Defense lobbying affair in Germany

BERLIN, Dec. 9 (UPI) -- A media report accuses German lawmakers of acting in the interest of defense industry lobbying groups by delaying purchase decisions for military equipment for German troops in Afghanistan.

German news magazine Der Spiegel writes that German defense industry giant Krauss-Maffei Wegmann has succeeded in influencing German lawmakers on defense equipment purchases.

The article, published in Der Spiegel's latest edition from Monday, says Frank Haun, a senior manager of KMW with an office in Berlin, has convinced a lawmaker of German Chancellor Angela Merkel's conservatives to delay a Defense Ministry decision to purchase armored vehicles for the Afghanistan mission until the Munich-based company could send its own product into the bidding. The magazine says its story is based on letters, confidential memos and parliamentary documents it has obtained.

Around two years ago, Berlin decided to purchase 600 armored vehicles to better safeguard its troops in Afghanistan, who were increasingly targeted by roadside bombings. The contract is worth at least $400 million, Der Spiegel writes.

The Defense Ministry chose the Eagle IV, produced by Switzerland-based Mowag, a daughter company of General Dynamics.

Bernd Siebert, a lawmaker and one of Haun's longtime contacts in the ensuing months, raised repeated questions about the Eagle IV, lobbying for the bigger and heavier Dingo instead -- an armored vehicle made by KMW.

Berlin refused to change its purchasing decision but together with another lawmaker, Social Democrat defense expert Johannes Kahrs, Siebert delayed the parliamentary process so greatly that a decision to purchase 200 Eagle IV wasn't green-lighted until October 2008. The contract for the additional 400 vehicles is up for bidding in 2010 -- just in time for KMW to join.

The company has since developed its own armored vehicle. The so-called AMPV should be ready by early next year and could make the cut after all.

Mowag is based in Kreuzlingen, Switzerland. More than 10,000 of its armored vehicles are in operation worldwide. General Dynamics purchased Mowag, which has around 500 employees, in 2003.

Munich-based KMW Krauss-Maffei produces railroad locomotives, tanks, self-propelled artillery and armored vehicles. The company's most famous product is the Leopard tank, which has been sold to armed forces all over the world.