Bankrupt Greece shells out €500 million for military aircraft

05 April 2015 / 18:04:23 GRReporter

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A few days ago, the government signed the first major weapons programme in years. The contract is with the US Lockheed, which received $45 million upfront, and the price tag of the agreement itself is $500 million.

The revelation of Proto Thema has provoked widespread discussion as the contract was signed on March 15, the decision was taken by the Government Council for Foreign Affairs and Defence and displays the signatures of Alexis Tsipras and Defence Minister Panos Kamenos.

The interstate agreement provides for the modernisation and maintenance of five out of six military planes Ρ-3Β Orion at the ripe old age of 35. The aim is to extend their life for another 15,000 flying hours. The works will take seven years, which means that when complete, the aircraft will be 42 years old!

Panos Kamenos and Alexis Tsipras, photo www.imerisia.gr

it's worth pointing out that these planes were decommissioned in 2009, when the Naval Supreme Council decided that upgrading them was not economically viable.

To put it plainly, while writhing to pay off debts, wages and pensions and plucking bare all possible reserves and funds for the purpose, the Greek government decided to pony up $45 million over a contract worth 500 million.

In 2009, an acquisition of new aircraft for the navy was planned, but the tender was cancelled. In 2010, €250 million were earmarked for the purchase of aircraft, but in 2011 the amount was shrunk to €180 million.

2014 saw a decision for the purchase of new aircraft as part of the programme for equipping the military over the period 2011-2025. In January 2015, the ministry of defence asked the ministry of finance to amend the original 2016-2017 armament programmes and thus get a bit more cash for the aircraft intended to assist naval cooperation.

But the audit office refused to endorse funds for armaments. Back then, the politician who reacted sharply and warned the Samaras government against any spending for the military was Mr Thodoris Dritsas from SYRIZA who was in charge of the party’s defence policy.

After the change of government in January 2015, the general staff of the army again raised the question, arguing that the most advantageous solution was to modernise the existing aircraft. Thus, on March 15, the Government Council for Foreign Affairs and Defence, chaired by Alexis Tsipras, decided to do exactly that.

The chief armaments directorate embarked on pushing the Ρ-3Β Orion upgrade deal as a priority. It signed the inter-state agreement with the US government and commissioned the US company, Lockheed Martin, to carry out the programme in cooperation with Hellenic Aerospace Industry and other Greek firms as subcontractors.