DND studying options to recover P1.9 B downpayment for scrapped Russia chopper deal
MANILA, Philippines — The Department of National Defense (DND) is looking at possible legal options to recover almost P2 billion advance payment from Russia following the termination of the P12.7-billion helicopter purchase deal between the two countries, according to Defense Secretary Gilberto Teodoro Jr.
“We’re studying our legal options,” Teodoro said during a press conference at the Department of National Defense (DND) headquarters at Camp Aguinaldo in Quezon City.
“That is a purely legal question already … on the fulfillment or non-fulfillment of a contract, so we have to study the best legal option as to the way forward,” he added.
In November 2021, the Philippine government and Russia signed a contract for 17 units of Mi17 heavy-lift helicopters for the Philippine Air Force.
On June 25, 2022, however, then Defense Secretary Delfin Lorenzana — who now heads the Bases Conversion and Development Authority — terminated the chopper deal.
Lorenzana pointed out that the deal went against the United States’ Countering America’s Adversaries Through Sanctions Act, which was enacted to punish Russia.
Former DND officer-in-charge Jose Faustino Jr. admitted the “difficulty of refunding” the downpayment since the suppliers have already invested in the project.