The Opposition is to intensify pressure on the Government today over the awarding of a €100 million helicopter deal.
The Minister for Defence, Mr Smith, defended the awarding of the Air Corps contract yesterday, saying that procedures had been adhered to in an open and fair way and that he had saved the taxpayer a few million euro when the US firm Sikorsky was granted the contract earlier this year.
The granting of the contract followed a second tendering process by the Department of Defence and after Sikorsky had dropped its price by about 27 per cent.
Confusion surrounds the nature of representations made to the Minister for Defence, Mr Smith, by the US Ambassador, Mr Richard Egan, in connection with the contract. Eurocopter, one of the three unsuccessful bidders, sought a judicial review of the decision in the High Court last week and the discovery of documents. The case returns to court on April 15th.
Fine Gael and the Labour Party are to raise the issue in the Dail today. Fine Gael's Justice spokesman, Mr Alan Shatter, said it was clear now that Sikorsky learnt of details of the tenders submitted to the Department of Defence by their competitors.
He said the Minister must give a detailed explanation of the communications that took place between him and the US Ambassador. He also inquired about the role played by the Taoiseach's former adviser, Mr Paddy Duffy, "who actively lobbied on behalf of Sikorsky".
Mr Smith said yesterday that the "highest of standards" had been observed during the tendering process. "The American Ambassador was not the only one to make representations. Sikorsky were not the only ones to give in revised bids. But I ignored them all."
Mr Smith said he had "absolutely not" been involved in any way in Sikorsky getting the contract.
He said on RTÉ radio it was "ridiculous" to suggest that the tendering process had been undermined by the US Ambassador's representations. Ambassadors all over the world were asked to help home companies abroad and to "try and make way for them".
Mr Smith said there were a number of reasons why the tendering process had been reopened.
"First and foremost, it is a highly technical job for the project team. I would not be able to get into the detail that the civil and military group had to go into".
By the time that work had been completed, he said, the tender date had expired and it was necessary to have another tendering competition.
"Obviously as everybody else was aware there was a major downturn in the aviation industry and, like in everything, if you can make some savings in a new situation that is what you should do. So I saved a few million for my Department by having the further tender."
Meanwhile in a statement yesterday, Sikorsky said they were "at no stage privy to any of our competitors' prices or any details of their tenders for the provision of helicopters for the Irish Air Corps". A revised price bid was delivered by Sikorsky personnel directly to the Department of Defence on the September 24th, 2001, it said.
"This was standard practice for Sikorsky and was done since our original bid was due to expire on September 30th, 2001. The Department of Defence rules provided that tenders had to be valid for a minimum of two months. Our original bid was valid for six months i.e. expiring on the September 30th, 2001."
The US Ambassador refused to comment on the controversy yesterday.
KEY EVENTS IN TENDERING PROCESS
March 2000: The Minister for Defence, Mr Smith, announces a £55 million equipment package for the Air Corps, including new helicopters, with the precise scope of the package to be decided.
July 2000: An announcement is made that five new medium-lift helicopters are to be bought for the Air Corps - three for search and rescue and two as troop carriers.
January 2001: Tenders for the helicopters reported to be at an advanced stage, with four firms in the running: Bond of Scotland (later renamed as CHC Scotia); EH Industries; Eurocopter, the EU consortium; and US firm Sikorsky.
August 2001: United Technologies offers a significant contract to the Irish operation of Dell, if its subsidiary, Sikorksy, gets the contract. It is also offering a major deal to FLS, the former TEAM Aer Lingus. The Department of Defence says that these offers cannot be taken into account in awarding the contract.
December 2001: Bidders asked to come up with their best offers, even though final bids are already meant to be lodged and Department export group has recommended Eurocopter. Sikorsky now says it will offer FLS £125 million in business if it wins. Northside Dublin TDs support the bid.
January 2002: Cabinet decides to offer the tender to Sikorsky. It says decision was not linked to FLS business. Eurocopter legally challenges the terms on which decision was made.
February 2002: Mr Smith tells High Court he will not sign Sikorsky deal, pending the outcome of the Eurocopter legal proceedings.