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Germany's "Kremer affair" and its connection to the delayed installation of acoustic monitoring devices for the RCN's sub program:
From the Defense Industry Daily site:
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From the Defense Industry Daily site:
2012 – 2013
Torpedo firing. Windsor breakdown. VISSC.
Sept 8/13: Spy story. In 2008, Canada signed a C$ 1.3 million deal with the German firm Applied Radar and Sonar Technologies GmbH to install acoustic monitoring devices, as part of an underwater training range. Delivery was supposed to take place in 2009. Fast forward to a a December 2012 briefing note prepared for senior DND staff, which says the company has disappeared, the contract is terminated, and they’re going to try and use international collection agencies to collect about C$ 1 million.
Just one problem. The Ottawa Citizen tracked the firm to Izmir, Turkey. Its CEO says that not only has the equipment been ready for a while, but DND officials have visited him in Turkey at least 4 times over the years. The hangup is transportation costs, and the core of the 2012 allegations involve sloppy research by the Ministry of Public Works and Government Services, which is disconnected from DND’s efforts.
As to why they’re in Turkey, and why the shipping charges are a problem, the “Kremer Affair” is an interesting story. In 2005, Germany’s BND intelligence service asked the firm to pass along information acquired from arms deals with foreign customers. Applied Radar and Sonar Technologies declined, and shortly thereafter, German police seized their computers and company equipment. German courts cleared the firm of wrongdoing under the charges, and said that compensation was in order for the grave damage to the firm’s finances and operations, but none has been paid. The firm had relocated to Turkey to avoid further harassment, and the entire affair left them without the funds to ship Canada’s equipment per the contract. DND was contacted about this in 2009, and refused to pay anything more. A more rational model might have looked at the small shipping sum involved, the firm’s proven ethics, and the cost of not having the range at full readiness, and paid it. Instead, here we are. Sources: Ottawa Citizen external link, “Missing $1M DND equipment order not missing all along, contractor says” |
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