Get out while we can - DA

2009-10-14 17:12

Cape Town - Cabinet will have to make an urgent decision on whether to go ahead with a deal to buy military transport planes from Airbus after the bill for the deal was increased by R30bn, the SABC reported on Wednesday.

Armscor chief executive Sipho Thomo told a Parliamentary hearing Airbus had said that long delays in the building programme had pushed the asking price for the A400M planes from R17bn to R47bn.

Armscor said Cabinet would now have to decide urgently whether to cancel the deal or accept Airbus' new terms.

David Maynier, the DA's spokesperson on defence, said: "We have already spent R2.9bn on the Airbus A400M. We have to get out while we can."

He called on Defence Minister Lindiwe Sisulu to withhold a R1.1bn pending payment to Airbus, to begin negotiations to terminate the procurement of the aircraft; and then to launch a full and independent enquiry into the deal.

- SAPA