https://www.thetimes.co.uk/article/m...anks-gxmdfh65f
Ministry of Defence told to pay £1.4 billion for faulty Ajax tanks
The Ministry of Defence is facing mounting financial pressure ahead of the budget after being told it must pay £1.4 billion for the disastrous Ajax armoured vehicle programme…
The Ministry of Defence signed a £5.5 billion contract in 2014 with General Dynamics to deliver 589 light tanks.
Wallace halted the payments two years ago after troops suffered hearing loss during trials of the armoured vehicles with some soldiers discharged from the army and paid compensation.
General Dynamics claims the noise and vibration problems have been resolved and wants payment to restart by the end of March. The American company is demanding £1.4 billion….
Soldiers are yet to receive a single working vehicle more than 13 years after the programme began. But despite speculation that Wallace could cancel the contract altogether, ministers are increasingly satisfied that noise and vibration problems have been fixed….
“Ajax is starting to get back on track,” a defence source said. “It has successfully passed its User Validation Trials and is a few weeks into its next stages. The Ministry of Defence has been firm with General Dynamics and the army to ensure we rectify any faults and also to ensure that both parties abide by the terms of the contract.”
However, Mark Francois, a former armed forces minister, said: “After ten years and over £4 billion of UK taxpayer’s money we still don’t have a single Ajax vehicle in front-line service. There is no way the company should be paid a further penny, unless and until they can guarantee a date on which Ajax would be completely safe to enter operational service. No firm date, no cash.”….
David Williams, the permanent secretary at the MoD, said ministers would shortly announce when Ajax would be delivered to soldiers. Appearing before the defence select committee, he said that the government would restart payments only once the date was announced.