Statement on the Termination of Contract Agreement
for the Acquisition of Bell CUHs from Canada
The Department of National Defense (DND) has issued a notice to Canadian Commercial Corporation (CCC) terminating the contract for the supply and delivery of sixteen (16) units of Bell 412 Combat Utility Helicopters for the Philippine Air Force.
This is in compliance with the directive of President Rodrigo Roa Duterte, and pursuant to the Government Procurement Law (RA 9184) which authorizes contract termination for the convenience of the government.
The termination was precipitated by the review ordered by the Canadian government on the implementation of the signed Contract Agreement between the DND and CCC.
While the combat utility helicopters being purchased are primarily for the purpose of transporting personnel and supplies, the Department believes that it does not owe the Canadian government any justification for an outright purchase of equipment from a privately-owned company.
The Department will continue to pursue the modernization program, and will look into procuring the combat utility helicopters from other countries in lieu of the Bell 412. DND PAS / MCAG