Saudis owe Canada $1.8B payment in controversial arms deal

      Published on Sunday, 23 December , 2018      220 Views     
Saudis owe Canada $1.8B payment in controversial arms deal

  • Government

Saudi Arabia still owes Canada $1.84 billion for a shipment of light-armoured vehicles, adding a new layer of uncertainty to the already controversial deal.



An undisclosed number of light-armored vehicles assembled at the General Dynamics plant in London, Ont. were delivered to Saudi Arabia, but the kingdom is taking months to pay up.

The delayed payment is detailed in documents from the Crown agency managing the deal, which show the payment outstanding as of Sept. 30.

The massive $15-billion arms deal has been under intense scrutiny. Critics have called for the federal government to abandon the deal, citing Saudi Arabia’s role in the brutal war in Yemen and the killing of Washington Post journalist Jamal Khashoggi, who was critical of the Middle Eastern kingdom.

More than 2,000 jobs at General Dynamics and another 500 suppliers are now at risk. The MP for the area says the deal, struck by Stephen Harper’s Conservative government in 2014 and upheld by Prime Minister Justin Trudeau, should’ve never been signed.

“An unreliable customer that is capable of murder and capable of leaving 14 million people in Yemen of starving to death – this is not the kind of customer that we want to deal with as a nation,” said Irene Mathyssen, an NDP MP for London-Fanshawe.

Details of the deal remain secret, but sources tell CTV News the contract is so lopsided that it allows the Saudi government to pull out at any time without consequence. However, if Canada wants to leave, there could be billions of dollars in penalties.

In a recent sit-down interview with Evan Solomon, host of CTV’s Question Period, Trudeau said the federal government is assessing its options on the deal.

“We are engaged with the export permits to try and see if there is a way of no longer exporting these vehicles to Saudi Arabia,” Trudeau said.

The kingdom may be experiencing cash flow issues, particularly when it comes to the crashing prices of oil.

According to University of Waterloo political science professor Bessma Momani, wealthy Saudis may already be looking for an escape hatch.



“There is an exodus of capital. And people are taking out their money for fear that the corruption crackdown that the prince has sort of started may in fact come to their door,” Momani told CTV News.

Keywords:
Category Government | 2018/12/23 latest update at 4:00 AM
Source : Internet | Photocredit : Google
221 Views
Comments Add comment



Related Articles

The editorial staff of Saudi Arabia Today would like to give all of its readers from Gulf and Saudi Arabia and the whole world the opportunity to participate actively in the development of the website! If you have something interesting, fun, scandalous - just something worth to be seen from more people. Capture it and share it in the Saudi Arabia Today with a short text.

Do you have information you want to reach our readers?

Send article/s

You can subscribe to our Facebook, Twitter and Google pages or use our RSS feed channel to always read the most important news about Saudi Arabia, the Gulf and the world.


Sponsored Publications



STEP Conference To Make Its Mark In Saudi Arabia In March
Saudi Arabia Saudi Arabia news

STEP Conference To Make Its Mark In Saudi Arabia In March

STEP Conference is getting all set to launch its first summit in the Kingdom of Saudi Arabia in Riyadh on…

Oman tourists expected to rise to 3.5m by 2023

Saudi Arabia new rules

Property prices continue to fall in key UAE markets

King Salman receives Kuwait’s National Assembly Speaker in Riyadh King

King Salman receives Kuwait’s National Assembly Speaker in Riyadh

King Salman received Kuwait’s National Assembly Speaker Marzouq Al-Ghanim and other members of the Assembly at Al-Yamamah Palace…

Saudi Arabia: King Salman welcomes Lavrov to Riyadh Gulf TV, Saudi Arabia

Saudi Arabia: King Salman welcomes Lavrov to Riyadh

King of Saudi Arabia Salman bin Abdulaziz Al-Saud received Russian Foreign Minister Sergei Lavrov and his Russian delegation…

Saudi king meets Russian foreign minister in Riyadh King

Saudi king meets Russian foreign minister in Riyadh

Saudi Arabia’s King Salman met Russian Foreign Minister Sergei Lavrov in Riyadh on Tuesday, footage on the Russian…

King Salman receives dignitaries in Riyadh King

King Salman receives dignitaries in Riyadh

The Kingdom’s Grand Mufti Sheikh Abdul Aziz Al-Asheikh, senior scholars, ministers and a group of citizens called on…

GULF TV

Popular in GULF TV

PIRELLI “DREAMING” – THE CAL 2019 making of Full Version | Fashion Channel

1998 Views

A photographic tale of the aspirations of four women and their determination to achieve their goals, each one…

Latest videos in GULF TV

Events

Lifestyle

Culture

Sport

Science & Technology

Government