National auditor whacks Defence on C-27J

Procurement inconsistencies questioned

Both Minister for Defence Materiel Dr Mike Kelly and Opposition spokesperson for Defence Senator David Johnston have claimed vindication from the Australian National Audit Office’s (ANAO) audit of the combined-pass procurement of 10 C-27J Spartan aircraft and associated equipment via Foreign Military Sales (FMS).

The C-27J selection was announced in May 2012 following the release of the federal budget as the long-awaited replacement for the DHC-4 Caribou under project AIR 8000 Phase 2 Battlefield Airlifter. The $1.403 billion acquisition was referred to the Auditor-General by Senator Johnston in May 2012 after concerns on Defence’s procurement processes were raised at a Senate Estimates hearing and following outcry from competitor Airbus after their C-295 was overlooked.