It could be years before the exact cost of South Africa's controversial arms deal is known. Testifying today at the public hearings into allegations of wrongdoing, Alec Erwin, the Trade and Industry Minister, said the cost of the deal will only be known once the procurement process is completed, and that is likely to be in 18 years' time. 

When the deal was first announced two years ago, it was said the weapons would cost R30 billion. That figure was calculated according to 1999 exchange rates. By last year, the figure had climbed to R43 billion. 

Erwin says the government has not misled the public on the price of the package. He says the amount of R43 billion is a middle to upper end estimate of the cost. He added that if all the factors that could push up the price were outlined, it would sow confusion.  

Erwin testified that Defence Acquisition Chief Chippy Shaik had made no secret that his brother was a director of a company that would benefit from the package. Erwin said that he and Joe Modise, the then Defence Minister, had instructed Shaik to recuse himself from meetings where this company was involved. He said that judging by Shaik's performance, it was not warranted to replace him. 

The Minister also reacted to statements made last week by the government's Chief Negotiator, Jayendra Naidoo, that the Department of Trade and Industry did not have the capacity to implement, monitor, and enforce counter-trade deals. Erwin said that since the department had been restructured there was capacity to enforce the offset agreements. 

The public hearings into South Africa's multi-billion rand arms deal have been postponed to July 16 to give forensic experts time to complete their investigations. 

Meanwhile, judgment in the application by the SABC and E-TV to be allowed live broadcasts of the hearings is expected on Friday. 

With acknowledgement to SABC News.