> our title:

Panama Rejects Finmeccanica's Offer for UAVs

> original title:

Panama Rejects Finmeccanica's Offer for UAVs

(Source: Forecast International; issued July 29, 2015)

SAN SALVADOR -- The Panamanian Ministry of Public Security has rejected an offer from Selex, a Finmeccanica company, for unmanned aerial vehicles (UAVs) as compensation for the defective radars it recently sold to the country.

In June 2010, Panama purchased 19 SELEX Sistemi Integrati Lyra 50 radars for $120.8 million (EUR90.5 million). In August 2014, the Panamanian government suspended installation plans after only seven units had been installed. The radars were deemed non-functional after a series of testing.

The systems were intended for maritime applications, such as drug control at sea and to prevent other illegal maritime activities. In April 2015, Selex offered to deliver UAVs that can be used for the same maritime surveillance applications.

The company made an official presentation and offer to the Panamanian government in June and asked for a response within 30 days.