia withheld Tiger progress payments across 2008 despite dispute settlement

20th February 2009 - 10:48 GMT | by in Canberra


The Australian Defence Materiel Organisation (DMO) continued to withhold part payments from Australian Aerospace between May and December last year for its delayed acquisition of Eurocopter Tiger armed reconnaissance helicopters despite a settlement being signed in May 2008 to resolve longstanding contract dispute.

DMO issued a stop payment on the acquisition – designated project Air 87 - on 1 June 2007 due to delays in the training of Australian army pilots and establishment of through life support arrangements. A formal dispute negotiation process was launched in October 2007 resulting in a May 2008 deed of agreement to reschedule deliveries and

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