Sunday, September 28, 2008

Projects group 'should split from Defence'

>> We're not the only ones. Even the top 10 'cleanest' government fumbles here and there.

THE Defence Material Organisation, which manages defence projects worth $100 billion, should be separated from the Defence Department under a series of major reforms, a review has recommended.

If the Rudd Government accepts the key recommendations of the review chaired by businessman David Mortimer, the DMO would become an executive agency responsible to the Defence Minister rather than the Defence Department.

The case for the DMO to become an executive agency was first made by the 2003 Kinnaid review of defence procurement but was rejected by the Howard government.

Military Blunders (Programs that are cancelled, over budget or delayed)

Kaman Seasprite helicopters (Qty 11, Status: Cancelled in Apr, Cost to Taxpayers: $1.1B)

Navy's New Torpedoes (Cost $300M, Status: 3 yrs late)

RAAF Wedgetail airborne early warning and control aircraft (Qty 6, Status: 38 months late, $3.8B)

FFG Frigate upgrade (Qty 4, Cost $1.5B, Status: 4-1/2 yrs behind)

Land 121 - army's frontline trucks and trailers (Qty 2400, Status: 12 months late, $1.6B)

Army's ARH armed reconnaissance helos (Qty 22, $2B, Status: 2 yrs late)

1 comment:

bats said...

And that's without the JSF fiasco. there was a write up the other day about how the aircrafts are gonna be delayed and shite. americans are to blame for that one they reckon. but really, the person spending the aussie taxpayer's money should cop the blame. what the hell to the americans care about this delay?

I don't know what benefit splitting will have. As a matter of fact, it'll probably create more room for abuse. Khazanah for example has worked micracles for us hasn't it?

so all these delays have cost aussie taxpayers all kinds of dough. the public seems to be oblivious to the happenings in defence... lack of media coverage? time to ramp up the pressure.

in the meantime, Temasek's moves seem to be confusing the hell out of our Maybank's economists. good times.