Corruption in 5 777 deal, Cancellation???

[furqan_haider]

According to following news report, Govt. was to cancel 5 777 deal made in PPP govt. over (non)alleged corruption
But Boeing and USA state warns PAK govt. for negative outcomes by cancelling the deal...
http://e.dunya.com.pk/detail.php?date=2 ... 7_16152852

[Abbas Ali]

Let's wait and see what the government-controlled news sources like APP and PTV have to say about it.

Btw, on April 23 this year the current government approved acquisition of five Boeing 777s for PIA.

viewtopic.php?f=1&t=22299

Abbas

[ammad]

These 5, 777 will be back bone for PIA for years to come, very least up to 10 more years. Not sure how much the corruption is involved, but this deal shouldn't be cancel.

[Dr747]

Firstly the deal should not be cancelled. Secondly IF kickbacks were involved then the Pak Govt should take the case to US and EU courts (EU is an option as Boeing has business in EU as well and EU courts in particular take a grim look of kickbacks). By going through a through proper channels they will be able to recover their money plus compensation.

[Abbas Ali]

In late 1970s PIA filed a case in a US court against McDonnell Douglas for secret payments made by the aircraft manufacturer to third party individuals involved in the sale of four brand new McDonnell Douglas DC-10-30 aircraft to the airline in 1970s. Secret payments were 500,000 US dollars for each DC-10 sold to PIA.

PIA won the case in 1980s and was awarded 2.1 million US dollars in damages.

Abbas

[AN]

and where would the billions of dollars needed to pay for these aircraft come from?

[Abbas Ali]

In case of brand new aircraft acquired by PIA directly from US aircraft manufacturers usually it's the combination of deal financing by Export-Import Bank of the United States (Ex-Im Bank) with Pakistan Government guarantees. I think Pakistani banks also take part in the process by providing loans to PIA for repayments to Ex-Im Bank.

Abbas