Defense dismisses Santa Bárbara's appeal against contracts with Indra and Grup Escribano

MadridThe Ministry of Defense has dismissed the appeal filed by the defense company Santa Bárbara Sistemas, a subsidiary of the American General Dynamics, against the contracts for the new wheeled and tracked artillery for the Spanish Army, which the government of Pedro Sánchez awarded to Indra and Escribano Mechanical & Engineering (EM&E) last year, as reported by the ministry. The artillery contracts amounted to 7.24 billion euros and were part of the Special Modernization Programs (PEM) that the government of Pedro Sánchez approved and awarded last year to increase military spending to 2% of GDP, as committed to NATO. In a statement, the ministry explains that it "agrees to the full dismissal of all claims filed" by Santa Bárbara.

Once this administrative route has been resolved, Santa Bárbara intends to continue with the legal battle and has announced that it will file an appeal before the National Court. For Defense, which denies Santa Bárbara access to the contracting file, the resolution "reinforces the legal certainty of the [award] process and validates the administration's actions in an area of special relevance for defense and industry," the ministry indicates in a statement. "It is concluded that the contracting procedure has been carried out in full compliance with current legislation," state those from Margarita Robles' ministry.

Santa Bárbara also decided to file an appeal against a government decree after feeling excluded from the negotiation of contracts from the Ministry of Defense and Industry. The disputed funds – they are loans worth 3 billion euros at 0% interest – were also awarded to Indra and Escribano Mechanical & Engineering (EM&E), and the Supreme Court must now decide whether to accept the suspension of the award as a precautionary measure.