Arms Deal Action "Within 24 hours" |
Publication | The Star |
Date | 2001-11-16 |
Reporter | Marvin Meintjies |
Web Link | www.iol.co.za |
The report to parliament by the three
agencies probing the arms deal is not the end of the matter.
National Director of Public Prosecution Bulelani Ngcuka promised in parliament
on Thursday that they would act "within 24 hours" on individuals and
entities against whom there is substantive proof of corruption relating to the
arms deal.
These allegations appear to have substance and are still being probed:
That various role-players in the overall acquisition process have conflicts of
interest due to directorships, shareholding, relatives, etc;
That a high-ranking official is a shareholder and a chairman of a local
sub-contractor that is a beneficiary of a prime contractor's
direct-industrial-participation-offset offer;
That various role-players in the acquisition process hold shares through
nominees in entities which benefited from the acquisition;
That persons involved in the acquisition process, including high-ranking
officials, received various gifts;
That a bidder was overlooked in favour of a prime contractor at unit price of
more than R3-million above the cost of the bidder's product;
That an important role-player in the acquisition process had said to several
bidders that they would have to come to an arrangement with two South African
sub-contractors for their bids to succeed;
That Futuristic Business Solutions did not have the capacity and had to
subcontract the initial work allocated to them until the merger with Conlog/Logtek.
Former ANC chief whip Tony Yengeni and the man who allegedly gave him a 4x4 at a
47 percent discount, Michael Woerfel, share the distinction of being the probe's
first arrests.
Woerfel is the suspended managing director of the European Aeronautic Defence
and Space Company (EADS), which benefited through a sub-contract in the arms
deal.
They are both charged with corruption and forgery, while Yengeni is also charged
with perjury and an alternative count of fraud. They will appear in court again
in late January 2002.
Yengeni chaired Parliament's joint standing committee on defence at the time the
defence review, which led to the current procurement programme, was conducted.
Woerfel is alleged to have sold him the Mercedes-Benz ML320 at a huge discount
and at a loss to his own company.
Yengeni was just one of 30 VIPs and others who got cars through EADS. No others
have been charged, but more arrests of prominent people are expected.
The report to parliament recommended that the assembly should take urgent steps
to ensure that, for a reasonable time after they leave office, high-ranking
officials and office bearers, such as ministers and deputy ministers, are not
allowed to be involved in contracts concluded with the state.
The report further recommended that the department of defence should urgently
audit personnel to ensure its staff comply with security clearance requirements.
With acknowledgement to Marvin Meintjies, The Star and Independent Online.