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Defense lobbying affair in Germany

Bernd Siebert, a lawmaker and one of Haun's longtime contacts in the ensuing months, raised repeated questions about the Eagle IV, lobbying for the bigger and heavier Dingo instead -- an armored vehicle made by KMW.

Brazil eyes 2010 jet decision
Brasilia (AFP) Dec 9, 2009 - Brazil's defense minister on Wednesday said his government would in early 2010 choose the winner of a mutli-billion-dollar contract to build 36 jet fighters. "The air force has not yet delivered its report, that should come next week" minister Nelson Jobim was quoted by the Folha de Sao Paulo as saying. "I think (the announcement) will come at the beginning of next year." The contract has prompted fierce competition from French, US, Russian and Swedish firms, as well as exposing rifts between Brazil's political and military elites. President Luiz Inacio Lula da Silva and French President Nicolas Sarkozy announced jointly in September that Brazil was negotiating to buy 36 Rafale fighter aircraft from France's Dassault company. The deal was estimated to be worth between four and seven billion dollars. But pressure from Brazil's air force -- which was still evaluating the Rafale against rival aircraft the F/A-18 Super Hornet by US group Boeing and the NG Gripen by Sweden's Saab -- forced Lula to delay a definitive announcement. The Brazilian air force evaluation was due to be handed to the government at the end of November.
by Staff Writers
Berlin (UPI) Dec 9, 2009
A media report accuses German lawmakers of acting in the interest of defense industry lobbying groups by delaying purchase decisions for military equipment for German troops in Afghanistan.

German news magazine Der Spiegel writes that German defense industry giant Krauss-Maffei Wegmann has succeeded in influencing German lawmakers on defense equipment purchases.

The article, published in Der Spiegel's latest edition from Monday, says Frank Haun, a senior manager of KMW with an office in Berlin, has convinced a lawmaker of German Chancellor Angela Merkel's conservatives to delay a Defense Ministry decision to purchase armored vehicles for the Afghanistan mission until the Munich-based company could send its own product into the bidding. The magazine says its story is based on letters, confidential memos and parliamentary documents it has obtained.

Around two years ago, Berlin decided to purchase 600 armored vehicles to better safeguard its troops in Afghanistan, who were increasingly targeted by roadside bombings. The contract is worth at least $400 million, Der Spiegel writes.

The Defense Ministry chose the Eagle IV, produced by Switzerland-based Mowag, a daughter company of General Dynamics.

Bernd Siebert, a lawmaker and one of Haun's longtime contacts in the ensuing months, raised repeated questions about the Eagle IV, lobbying for the bigger and heavier Dingo instead -- an armored vehicle made by KMW.

Berlin refused to change its purchasing decision but together with another lawmaker, Social Democrat defense expert Johannes Kahrs, Siebert delayed the parliamentary process so greatly that a decision to purchase 200 Eagle IV wasn't green-lighted until October 2008. The contract for the additional 400 vehicles is up for bidding in 2010 -- just in time for KMW to join.

The company has since developed its own armored vehicle. The so-called AMPV should be ready by early next year and could make the cut after all.

Mowag is based in Kreuzlingen, Switzerland. More than 10,000 of its armored vehicles are in operation worldwide. General Dynamics purchased Mowag, which has around 500 employees, in 2003.

Munich-based KMW Krauss-Maffei produces railroad locomotives, tanks, self-propelled artillery and armored vehicles. The company's most famous product is the Leopard tank, which has been sold to armed forces all over the world.

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