Friday, September 04, 2009

DTN News: Slovenia Renegotiating Patria Armored Vehicle Deal

DTN News: Slovenia Renegotiating Patria Armored Vehicle Deal
*Source: DTN News / Int'l Media
(NSI News Source Info) HELSINKI, Finland - September 4, 2009: Finnish defense company Patria said Sept. 2 it was in talks with the Slovenian government to renegotiate a contract for armored vehicles after the deal became hampered by delays and alleged bribery. Ljubljana signed an agreement with Patria in 2006 for 135 armored vehicles worth $395 million (278 million euros) - the biggest military contract signed by Slovenia. But now Slovenia wants to slash that order by almost half. The Slovenian government "would like to reduce the number to around 80," Seppo Seppaelae, head of Patria's land and armament unit, told AFP. Seppaelae said he expected an agreement to be struck, adding that 13 vehicles had been delivered to Slovenia. In April, Ljubljana was reported to be considering canceling the contract with Patria due to delivery delays. The Slovenian government threatened to cancel the contract in 2008 after it emerged Finnish police were investigating bribery allegations related to the deal. Kaj-Erik Bjoerkqvist, a senior detective in charge of the investigation, told AFP on Sept. 2 that he hoped police inquiries would be completed by the end of the year. The Finnish state owns 73 percent of Patria, while EADS has a 27 percent stake.

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