Main headlines from this issue

India calls in the penalties

India’s Department of Defence Production has issued default warnings concerning two offset contracts. The MoD is claiming penalties of $2.5m for shortfalls in meeting the obligations. The department has initiated action concerning a further eight contracts where interim shortfalls of $23m have been reported by contractors..….A “high level collegiate committee” will report to the Offset Directorate.....

Norway cleared for revised offset regulations

Norway, together with Iceland, will transpose defence directive 2009/81 EC into national legislation by December 14, 2013. They will be the last European countries to comply. Norway’s tiff with Liechtenstein is over.

Japan to manufacture components worth ten percent of F-35A’s value

The Japanese companies Mitsubishi Electric and IHI will manufacture 24 components of the F-35A. The agreement will enable the companies to acquire technologies necessary for an indigenous Japanese fighter to be assembled in the future.

Scotland would lose out on UK defence contracts awarded under Article 346

The minutes of oral evidence taken at a recent House of Commons Defence Committee hearing on the defence implications of possible Scottish independence raised surprising issues concerning the application of Article 346 of the defence directive.

Unusual Zimbabwe barter deal paves way for infrastructure development

A major South African construction company has been given 134 hectares of land as part-payment under a barter deal involving the construction of a direct link between Zimbabwe’s city centre and Harare International Airport. The land will be used for a mall.