Peter La Franchi/CANBERRA

Australian defence minister Peter Reith has confirmed that an internal Department of Defence audit has been carried out into the proposed sale of the Royal Australian Air Force's PGSUS AGM-142 Popeye missiles to a third nation, possibly Greece. The missile would be replaced by Lockheed Martin's AGM-158 Joint Air-to-Surface Stand-off Missile (JASSM).

The audit, carried out by the DoD's Management Branch over the past three weeks at the minister's request, has found the proposed deals do not exceed Australian due process requirements.

The minister ordered the audit after formal complaints about the legality of the proposed deals were made by a Canberra-based defence industry lobbyist acting on behalf of unidentified parties. The complaints followed disclosure of the plans by Flight International (6-12 February).

According to Reith's office, "a preliminary draft audit finding is that the departmental process leading to the development of the [AGM-142 sale/JASSM acquisition] business case is transparent. Due process has occurred."

The preliminary findings are understood to provide the Australian DoD with enough leverage to resume efforts to secure a deal. The move was suspended in mid- February after the complaints.

Source: Flight International