MIG deal misinformation helps LTTE
 

Misleading information can harm relief efforts and disrupt DPL relations too - Presidential Secretariat

[Friday, March 23, 2007 - 13.15 GMT]     

The Government which vehemently denies any inconsistency in the purchase of MIG 27 ground attack aircraft from Ukraine in 2006, states the misleading
information on this, through unwarranted publicity, would only help the LTTE to help assess the vital characteristics of the air assets of the Sri Lanka Air Force.

This publicity can also hinder humanitarian operations now on in the East as well as disrupt diplomatic relations between the Government and friendly
countries, states the Presidential Secretariat in a statement on the purchase of these aircraft.

At a time when the LTTE is seeking to block military assistance to Sri Lanka citing human rights violations, and is working towards isolating the government internationally, such false information on the MIG deal can harm diplomatic relations with friendly countries and the goodwill of suppliers. Excessive publicity alleging irregularities in deals involving these suppliers may also have a negative impact on their business dealings, the
Presidential Secretariat states.

The Government suspects that these charges of alleged irregularities in the MIG deal is aimed at disrupting the popular support and blessings of the general public towards government efforts of liberating the East from the brutal clutches of the LTTE.

Full text of statement:

The Government vehemently denies any inconsistency in the 2006 MIG 27 ground attack aircraft deal with Ukrinmash, Ukraine. Misleading information on the MIG 27 government -to- government deal with Ukrinmash of Ukraine may hinder the humanitarian operations in the East and also disrupt diplomatic relations between the Government and friendly states.

Fabricated and misleading information on the deal has brought the matter under unwarranted publicity which would only help the LTTE to assess the vital characteristics of the air assets of the Air Force. The MIG 27 deal being under the media spotlight will also help the LTTE to analyze the military strategy behind the purchase of MIG 27 aircraft.

In an effort to block military assistance to Sri Lanka, the LTTE, citing human rights violations, is working towards isolating the government internationally. False information on the MIG deal can harm diplomatic
relations with friendly countries and the goodwill of suppliers. Excessive publicity alleging irregularities in deals involving these suppliers may also have a negative impact on their business dealings.

Misinformation on the deal even after a clarification by the Air Force and the Government has placed the Technical Evaluation Committee in an embarrassing position. Members of the Committee may be reluctant to take independent decisions based on the requirements of the Air Force due to the inconvenience of prolonged inquiries.

The Government suspects that these charges of alleged irregularities in the MIG deal is aimed at disrupting the popular support and blessings of the general public towards government efforts of liberating the East from the brutal clutches of the LTTE.

MIG 27 ground attack craft played a key role in neutralizing LTTE artillery and mortar positions during the recent battles of Mavil Aru and Vakarai. Precise air raids by MIG 27 jets pinned down the LTTE along their forward defence lines saving the lives of hundreds of soldiers. The mere sound of Kfir and MIG 27 jets is said to boost the morale of the ground troops. Propaganda aimed at discrediting the government and breaking the support of the general public can affect the morale of the Security Forces who are engaged in humanitarian operations to liberate thousands of innocent civilians from the clutches of the LTTE in the East.

A clarification on this matter is provided here in detail.

In the year 2000 when the North- East conflict was at its peak, the Government purchased four MIG 27M fighter aircraft at a unit cost of $1,882,500 from Ukraine. According to specifications, these MIG aircraft
had only two years remaining lifetime prior to the next overhaul. In addition another three MIG 27M aircraft and one MIG 23UB trainer aircraft were purchased in October 2000 at a unit cost of $ 1,705,500.00 and
1,005,000 respectively. These too had only two years remaining lifetime prior to the next overhaul.

Since these ground attack aircraft had only two years remaining life time, the Government following an agreement with DS Alliance extended the lifetime of these aircraft for another two years by paying US $ 155, 000 per aircraft, so that they could be operated for a maximum period of four years before overhaul.

Out of the seven aircraft purchased in 2000, CF 732 was destroyed on 24rd July 2001 during the LTTE attack on the Katunayake airport. CF 736 and CF 734 crashed on 18 August 2001 and 09 the June 2004 The remaining three MIG 27M and one MIG 23UB aircraft were grounded for overhaul in July 2004.

In 2004, the SLAF called tenders for the overhaul of the above aircraft since they were needed for operations. Three sources responded. The Technical Evaluation Committee recommended to overhaul the aircraft through DS Alliance (Pvt) Ltd. a Singapore based Company, acting as an agent of Ukrinmash. DS Alliance offered to overhaul the two MIG 27M aircraft; CF 731
and CF 735 at the rate of US $ 1,133,445 and the other MIG 27M (CF 737) at US $ 983,445. DS Alliance also offered to overhaul the MIG 23UB Trainer Aircraft (CTF 730) at a cost of US $ 1,299,045. The prices quoted varied due to different work scopes.

In 2006 the Government considered another flexible offer by Ukrinmash, a subsidiary of the state company UKRSPETSEXPORT of the Government of Ukraine, to overhaul the fleet of SLAF MIG23/27 aircraft and to provide another four MIG 27M aircraft manufactured in 1980, 1981 and 1983, at an unit cost of US $ 2,577,000. Further the price offered by the Ukrinmash on a government-to-government basis is lesser than the price offered by the bidder.

Seemingly the price offered by the Ukrinmash seems higher compared to the MIGs purchased in 2000. However when the work scope of the MIG aircraft
purchased in 2000 and the work scope of the four aircraft to be purchased on a government-to-government basis are considered the 2006 deal is
economically viable as there is no need for the SLAF to overhaul the aircraft for the next eight years.

Further, unlike in the previous offer in which the SLAF purchased seven MIGs with only two years remaining life time at a cost of US $ 1,882,500, the SLAF is this time purchasing the four MIG 27 aircraft, which have been fully overhauled with 08 years lifetime at a cost of US $ 2,577,000.

To get a clearer picture, the cost of the overhaul of the MIGs should be added to the original value. One can realize that this amount is much higher than the cost of a MIG aircraft after the overhauling at the rates offered by the DS Alliance (Pvt) Ltd. In this backdrop, it is unrealistic to come to a conclusion about the prices of the MIG 27 aircraft based only on the original value without considering the condition and remaining
lifespan of the aircraft.

The SLAF has also found it fit to purchase these four MIG aircraft from UKRINMASH (a government-to-government deal) as it reduces the freight cost
since they can transport the MIG 27M aircraft and the MIG 23 UB trainer aircraft to the LVIV State Aircraft Repair Plant in Ukraine, after they hand over the four overhauled MIGs  to Sri Lanka.

The latest purchase of four MIGs is on a government-to-government basis with a lifespan of 08 years at a cost of 2,577,000 with deferred payments of only 25% to be paid on acceptance in Ukraine, 25% on acceptance in Sri Lanka, 25% end of 1st year and 25% end of 2nd year. The financier of the deal was the choice of the Ukrinmash. The Government of Sri Lanka had no control over the selection of the financier.

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Last Updated Date: March 23, 2007 - 13.15 GMT