Romanian Govt. may cancel EUR 1 bln auction for multirole corvettes

Romania’s Government considers scrapping the auction for four multirole corvettes, estimated at over EUR 1 billion, after the deal faced multiple deadlocks but seemed recently to approach conclusion with Naval Group of France as the most likely contractor.

The Procurement Council (CODA) within the Defense Ministry is summoned for April 22 to revise downward the budget for the project, because the budget was not properly endorsed with all the procedures met, sources within the ministry told Newsweek. The selection procedure for the corvette manufacturer was based on a budget of EUR 1.3 billion, not including VAT, but the Procurement Council would reduce it to EUR 1 billion not including VAT, arguing that the EUR 1.3 billion was decided without the approval of the Defense Ministry.

Romania’s Defense Ministry seemed to approach the completion of the tender in February after the consortium formed by Constanta Shipyards and France’s Naval Group dropped their objections to the process. Defense minister Gabriel Les stated that the procedures would be completed once the court rules on the objections raised by Constanta Shipyards.

Romania’s Government suspended the corvette purchase earlier this year after a senior Defense Ministry official said he had spotted irregularities in the process. The procurement department also notified military prosecutors about reasonable suspicions regarding the legality of the procedures.