Europeans call for defense contract probe

BRUSSELS, July 26 (UPI) -- Sales of German submarines to Greece and Portugal look all the more suspicious given the economic times, a defense expert from London said.

"What's striking about Greece and Portugal is the inappropriateness of these purchases. It makes no sense at all to urge austerity and at the same time encourage them to buy weapons," said Nick Witney at the European Council on Foreign Relations, the EUobserver reported Monday.

Members of the European Parliament have called for an investigation into the $1.3 billion-per-submarine purchases and the defense industry, where deals are commonly couched in sweetheart deals -- a billion dollar submarine order for Germany and a host of deals for Greece that pave the way for a signature on the contract.

The EUobserver said a German investigation was exploring alleged bribes paid by engineering firm Ferrostaal, which not only allegedly paid bribes, but accepted fees from other companies for bribes paid on their behalf -- subcontracted bribery.

"Where there's a nexus of security, secrecy and lack of competition, there is always an open field for corruption," Witney said.

Ana Gomes, a member of the European Parliament from Portugal said, "There are contracts negotiated among companies with government favoring and in total disregard of the competition rules."

"There are plenty of reasons why the European Union should investigate," she said.