ISLAMABAD, March 7: Pakistan Air Force would add four CASA CN235-220 light transport and surveillance aircraft to its inventory during 2002, Dawn learnt from reliable sources.

Sources said the deal for the aircraft was finalised in June 2001 at a cost of $49 million with Indonesian Aerospace (PT Dirgantara Indonesia), which makes CASA CN235-220 under license from Spain.

The officials have been given training on the aircraft in Indonesia and the delivery of the planes is expected soon, sources said.

Earlier, in May 1998, the Nawaz Sharif government had dropped the plans of buying 10 Spanish-designed CN-235 light transport aircraft for the air force from Turkey due to financial constraints.

Officials said the Indonesian deal was necessitated to offset the advantage in transport aircraft which the Indian Air Force had over the PAF.

The four CASA CN-235-220 would add to PAF’s transport fleet having C-130 aircraft (5-B and 7-B), L-100, Boeing 707s, Falcon 20s and F-27-200s, sources said.

According to the sources, in December 2000, PAF Air Transport Division Director Group-Capt Rizwan and assistant chief of air staff (operations), Air Commodore Ateeb, contacted a retired PAF official of Technoman to initiate contacts with the Indonesian Aerospace.

Technoman structured the transaction with IAe (PTPN) and presented the offer for six CN235-220 aircraft to deputy chief of air staff (operations), Air Marshal Kaleem Sadat, in the presence of Air Marshal Khudadad retired. Wing Commander Khawaja Majeed and Air Commodore Faiz, assistant chief of air staff (plans), gave PAF’s letter of intent to Technoman to work with the IAe.

Later, the number of CASA CN235-220 aircraft to be bought from Indonesia was reduced to four from six.

It is understood the initial deal with Technoman was changed when the parties involved had a dispute on sharing the modalities of the commission.

Indonesian suppliers had reportedly offered a commission of $3.9 million to Pakistani brokers for buying four CASA CN235-220 aircraft.

When contacted, the PAF officials said the commission offered by the Indonesian suppliers was not accepted. On negotiations, the price equivalent to the commission was reduced in the final deal, a PAF official said.

According to the available documentary evidence, agent of the Indonesian Aerospace (PT Dirgantara Indonesia), Suryan Padma Abdur Rahman of Prima Niaga, offered the commission for finalisation of the deal.

“They have given us a confirmation about commission fee (off the record) Agency Fee= 3 per cent; Pakistan Finance and Defence Department(s)= 5 per cent. If the third country needed, the cost will include as initial equipment and exclude from Aircraft price,” a document related to the deal said.

A legal notice served to chief of the air staff, Mushaf Ali Mir, by advocates and legal consultants, Walker Martineau Saleem, said: “It appears that our client’s honesty and high moral standards were not appreciated and the supplier was informed that the PAF would deal with the supplier through a nominee of the highest authority. Consequently, the supplier acting in flagrant violation of its obligation towards our client, appointed an agent of your choice.”

The legal notice said the arms dealer was changed on the intervention of the highest authority when it was conveyed to the DCAS (Ops) that the commission would be taken from the supplier and paid into the government treasury.

The deal, was later finalised through a Dubai-based retired PAF official, sources said.

PAF officials, when questioned about the legal notice, said Technoman was trying to blackmail the top authorities for not awarding it the contract.