On 27-Feb-2015 the Islands of Kiribati issued a press release with respect to the non-delivery of DHC-6-300 MSN 831, which had been scheduled to be acquired from U.S. based CAAMS LLC during 2014.
Kiribati had previously purchased another DHC-6-300 MSN 647 from CAAMS during 2013 as seen in the photograph below, and CAAMS was taking a CASA 212-200 in partial trade against the aircraft.
Following the publishing of the Kiribati press release by New Zealand media outlets, CAAMS issued the statement below, announcing a multi-million dollar suit against both Air Kiribati and the Kiribati government.
CAAMS files multi million US Dollar Law Suit against Air Kiribati and the Government of Kiribati for Fraud & Misrepresentation for failing to deliver an Air Kiribati owned CASA 212-200 msn 356 in Air Worthy condition that CAAMS was taking on partial trade for it's DHC-6-300 Twin Otter msn 647 that CAAMS sold to Air Kiribati.
The Government of Kiribati provided a Kiribati Export C of A Certificate to the USA FAA indicating the CASA 212-200 aircraft was airworthy to FAA standards but during the inspection of the CASA 212-200 the FAA Engineers found severe corrosion in the airframe and tail section of the aircraft. The FAA engineers removed the horizontal stabilizer from the CASA 212-200 and grounded the aircraft. The CASA OEM (Airbus DS Military Aircraft Inc.) informed us that the CASA 212-200 has severe corrosion and was not airworthy and recommended the aircraft be completely disassembled and shipped to the USA for repair which could exceed $1.5 million USD.
CAAMS is filing a formal complaint with the FAA and the U.S. Department of Transportation that will be posted on the U.S. Department of Transportation website when completed.