The Philippines defence ministry has cancelled a 1.2 billion peso ($29 million) contract for six MD Helicopters MD530F combat helicopters after an investigation found serious flaws in the bidding process.

Losing bidder PZL Swidnik, which protested award of the contract, confirms the Philippines plans a new tender for its night-capable attack helicopter requirement, but does not know when it will be issued.

Poland's PZL, which offered the twin-turbine Kania, argued the single-engined MD530F did not meet the payload requirement. Reports from Manila say the defence ministry is investigating why technical specifications where altered during the bidding process.