Posted on 03/04/2012 7:01:13 PM PST by U-238
Legislator Tubagus Hasanuddin raised questions on Friday about a recent Defense Ministry purchase of six Russian fighter jets, claiming the deal might have been unduly marked up by $50 million.
Tubagus, deputy chairman of House of Representatives Commission I overseeing defense and foreign affairs, pointed out the high price of the planes compared to previous purchases of the same aircraft.
Planes already acquired by Indonesia, he said, only cost $55 million each. Indonesia bought six of the Sukhoi jets from Russia in 2007 for $355 million.
There was also a discrepancy with the published list price, he added. The latest price tag published by Russia’s state-run JSC Rosoboronexport, the only company authorized to export Russian defense technology, was $70 million, Tubagus said.
But the incoming batch of six Su-30s, which were approved at the end of 2010 and finalized in December 2011, cost $470 million, or $78 million each
(Excerpt) Read more at thejakartaglobe.com ...
Russia has a history of doing this. I have a theory however that this ‘mistake’ can easily be traced to under-table deals between the Russian chaps and the local authorities (i.e. say I am selling you something worth 10 credits, but we decide to make the price 12 credits, with you keeping the 2 credits as an incentive to buy from me).
Oh, and read ‘incentive’ as bribe.
LOL.
It is really amazing what happens in some countries. And if you think defense deals are an issue you should see the big infrastructure deals. Amazing ‘gray areas’ that are so clouded and nebulous even Superman’s x-ray vision couldn’t penetrate that fog. Sometimes at such a level that it seems like pure fiction.
I have no arguements on that.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.