Full story - http://www.news.com.au/story/0,10117...-29277,00.html
DEFENCE has in stock more than $1 billion worth of bombs and ammunition that cannot be used immediately by the military, an audit has found.
A report by the Auditor-General tabled in Parliament today shows the Defence Materiel Organisation (DMO) held more than $2 billion worth of bombs, missiles and other ammunition, known as explosive ordnance.
But defence advised the auditor that "the value of other than 'serviceable' inventory had increased to $1.04 billion" in October last year.
"The ANAO (Australian National Audit Office) identified that serviceability issues have impacted on the availability of certain types of explosive ordnance to Army," the report says.
The report acknowledges that some of the ordnance could be repaired but at least $300 million worth could not be made serviceable.With this and the Seasprite fiasco you do tend to wonder what sort of idiots are in charge, it's amazing they function at all, though I suppose the press have overblown it a bit as usual.Senator Bishop said defence had also failed to justify prepayments made to ordnance contractors.
"For example, it not only paid more than $20 million up-front on a $26-million contract for missiles, it also negotiated a series of benefits that never materialised," Senator Bishop said.