Warship builder, government defend against conflict of interest allegations
OTTAWA — The multibillion-dollar effort to replace the navy’s warship fleet is being buffeted by concerns about a potential conflict of interest involving the Halifax company that is leading the project.
Canada’s Irving Shipbuilding and British shipbuilder BAE Systems recently announced they have paired together to bid on a $5-billion maintenance and support contract for the navy’s new Arctic patrol vessels and resupply ships.
But BAE is also expected to enter its Type 26 frigate into a competition being run by Irving, in conjunction with the Defence Department, to select the warship design to replace the navy’s 12 frigates and three destroyers.
Irving will ultimately build the vessels.