Defense Ministry to sanction Omnipol over planes' defect

Prague, Aug 1 (CTK) - The Czech Defence Ministry will impose sanctions on the Omnipol firm because the defects on new CASA transport aircraft's passive defence system have not been removed on time, its representatives told CTK yesterday.

Czech and Spanish experts were testing the system in one of the four Casa C-295 planes last week. The Czech military received the first of the four Spanish-made aircraft in January 2010.

The ministry will fine Omnipol for not managing to repair the bad defence systems. Each day of the delay will mean a discount of several tens of a per thousand of the original price of the systems, or 150 million crowns.

The ministry was considering complete withdrawing from the contract. The White&Case law firm is now analysing the contracts on CASA aircraft.

If the defects are not removed in the next months, the ministry may withdraw from the contract, Deputy Defence Minister Rudolf Blazek said.

He said the ministry's priority is to have the defects removed and the planes prepared to function properly. Originally, the CASAs were to be used in Afghanistan this year.

A CASA plane can carry 71 soldiers or 48 fully equipped paratroops or 24 wounded soldiers in the medical version.

The European Commission said the Czech Republic did not observe the EU rules of placing public orders because it opted for the deal for 132 million euros without a tender.

According to media, the acquisition of the planes alone was suspicious and the contract was probably overpriced.

($1 = 16.963 crowns)