Main headlines from this issue

DAPA re-defines its offset criteria, encourages “novelty value” projects

South Korea’s Defence Acquisition Program Administration (DAPA) has redefined its process of determining offset requirements for each of its programs. The organisation has also added logistics and MRO activities to its ‘A’ list. The guidelines, published with an English translation, have grown from a mere 402 pages to 406.

MALAYSIAN offsets - Prime Minister has a senior moment

The Malaysian Prime Minister, Dr Mahathir Mohamad, 94, found himself in hot water over a remark suggesting alleged bribes paid by Airbus to two Malaysian airlines were in fact legitimate offsets. Less than 24 hours later, he backtracked. His office released a righteous storm of protest insisting that Mahathir did not at any point suggest that. For unrelated but unexplained reasons he then resigned abruptly as prime minister.

Germany lays framework for using Article 346 TFEU

The German government has published a new strategy paper that defines key defence technologies. The paper also lays the groundwork for the use of Article 346 TFEU to allow locally restricted procurement tenders. The new paper is designed to safeguard essential national security interests. The move was forecast in CTO 3 after domestic industry criticised the decision to use a Dutch shipyard.

Naval Group executive faces Australian anger as local content target fades

Naval Group Australia’s CEO, John Davis, has won a rebuke from the Australian Department of Defence (DoD). In an interview published in The Australian Davis stated that local content on the AUD80bn ($59.5bn) Attack-class submarine project may not reach 50 percent. The French company is encountering difficulties with local suppliers and says the capability of these defence suppliers is falling short of expectations.

Australia warns UK that building frigates is for its national industry

Tony Dalton, the head of National Naval Shipbuilding in the Australian Department of Defence (DoD), has warned the UK government that it must maximise Australian industry involvement in the Hunter Class frigate program. Dalton reminded the UK government it must honour its commitment to include Australian companies in the program and that it was not to be used simply to prop up British shipbuilders.