Saturday, December 23, 2006

Why SA’s Rooivalk dreams just will not fly

IF DENEL clinches the Rooivalk deal with Turkey, it will be a miracle — and I do not believe in miracles. A decision of the French lower house of parliament on October 12, and the Turkish government’s reaction to this decision, have virtually ruled out any possibility of Denel selling the Rooivalk attack helicopter to the Turkish air force. Yet last month, Denel’s CEO was still putting a positive spin on the deal. So what does the decision of the French parliament have to do with the prospect of selling the Rooivalk to Turkey? On October 12, the lower house of the French parliament passed a bill making it a crime to deny the Armenian genocide. The bill is unlikely to become law as the French senate is not contemplating proceeding with the bill.

Nevertheless, the controversial decision of the French MPs was sufficient to raise the ire of the Turkish government, which severed military ties with France. The severing of military ties means that Turkey will no longer purchase French weaponry. The Rooivalk relies on French engines, and it is highly unlikely the Turks will be prepared to buy a French arms component that comes via SA in the form of a completed weapon system.

Denel and AgustaWestland of Italy have been the two short-listed companies bidding for the tender to manufacture 30 attack helicopters for the Turkish air force.

Notwithstanding the draft bill of the French parliament, AgustaWestland has the clear advantage over Denel not only for technical reasons, but for political reasons as well.

One reason that AgustaWestland’s A129 Mangusta is a stronger contender than the Rooivalk is that it carries the US-made Hellfire missile, which Denel was unable to use for its attack helicopter because of an apartheid-era spy scandal.

But it is more likely that political considerations will determine the outcome of the competition between the two bidders.

Turkey has been seeking European Union (EU) membership for many years and Italy has expressed itself as a strong supporter of Turkey’s right to join the EU. Furthermore, signing the Mangusta deal with an Italian company will be a continuation of long-established arms industry co-operation. SA has yet to initiate any meaningful co-operation in this field.

It is clear that Denel has already lost the helicopter race. It is time both Denel and the South African government disabuse themselves of the illusion that they can successfully market and sell their so-called state-of-the art war machine.

Public Enterprises Minister Alec Erwin needs to face Denel’s Rooivalk failure, which has cost the South African taxpayers billions of rand.

When, not if, Turkey formally rejects SA’s tender, Turkey will join a long list of countries that were touted by Denel as potential customers of the Rooivalk. Some of these are: Spain, Sweden, South Korea, Greece, Malaysia, Australia and China. Despite the massive vote of no confidence in the Rooivalk, both Denel and Erwin continue to pin their hopes on the Rooivalk coming to the rescue of the bankrupt parastatal arms industry. There is just one solution to Denel and Erwin’s profligacy and daydreaming: scrap the Rooivalk, which has become SA’s albatross.
Read more

0 Comments:

Post a Comment

<< Home