by Nirmala Kannangara
C 130K transport aircraft
Controversy surrounds Sri Lanka Air Force’s (SLAF) plan to purchase two C130K transport aircraft from Marshall Aerospace United Kingdom when the same company allegedly failed to deliver a transport aircraft to SLAF in the late 1990s although the then Ministry of Defence paid several millions of sterling pounds for it.
Three weeks ago President Maithripala Sirisena who is also Defence Minister, submitted a cabinet paper and received cabinet approval to proceed with the SLAF proposal. However an SLAF inside circle believes that higher officials at SLAF kept the Defence Minister in the dark by not informing him of how Marshall Aerospace swindled the Ministry of Defence in the late 1990s.
It is also learnt that Defence Secretary Karunasena Hettiarachchi who is well aware of this matter had vehemently refused to sign the contract with Marshall Aerospace to purchase the two C 130K aircraft claiming that he cannot be accountable for any scam.
It was the former Defence Secretary Chandrananda de Silva who had approved the purchase of three C130 transport aircraft in 1998 for a sum of 11 million sterling pounds but Sri Lanka received only two aircraft and what happened to the third aircraft still remains a mystery. Despite the bad track record of Marshall Aerospace, it is baffling how SLAF is once again planning to purchase two C 130K aircraft for a cost of US$ 35 million which had been sold to Marshall Aerospace by the Royal Air Force (RAF) UK for scrap metal.
According to an expert at SLAF, the questionable C 130K aircraft, manufactured by Lockheed Martin USA 50 years ago in 1966 are being phased out all over the world although the SLAF wants to purchase these aircraft. According to the sources, the RAF had sold each of these aircraft for US$ 2.5 million for its metal weight. However after refurbishment these aircraft are to be sold to Sri Lanka for US$ 17.5 million per aircraft.
“These two aircraft manufactured in 1966 will cost the SLAF a staggering US $ 35 million when they could be purchased for US$ 5 million direct from the Royal Air Force, UK and refurbished by a recognised refurbishing company by spending another US $ 6 to 7 million maximum for both aircraft,” sources told The Sunday Leader on condition of anonymity.
The Sunday Leader in its February 24, 2002 edition exposed this deal in an article titled ‘Where did the third C130 go?’ by Frederica Jansz which showed how the then Defence Secretary Chandrananda de Silva approved the purchase of three C130 transport aircraft in 1998 at a cost of 11 million sterling pounds but only two had arrived. The article further stated, ‘Sri Lanka’s Ministry of Defence (MoD) after sealing this deal also purchased from Marshall Hangers certain ground equipment without any tenders being called.’
The article continued, ‘Taking a personal interest in the purchase, De Silva pushed the deal through. He agreed to pay a total of 11 million sterling pounds for the three aircraft and ordered that 80% of the cash be sent by telegraphic transfer immediately after the contract was signed in late 1998. Curiously, the planes were not collected after the monies had been paid for a well-nigh a year. As a result some 1500 hours of flying time left on each aircraft was lost to the SLAF.
SLAF delegation visits UK
‘At the time of inspection in November 1997, the RAF had agreed to grant an extension of 1500 hours of flying time on each aircraft. However, since the deal was concluded only in late 1998, and the planes not collected for a further one year, all three aircraft by this time required a ‘D’ check which is a comprehensive check of the mechanical and other capabilities of the machine. The RAF had informed the MoD that 700,000 sterling pounds required to carry out the ‘D’ check on each plane. The local MoD did not have additional funds. A ‘D’ check was subsequently carried out on two of the planes which were brought to Sri Lanka.
‘What happened to the third aircraft and over two million sterling pounds remain a mystery. Former Commander of the SLAF Oliver Ranasinghe said that as of now there are only two C130s in the country despite a contract having being signed for three planes. The question that begs answer is what happened to the third C130 that was paid for together with the other two aircraft.’
It is learnt that the two aircraft that arrived are not in good condition as one aircraft had a cracked exhaust pipe and had to remain grounded for a period of six months.
In a letter dated October 20, 2015 from Director Business Development and Strategy, Marshall Aerospace, Charles A. Hughes to Defence Secretary, Karunasena Hettiarachchi has stated that these two aircraft are of the same configuration as those supplied to SLAF before but with a longer fuselage and will be refurbished with modernised avionics. The letter states further, ‘If the Government of Sri Lanka desires we are able to offer the upgrade of avionics and to carry out due maintenance checks on existing C130K aircraft of SLAF at an affordable price in order to bring these aircrafts to same configuration as of the newly offered aircrafts. We appreciate very much if your honoured self could avail an appointment for a delegation of Marshall Aerospace and British High Commission Officials to meet you in Sri Lanka in order to present our outline proposal’.
