What caused the delay in supplying the Beechcraft King Air 350 aircraft?

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The delay in supplying Beechcraft King Air 350 aircraft was attributed to breaches of contract conditions.

The 2012 Auditor’s Report identified the overall procurement of five Beechcraft King Air 350 units as unsatisfactory, citing breaches of contract conditions and delays in aircraft supply. While the report noted these issues, it did not provide specific details regarding the exact nature of the contractual breaches or the reasons behind the delivery delays. The procurement was conducted through direct negotiations with Hawker Pacific Airservices Ltd, with EZ Aviation Sdn. Bhd. acting as its agent, for a total contract price of USD58.25 million (RM186.40 million).
Contractual Breaches Identified

The Auditor General's report explicitly stated that the procurement process for the five Beechcraft King Air 350 aircraft suffered from a breach of contract conditions. This non-compliance with contractual terms was a primary reason cited for the overall unsatisfactory outcome of the acquisition. The report did not, however, elaborate on the specific clauses that were breached or the implications of these breaches beyond the delay.
Unspecified Reasons for Delivery Delays

A significant factor contributing to the unsatisfactory procurement was the delay in the supply of the aircraft. The report highlighted this delay as a key weakness but did not specify the underlying causes or the extent of the time overrun. The acquisition, agreed upon in September 2005, involved sophisticated aircraft intended for training pilots and engineers, objectives which were reportedly not met partly due to these procurement issues.
Recommendations for Future Compliance

In response to these identified weaknesses, the Auditor General recommended that the Home Ministry and the Air Operation Force (PGU) ensure all payments made to contractors strictly adhere to the conditions stipulated in their contracts. Furthermore, the report suggested imposing Liquidated and Ascertained Damages on the supplier for any late delivery of special operations aircraft and equipment, in line with contractual provisions. The Auditor General also advised that contract termination be considered if the supplier failed to meet the required delivery schedule.

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What caused the delay in supplying the Beechcraft King Air 350 aircraft?

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