Japan's Defence Agency is to suspend all transactions with Fuji Heavy Industries for the next 12 months from April to penalise it for its role in a bribery scandal. Several aerospace programmes could be affected, most notably the T-3 trainer replacement programme.
The government says only essential work will be placed with the engineering, automobile and aerospace manufacturer. The agency says that as a result of the decision, it would drop funds for several non-essential new aircraft and systems, that would probably have been procured from Fuji Heavy, from its budget request for the fiscal year starting in April.
Fuji Heavy Industrie's chairman, Isamu Kawai, was arrested earlier this month on suspicion of instructing a subordinate to give bribes to Yojiro Nakajima, formerly a Lower House member and parliamentary vice defence minister, to help the company secure aircraft orders.
A senior defence agency source said that although it is still reviewing its funding for Fuji for next year, "-we have more or less decided to withhold funding worth ´680 million [$60 million] to start development of the T-7 replacement for the T-3 trainer. Funding for the Shinmaywa US-1A amphibian project in which Fuji has an interest will also be and reduced from ´1.49 billion to´200 million. The budget for maintenance work will probably remain intact."
Source: Flight International
