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Wednesday, September 03, 2008

Fitzgibbon set to scrap $150m defence contract

The axe is poised to fall on another troubled defence project, the $150 million contract to buy unmanned aerial vehicles for the Australian Defence Force.

It is understood the Defence Materiel Organisation has recommended to Defence Minister Joel Fitzgibbon that the problem-plagued contract be axed. A formal announcement by Mr Fitzgibbon is expected later this week.

The Israeli-built I-View 250 UAV system is dogged with technical problems and more than two years behind schedule. The relationship between the partners in the project, US aircraft builder Boeing and Israeli Aerospace Industries, has deteriorated in recent months.

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