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Firm risks fine, may lose contract over delay in delivery of Black Hawk copters

KUALA LUMPUR: The government may impose a fine on local air service provider Aerotree Defence and Services Sdn Bhd (ADSSB) following a delay in delivering the four Sikorsky UH-60A+ Black Hawk helicopters.

Deputy Defence Minister Adly Zahari said following the delay in the delivery of the helicopters, the ministry could also cancel the procurement contract and re-tender it as outlined in the contract.

"As stated in the contract, the government may impose a late penalty for any delay in the delivery of the helicopters caused by the company," he said during the minister's question time in the Dewan Rakyat today.

He said this when replying to a question from Datuk Seri Ikmal Hisham Abdul Aziz (PN-Tanah Merah) on the failure of ADSSB to supply the UH-60A helicopters within the stipulated time.

Adly said that the company, however, had informed the ministry that the delay in the procurement of the Black Hawk helicopter lease was due to constraints in the delivery process.

This includes the prolonged war in Ukraine which has caused supply chain disruptions and the approval process by the United States regulators that has been tightened for the modernisation of technical specifications and the integration of avionics systems on the Black Hawk aircraft.

"The timeline of the work programme and the expected delivery of the aircraft to Malaysia has been revised and updated by the Slovak Training Academy and all those involved based on the latest supply chain conditions and the expected time of approval by the US regulator.

"(However), the ministry takes the delay seriously as it will have a negative impact on the helicopter operations of the Malaysian Army Aviation."

In May this year, Defence Minister Datuk Seri Khaled Nordin said the ministry would conduct a thorough review of the lease contract for the four Black Hawk helicopters before determining its next course of action. (reference: https://www.nst.com.my/news/nation/2024/05/1049613/mindef-review-black-h...)

Khaled said a decision will be made either to cancel the contract or to grant the air service provider additional time.

The armed forces have three operational squadrons, 881 Squadron, 882 Squadron and 883 Squadron, which are equipped with helicopters in the liaison (Agusta A109LOH) and light attack roles (MD530G).

The transport squadron, 882sq, retired its Sikorsky S-61A-4 Nuri transport helicopters in 2020, a move which has left it short of airlift capability.

The UH-60A+ Black Hawk was meant to succeed the S-61A-4.

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