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("Airspan"). I Organized Airspan in 1983, and Sold It in 1997

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( RtrPUI3LIC OF THE PHII-IPPINDS MAKATI CITY )ss AFFIDAVIT I, ARCHIBALD L. PO, Filipino, 56 vears o1cl, married and with office address at PADC Hangar V, General Aviation Area, Maniia Domestlc Airport, Pasav City, after being dulY sworn in accordarce with law, do hereby depose and state: 1. I am a businessman. I am engaged in aircraJt charter and sale of helicopters through my compan!' called Lionair Incorporated ("Lionair"), a domestic corporation, organized and existing under the laws of the Philippines, with officc address at PADc Hangar V, General Aviation Area, Manila Domestic Airport, Pasay city. Mv compan]- is also the exclusive dealer in the Philippines of Robinson tlelicopter Companv of Torrance California, USA. 2. I have been into aircraft charter and sale of helicopters since 1983' through my earlier company' called Airsparl Corporation ("Airspan"). i organized Airspan in 1983, and sold it in 1997. i \,v'ant to mcntion that in 1996' I organized alother company called Asian Spirit to engage in air transport services, which became a locator at Clark Export Processing Zone. 3. In 2003, I organized l,ionair, initially as a service providcr to helicopters and other aircrafts, and later, also as exclusive dealer of Robinson Heiicopter Compa-ny lor its helicopters in the Philippines. 4. I first became exclusive dealer of Robinson helicopters in 1989 through my company Airspan. I got the exclu sive dealership when I went to New Orieans that year for the triggest annual helicopters convention, vu'here I met the owner-designer of Robinson Helicopter Company, Frank Robinson. He awarded ne the cxclusive dealership when l made w-hat he called the "fastest purchasc" ever made of his helicopters. I ciosed the purchase of one Robinson helicopter R22 in less than five mirlutes. 5. From that time on, F lank Robinson and I became close friends. I sold Airspan in 1997 w-ith the exclusive dealership of Robinson helicopters. How-e.ver, Airspan closed down in 2001. When I organized mlr company Lionair in 2003, Robinson Flelicopter Company again gave me exclusive dealership ot its helicopters in the Philippines. 6. ln 2003, I was asked to meet rr,'ith then First Gentlemal Miguel Arroyo ("F G"), and I did at his LTA office . FG inquired airout cha-rtering helicopters from me, and I toki him that there u'ere no longer any helicopters available as they had all becn loancd to Fernando Poc, Jr., rvho was running for President against his wil'e, former President Gloria Macapagal-Arroyo. 7 . I suggested to FG that the best thing for him was to buy his orvn helicopters. I oflered to him the Robinson R:*:1 Raven t helicopters. five units of which wouid be the price for just one f4uropean helicopter. FG then toid rne to go ahead, buy him five (5) Robinson helicopters. 8. I told FC the procedure involved in the importation oi the Roirinson R44 Raven I hclicoptcrs, specifically that he had to dcposit thc initial payment of US Dollar q5,000.00 for each of the R44 Raven helicopters, or US Doilar' 475,000.00, which then would set in motion Robinson's processing the orders and assigning serial numbers to the helicopters ordered. Manufacturing, of the heiicopters usua1l-y took three (3) months at that time, and when done, Robinson would give noticc for the remittance of the balance ot'the pnrchase price. 9. I.'G agreed to the procedure, and rernitted to me US Dollar +75,000.00 for: thc required deposit, which in turn, my compan,y Lionair remitted to Robinson. Accordingll', Robinson procceded to manuf:lcture the live (5) R44 Raven t helicopters. 10. During the period that Robinson was rnanufacturing thc five (5) R44 Raven t helicopters, FG asked me to assist in facilitating the ir importation. He suggested that the importation, if possible, be coursed through m1. other compzlny Asian Spirit because being a locator at the Clark Export Processing Zote, the importation by Asian Spirit woukl be tax free and the only expense rvould be for the requisite bond. 11. I aSireed to FG's proposa.l, and the helicopters u'ere clelivered to Asian Spirit at the Clark Export Processing Znne, as follorvs: {al First batch delivered: two (2) helicopters on 12 March 2004; tbi Second batch delivered: t$'o (2) helicopters on 17 March 2004; and, ic) Third batch delivered: one {1) helicopter on 24 March 200.