MANILA, Feb. 13 (Xinhua) -- The Philippines officially terminated on Tuesday a multimillion dollar helicopter deal with Canada.
"The Department of National Defense (DND) has issued a notice to Canadian Commercial Corporation (CCC) terminating the contract for the supply and delivery of 16 units of Bell 412 Combat Utility helicopters for the Philippine Air Force," the DND said in a statement.
The DND said the move is in compliance with the directive of President Rodrigo Duterte to cancel the 233-million-dollar-deal between the Philippines and Bell Helicopter, a Textron Inc. company.
"The termination was precipitated by the review ordered by the Canadian government on the implementation of the signed Contract Agreement between the DND and CCC," the DND statement said.
Duterte has ordered the cancellation of the deal when Canada announced it is imposing a review of the deal on suspicion that the helicopters might be used in the Philippine military's counter-insurgency operations.
In connection with the cancellation of the contract with Bell Helicopter, Duterte has ordered the DND to look for other sources of helicopters and military equipment outside of Canada and the United States. He suggested China, Russia, Turkey and South Korea as possible new sources that the military can buy equipment.
"While the combat utility helicopters being purchased are primarily for the purpose of transporting personnel and supplies, the DND said it believes that it does not owe the Canadian government any justification for an outright purchase of equipment from a privately-owned company.
"The department will continue to pursue the modernization program, and will look into procuring the combat utility helicopters from other countries in lieu of the Bell 412," the statement read.