US irked after left out of Czech military tenders
ISN
February 1, 2005
http://www.isn.ethz.ch/news/sw/details.cfm?ID=10693

ISN SECURITY WATCH (01/02/05) - The US has criticized
the Czech Defense Ministry for skirting public tenders
for over US$100 million worth of military equipment in
deals that seems to have upset some of the country’s
NATO allies, the respected business daily Hospodarske
noviny reported on Tuesday in a front-page spread. The
daily said the Czech Defense Ministry had opted
against an open competition for two major purchases
announced at the end of last year: the Saab-made RBS
70 Air Defense Missile System at a cost of more than a
billion crowns (US$43 million) and three Ericsson-made
weapons-locating systems for more than 1.5 billon
crowns (US$65 million). NATO has no formal regulations
that deal with purchases, which are left up to
national legislation. In the Czech Republic, the law
on tenders allows the army to avoid issuing a public
call if strategic military equipment, vital for the
country’s defense, is at stake. In a letter to the
Defense Ministry, the US embassy in Prague expressed
its concern over the two sales, but would not comment
further on the contents of the letter. An unnamed
diplomat was quoted as saying that the dispute
concerned the lack of a tender. In an interview with
the newspaper, shadow Defense Minister Petr Necas of
the Civic Democratic Party claimed that the US was not
alone in its criticism of the purchasing process.
After specifically mentioning France as particularly
irked, he went on to say that the Czech Defense
Ministry had developed a “tragic reputation” among
NATO allies. Ministry spokesman Andrej Círtek denied
that any law had been broken and said the Swedish
firms had been chosen only after several studies,
which included outside experts, had concluded that
their systems best suited the army. The dispute
follows a hotly contested competition over fighter
planes, which the US lost in 2003 when the Czechs
decided to lease Gripens, made by Sweden's Saab and
Britain's BAE Systems, instead of buying used Lockheed
Martin F-16s. At the time, the US ambassador Craig
Stapleton said the choice could impact US-Czech
relations and commented that “NATO does not fly
Gripens”. Despite the disappointment over the
country’s military purchases, the Czech Republic is
not yet in Washington’s doghouse. On 21 January, the
Czech parliament approved the extended presence of
around 100 military police officers in Iraq, where
they are training their Iraqi counterparts in the
south of the country. The decision comes at the same
time as other countries, such as Ukraine and Poland,
have either decided to withdraw or reduce their
forces. (By Jeremy Druker in Prague)

http://www.isn.ethz.ch/news/sw/details.cfm?ID=10693


                
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