+. I'2. As requcstcd by FG, I signed for the five (5) helicopters ir.r the name of Asian Spirit under whose name they were registered. Attached and rlade integral parts hereof as Anne-xes ATO Certificates of Registration for each of the Robinson R44 Raven helicopters in the name of Asian Spirit. llowever, FG asked rne to sign live (5) deeds of sale for ihe five (5) helicopters in hlank, rvhich he kept. I retaineri no cop-y of these rleeds, which I signed in bla.nk, meaning there was no indicated buyer. 13. Since their deliverv, registration and issuance of certificates of airworthiness, the five (5) helicopters were used and operated as directed by IiG. Horvever. one helicooter crashed and rvas deciarecl total loss in 2OO7 . 14. Mv compan,y Lionair provided the rnaintenance services to thc five [5) helicopters, and rve sent the bil1s to FG, r,vho paid for them in cash. 15. Sometirne in 2006, FG told me that he was selling the helicopters at US Do11ar 350,000.00 each. I commented that the price n'as on the high side for pre-ou.ned helicopters, but FC] said that was the price he was willing 1o seii the helicopters. 16. To facilitate the sale, l advised FG that we needed Asian Spirit to sell the helicopters to Lionair so that custom duties and taxes coulcl properl-v be paid before the helicopters u'ere sold to third parties. On F G's assent, u-e effected Asian Spirit's sale initially of tuo (2) of his helicopters to Lionair, as follou's: Unit 1 Makc and Model ROBINSON R!T4 RAVEN I IIIILICOPIER Date oi Manufacturc 09 MAR. 2004 Registrat iolr Number RP-C 2783 Airframe Serial Number 1374 Engine Serial Number L-26286-40A 'l'y pe LYCOMING IO.54O.F185 Unit 2 Make and Model RI:)BINSON R44 RAVEN I }IELICOPIER L)ate of Manufacturc 04 MAR. 2004 Registration Numbt'r RP-C 2781 Airframe Scrial Numbcr 7372 Engine Serial Number L-26281-40A Tlpt LYCOMING IO-540-F185 Attached hereto and made integral parts hereof respectively as Annexes "F" and "G" are copies of the Deed of Absolute Sale and of the oflicial receipt issued by the Bureau of Customs lor the duties and ta-xes pieid. I7. In thc middic of March 2009. a company named Manila Aerospace Products Tracling {MAI}|RA) asked Lionair to tender proposal for their purchase of the lour (4) pre-orvned helicopters. When I feferred the mattef to FG, he told me to make the proposal. 18. Accordingly, we prepared the proposal taking into account the price FG wanted for the helicopters r.r'hich was at US Dollar 350,000.0O each or US Doilar 1,400,000.00 lbr four (4| helicopters. We submitttxl the proposal to MAP|RA on 24 Mar:ch 2009, advising them at the same time that the price did not yet include the duties, ta-xes and other costs. A copy of the proposal is attached hereto and made integral part hereof as Annex "i1". 19. Thereupon, MAPTRA asked that rve revise thc proposal to include the duties, taxcs and other costs, and for on1-y three (3) pre-oivned helicopters. We subrnitted the proposal as revised the following da-v, 25 March 2009. As revised, the price as adjusted amounted to US Doliar 448,173.73 for each of the pre-owned helicopters, or a total of US l)ollar 1,344,5 12.20 for the tht'ee (3) pre-owned helicopters. A coplr of the revised proposal wc submitted to MAPTRA is attached hereto an<l rnade integral part hereof as Annex "i". 20. 'l'hereafter, MAPIRA requiretl revision of our proposal to oniy two {2J pre-orvned units and one {1) trrand new helicopter. Lionair su}rmitted the proposal 1br a brand new- I'ully equipperi helicoptcr on 13 April 2009, r:"nd the fina1 revision of the proposal lor two {2} pre-orvned helicopters, we submitted on 3 June 2009. A copy of the final revised Jrroposzrl is al.tached and rnade intcgral parl hereof as Anner "J". 2I. In the latter part of Jul-y 2009, MAP|RA intimatecl to us th.rt the]- have some problem in participating in the invitations to bid by the Philippine National Police (PNP), Philippine Narrr (PNJ and Philippine Air Irorce [PAF) 1br the supply and sale ol; among others, parts arrd materials, sen'ices, ,rnd helicopters becausc they are not authorized dea.ler of any helicopter company. 22. I flatly toid MAPTRA that lve prel'er not to do business with the go\rernment. Hou,ever, MAPIRA suggested that all they needed \ ras to be made to appear as our marketing arm on account ol Lionair's being the exclttsive dealer of Robinson llellcopte r C<lmpany in the Philippines. 23. Finding the request rcasonable, I acceded, and we issuerl a cerlification, dated 4 August 2009, to that effect, a copy of which is attached hereto and made integral part hereof as Annex "K'" 24. On 23 November 2009, Lionair and MAPTRA signed and excct-tted thc dced of absolute sale for tire trvo (2] "PRE-OWNED/USED' helicopters, as follou's: Unit 1 Make and Model ROtsiNSON R4:I RAVEN I HELICOFINIi I)ate of Manulacture 09 MAR.
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