F-35 purchase is risky, auditor general says

Auditor General Sheila Fraser also found significant problems with Defence Department helicopter contracts.

Fraser’s audit of the Defence Department’s purchase of Chinook and Cyclone helicopters found that the department low-balled purchase prices when seeking approval for the contracts even though officials knew costs were likely to increase with planned design upgrades. The cost of the helicopters has now doubled to $11 billion and delivery dates have been delayed by five to seven years. Answering questions about her audit, Fraser also said that she hoped no one assumed the government’s $16-billion plan to purchase F-35 fighter jets was low-risk. Many analysts say the planes don’t meet Canada’s defence needs and the opposition parties have slammed the government for not putting the purchase through a competitive bidding process.