Europe News

Court: Procurement of armoured vehicles violated Swedish laws

Oct 29, 2009, 16:00 GMT

Stockholm - A several-hundred-million euro order for over 100 Finnish-built armoured vehicles for the Swedish military violated public procurement laws and must be redone, a court ruled Thursday. In a surprise move, the Swedish Defence Materiel Administration (FMV) in June said it planned to buy the eight-wheel vehicles from the Finnish company Patria Land & Armament Oy instead of the Swedish- based Hagglunds. The order for 113 armoured vehicles and other equipment is worth 240 million euros (355 million dollars). Hagglunds, part of the defence group BAE Systems, filed a complaint after losing the tender. In addition, hundreds of jobs were at risk at the Hagglunds plant in Ornskoldsvik, northern Sweden. The Stockholm county administrative court said the period for the bid was far too short and there were also unclear terms. FMV was ordered to issue a new tender, with FMV's legal department saying it would study the ruling before deciding its next step.

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