Defence secretly considered walking away from the $50 billion French submarine deal during protracted and at times bitter contract negotiations, and started drawing up contingency plans for the new fleet, the ABC reports.
The revelations are contained in a new report by the auditor-general that also confirms the program is running nine months late and that Defence is unable to show whether the $396 million spent so far has been “fully effective”.
But the Minister for Defence Linda Reynolds said the program was complex.