Saudi Arabia did not pay its Debt to MKEK
The 2019 audit report, which includes the 2017 and 2018 accounts of the Machinery and Chemical Industry Corporation (MKEK), was examined in the Turkish Grand National Assembly. The report criticized that the agreement did not include any sanctions regarding the buyer's failure to pay the debt even though the delivery was made.
According to the report, the agreement was between the Royal Saudi Arabian Air Force (RSAF) and MKEK. The Kingdom imported three different ammunition types in 2016 and 2017, worth 36.3 million USD (USD), 51.2 million USD and 32.8 million USD. The total value of the contract is 120.3 million USD.
Within the contracts' scope, a total of 10 separate shipments were made as of April 2020; 48.1 million USD was collected, including advance payments, but 66.2 million USD was not collected.
According to the contract, an advance payment was due before delivery. The balance had to be paid within three weeks when the shipment was completed.
According to the audit report, MKEK's receivables increased by 51 per cent. MKEK's receivables from abroad increased by 36.8 per cent compared to the previous period. 461 million 709 thousand TL of this was due to product exports to Saudi Arabia and 49 million 864 thousand TL to other countries
Previously the Kingdom was buying a great amount of ammunition.