KIO: VIP plane contract breaks the law

Boeing 737 MaxImage : Boeing

Poland’s National Appeal Chamber (KIO), a first instance body responsible for review of appeals concerning public contracts, said that the deal between Ministry of Defence and Boeing for delivery of three B737 planes which will transport top Polish officials was signed against the law. But it will go through, KIO said. Ministry said that the procedure was in accordance with Polish law and will appeal the decision.

The timeline of the process is very complicated, yet crucial. The funds earmarked for buying the VIP planes were from the 2016 budget and would expire last Friday to be returned to the state coffers. On Thursday, KIO lifted the ban it placed on the transaction, which was put there, as three companies appealed the decision for not being allowed to submit their offers in a tender.

The KIO examination was still ongoing at that time, and its results were supposed to be announced on Monday. The deal with Boeing was inked on Friday.

Since the deal was signed when the ban was lifted, KIO can not annul it, and it stands. Still, the Chamber ruled that the Ministry of Defence broke the law by negotiating the deal only with Boeing without organizing a tender for the VIP planes.

According to Polish law, Ministry of Defence can order equipment without tender, if due to technical reasons, there is only one supplier or to protect exclusive rights. According to the KIO this was not the case this time.

In its decision, KIO awarded The Jet Business International and Altenrhein Aviation AG PLN 18,600 each, and dismissed the motion filed by Aerospace International Group as Polish military counterintelligence service issued a negative opinion regarding the company’s activity.

Poland bought two new and one used plane from Boeing for $523.6 million.

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