Hence on the request, Marshall Aerospace delegation comprising Simon Charles Glynne arrived in Sri Lanka on December 1, 2015 on UL 504. “This delegation stayed at Cinnamon Grand Hotel and met the Defence Secretary and Commander SLAF Gagan Bulathsinghala on December 2, 2015, and had invited the Defence Secretary and specialist officers from SLAF to visit South Wales for an inspection of the aircrafts and a visit to Marshall Facilities at Cambridge to discuss the SLAF requirements.
“In a letter dated December 2, 2015, Charles A. Hughes had invited Defence Secretary and a delegation to Wales to inspect the C130K aircraft to which Defence Secretary Karunasena Hettiarachchi had nominated Air Marshall Gagan Bulathsinghala (Passport No: D 3644429), Air Vice Marshall L. H. A. Silva (Passport No: OL 3638384), Wing Commander J. M. D. R. A. P. Jayamaha (Passport No: OL 3639738) and Wing Commander P. N. Fernando (Passport No: N 1731066). Marshall Aerospace had agreed to work closely with the Ministry of Defence UK to arrange internal transportation and security clearances for the visit. Hence the visit was made from January 17 to 23, 2016,” sources claimed. According to the sources, although the SLAF is now trying to mislead the masses to say that this is a government to government purchase, and there are no commissions or wheeler dealings involved, the controversy of this purchase never seems to die.
“It continues to cast a slur on the SLAF. A certain Air Vice Marshal who was a Wing Commander during the 1990s visited Marshall Aerospace for technical inspection of the three C130 aircraft. Having knowledge of how Marshall swindled the SLAF he still recommended these C130K aircraft to the Air Force Commander.
Although the Air Force is now trying to say that there is no deal involved in this purchase as this is a government to government contract, the actual contract will be between Marshall Aerospace and the SLAF. According to the proposed deal, US $ 8 million has to be paid as an advance payment and the second payment of yet another US $ 8 million has to be paid after transferring the aircraft from the RAF to Marshall Aerospace and the final payment of US $ 19 million after SLAF accepts the aircraft from Marshall Aerospace,” sources added. According to the sources, even at a time when the US has lifted the defence embargo on Sri Lanka, it is questionable as to why the SLAF does not want to purchase the newest ‘J’ model from the US Government.
US lifts embargo
“Last month the US lifted the defence embargo posed on Sri Lanka and the US Ambassador invited the Defence Secretary and the Commanders of the tri-forces for a discussion. Since there are no more restrictions on us related to defence, why cannot the SLAF purchase these latest ‘J’ model aircraft from the US government? Even if they purchase these aircraft from RAF for the metal weight and give them to an aircraft refurbishment company in Singapore, Malaysia, Portugal or any other better country and get them refurbished which will not cost more than US $ 3 to 4 million per aircraft with a warranty, the country could save more than US $ 23 million in foreign exchange,” sources said.
However refuting allegations, SLAF Spokesperson, Group Captain Samantha Alwis said the proposed purchase of C130K aircrafts will be carried out transparently with the blessings of the Ministry of Defence.
“This is a government to government deal and there is no fraud involved in this as claimed by certain vested interest parties. We are not making any purchase from the Marshall Aerospace but from the Defence Ministry of UK. We have followed the government procurement guidelines and have forwarded our request to the Defence Ministry seeking a cabinet approval. Once the negotiations are done, SLAF Commander will sign the contract on behalf of the buyer and the Defence Ministry UK as the seller,” the Spokesman said.
When asked as to why SLAF could not go for a much latest model than that of a 50 year old ‘K’ model, the Spokesman said that SLAF would have like to obtain a latest model rather than an old model if the necessary funds are available.
“Why not we would like to go for the best but the issue is lack of money. Marshall Aerospace is only carrying out the services and if required modifications for the Royal Air Force as they have the license and the capability to servicing and modifications. It is the Marshall Aerospace that maintains the RAF fleet of aircrafts. You have been misled by your sources that the SLAF will be purchasing the aircrafts from Marshall Aerospace,” he added.
Asked as to what happened to the third C 130 aircraft that Sri Lanka paid for in 1998 but never returned, Group Captain Alwis said that Sri Lanka although wanted to purchase three C130 aircrafts in late 1990s paid only for two aircrafts due to lack of funds.
“At the time of the negotiations the then Defence Ministry in late 1990s wanted to purchase three aircrafts to a price both Sri Lankan and UK Defence Ministries agreed. However from this end there was a delay in going through the process. By this time the aircrafts had to undergo major services as stipulated by the UK Defence Ministry regulations which cost was so high that the SLAF did not have the funds to absorb the service charges. As a result we deiced to purchase only two aircrafts instead of three. Since the initial plan was to purchase three aircrafts and as only two were delivered, there was a rumour that Marshall Aerospace had swindled the SLAF which is incorrect,” the SLAF Spokesperson added.