A mega commission deal behind the Good Governance JF-17 combat jets

Dec 01, 2015

Arms business is the world’s number one profitable venture. There are no saints in this business and we should not expect saints either. However it is the duty of the government to be transparent in a minimal way in its transactions. In order to do that the head of the state should be strong.

Despite Sri Lanka air force colonize with MiG and Kfir during the war with the LTTE now those aircrafts has become defective and going to be expired. However procuring a combat aircrafts during a war free situation would raise significant attention. However the SL Air Force has decided to purchase few aircrafts. Despite the air force going to propose its official guidelines a Chinese Company named China National Aero Technology Import & Export (CATIC) is being selected as the middle man for this transaction. This company has invested in manufacturing these combat aircrafts. Also this company is famous for manufacturing air craft spare parts.

The local agent for this CATIC is the owner of Access Group of Companies Sumal Perera. Sumal Perera who was on the elite list of businessmen’s of the Rajapaksa regime, still flourish the same in the current Good Governance.

However discussions were held with CATIC about purchasing these MiG aircrafts. Air Force officers first time saw this air craft in an exhibition held in Paris.

This Chinese CATIC Company is a stakeholder for the infamous Galle Face land deal. When the army headquarters in the Galle Face was sold outright, CATIC bought 10 acres of this land. The other company connected to this is Shangrila. CATIC company first time entered to build a hotel from the land it bought from Sri Lanka for a nominal price.

However discussions are taking place to buy eight light attack combat aircrafts named JF-17 Thunder Fighter Jet alias Fierce Dragon manufactured for Pakistan by Pakistan Aeronautical Complex & Chengdu Aircraft Industry Corporation (PAC & CAC)

 A Chinese website first published this news in early June this year and later this was published in the Pakistan Defense Ministry website. Therefore in order to close this deal the air force commander Gagan Bulathsinhala travelled to Pakistan this November. Foreign websites revealed that the air force commander has visited Pakistan last June. Media reports citing Pakistan Air Force news stated that these air craft’s are planned to bring down in early 2017. However our air force spokesperson said in June that there will not be such a transaction taking place.

Meantime it is stated that Sri Lanka would be the first buyer of these combat aircrafts. However foreign websites states that Burma too has signed to purchase these combat jets. Although foreign websites states that Sri Lanka would purchase 18 to 24 aircrafts the Sri Lanka air force would purchase only eight.

According to combat attack aircraft specialists this JF-17 thunder from Pakistan and FC-1 Xiaolong or Fierce Dragon made by the Chinese are light jet attackers which are less in cost, highly confident, high efficient and multipurpose attackers which is capable of carrying out operations during both day and night. These aircrafts are considered the fourth generation in attacker jets. In 1999 China and Pakistan jointly came to an agreement and in 2003 the first airlifting took place. In 2007 these JF-17 aircrafts were attached to the Pakistan air force and up to now 50 such aircrafts are deployed in the Pakistan Air Force.

This aircraft is able to carry 3.5 Metric tons explosives and missiles. This JF-17 engine has been manufactured based on the infamous Russian manufactured MiG 29. However Pakistan has shown special interest for this deal. They would be pleased to seek advice from war experts like Sri Lanka and attach these aircrafts to their air force which would promote their business.

However since this transaction is planned to do with a Chinese company the total benefit of this deal cannot be acquired by our country.

According to the prices given by the Chinese company an aircraft cost 45 million US dollars with a one year warranty and a service period of one year. There is no guarantee to provide free spare parts or how much spare parts would cost. The version of this aircraft would last for the next seven years.

The company which manufactures this aircraft has said that this aircraft is estimated to fly 4000 hours that means 25 years of life time. However if Sri Lanka directly approach the Pakistan company which manufactures these aircraft each aircraft could be bought for US dollars 30 with a three year warranty cum service and a seven year free spare parts guarantee. The promotion they offer is more advantage is that they provide one aircraft free if we purchase eight of them. Meantime free training would also be given from them.

There are two versions for this jet aircraft which was developed from 2006. According to their company websites the first production cost 16 million USD in 2013 and the second production has cost 35million US dollars. They are supposed to release another version next year. Reports reaching us confirm that Sri Lanka planning to buy the first version of these aircrafts.

However if this deal happens Sri Lanka would incur a large loss. This is not a transaction happening without awareness. High ranking air force officials and high political echelons are aware of the benefit of this transaction if this would befall through this Pakistan Company. Yet if this transaction happens through the Chinese Company there would be lumps of commissions dropped everywhere.

There is no other problem with regard to this purchase of this combat aircrafts and it is a good choice. The infamous MiG deal happened during the former Rajapaksa regime had large commissions but finally bought four used aircrafts.

Meantime a diplomatic crisis has erupted due to this problem. The Indian government has become hostile to this transaction. Prime Minister Modi who came to Sri Lanka few months before has proposed Sri Lanka to buy the recently manufactured Tejas Light Combat Aircraft (LCA) by India.

JF-17 and LCA are the two light combat aircrafts available in the market today. However it is the responsibility of the people who appear for the Good Governance to prevent this aircraft deal alleged with a large a commission.