South Africa helicopter firm wants ministry to buy Sh409m chopper

South Africa’s Airbus Helicopters Southern Africa (AHSA) Limited wants the Mining ministry compelled to buy a Sh409 million helicopter.

AHSA has sued the Mining ministry for failing to furnish it with a formal contract to supply and commission the €3.5 million (Sh409 million) aircraft, more than 11 months after the South African firm was announced winner of tender proceedings for the multi-million shilling deal.

The Ministry of Mining on December 3 last year wrote to AHSA, informing it that it had emerged top at the tender evaluation proceedings and advised that the South African firm would be called to sign a formal contract for the deal 14 days later.

The Ministry of Mining is yet to file a response in court, but Monday it told Justice George Odunga that it would do so within 14 days.

“The respondent has failed or neglected to forward the contract documents for signature by AHSA, in accordance with the undertaking given in the notification of award dated December 3, 2015. The respondent was required to forward the said contract documents within 14 days of its letter, but so far this is yet to be done,” said AHSA managing director Arnaud Chastellier.

The helicopter manufacturer says the tender documents stated that the notification of the award of the deal constituted as contract formation, hence it went ahead to start manufacturing the helicopter.

AHSA adds that it has held meetings with ministry officials who promised to ensure that it is furnished with a contract, something that is yet to happen. The firm says it most recently wrote to the Mining ministry on August 12 through its lawyers, but is yet to receive a response.

“Furthermore, representatives from the respective parties have held meetings during which the ministry assured AHSA that the contract would be formalised. One such meeting was held between Eldrid De Villiers on behalf of AHSA and Julius Obebo who serves as the ministry’s head of procurement on December 17, 2015,” the South African firm says.

AHSA holds that the failure to formalize the multi-million shilling deal has exposed it to financial losses, and wants Justice Odunga to compel the ministry to sign a contract with the South African firm.

“AHSA did accept the tender award by way of a letter dated December 10, 2015 following which AHSA began manufacturing the helicopter in accordance with the tender. AHSA submitted a performance guarantee signed on January 6, 2016 thereby performing its obligations under the tender.”

“In its letter dated June 1, 2016, AHSA expressed its frustration with the respondent’s delay in formalizing the contract and sought to have the entire process expedited. The respondent has, however, failed to respond to the letter,” Mr Chastellier added.