The Defense Acquisition Agency is considering additional sanctions against LIG Defense & Aerospace (LIG D&A) following allegations of bribery involving its employees. If the designation of LIG D&A as a defense contractor for the small drone countermeasure system is canceled, it could halt the contract for mass production.
On October 25, the Defense Acquisition Agency requested the Ministry of Trade, Industry and Energy to review the cancellation of LIG D&A's designation as a defense contractor related to the small drone countermeasure system.
Previously, the Defense Acquisition Agency imposed a two-year restriction on LIG D&A's bidding eligibility due to allegations that its executives provided bribes worth millions of won to agency employees during various weapon development projects. The small drone countermeasure system was included in these projects.
However, a bidding restriction alone does not prevent contracts awarded under the defense contractor designation system. This system allows for contracts with designated companies for weapon systems that are difficult to procure through regular market competition.
LIG D&A is the designated contractor for the development of the small drone countermeasure system. If its designation is revoked, the company will be unable to enter into contracts for mass production.
The small drone countermeasure system aims to neutralize enemy drones using electronic jamming and control devices, with a total project cost of 122.3 billion won.
Additionally, the Defense Acquisition Agency is reviewing the cancellation of LIG D&A's cost management certification due to cost irregularities. If the certification is revoked, the agency plans to recover an additional 1% of the compensation profit, which is estimated to amount to hundreds of millions of won.
The Defense Acquisition Agency stated that it will pursue sanctions in accordance with the law for misconduct while also reviewing and strengthening internal management and oversight to prevent future violations.
* This article has been translated by AI.
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