Critics of South Africa's controversial R32-billion arms deal submitted documents to parliament's watchdog public accounts committee on Monday, implicating African National Congress politicians and their associates in alleged corruption.

In a letter to committee chairperson Dr Gavin Woods, Terry Crawford-Browne of Economists Allied for Arms Reduction said the allegations challenged MPs "with an enormous constitutional crisis".

Naming some of the alleged beneficiaries, Crawford-Browne claimed they were party "to a massive international swindle".

Woods confirmed that he had been briefed by Crawford-Browne on Monday. 

'Offsets are a scam promoted by the armaments industry' His committee plans to question the department of defence on October 11 about the auditor-general's special report on the arms deal.

Public Protector Selby Baqwa is also investigating the deal, as well as the Investigating Directorate: Serious Economic Offences, while Judge Willem Heath is expected to apply for a presidential proclamation for a formal probe.

In his report tabled two weeks ago Auditor-General Shauket Fakie highlighted material deviations from generally accepted procurement practice.

He also recommended a forensic audit into the deal's subcontracts, which fell outside the scope of his probe and which have been the subject of repeated corruption claims.

In his letter, Crawford-Browne said the cabinet had approved the arms deal subject to "affordability" made possible by means of industrial offset agreements in terms of which the country selling the weapons would also invest in South Africa.

"International experience has shown that the only function which offsets perform for recipient countries is to provide political legitimisation for the large outlays required on modern defence systems by allowing policy makers to point to apparent, but ultimately non-existent economic benefits.

"In short, offsets are a scam promoted by the armaments industry, with connivance of politicians, to fleece the taxpayers of both supplier and recipient countries," Crawford-Browne said.

If the acquisition programme was to be made "affordable" by means of offsets and if as alleged, the offsets and sub-contracts were riddled with corruption, the proper way forward would be for the minister of finance to repudiate the guarantees to the British Export Credit Guarantee Department and the German Hermes agency.

"I urge your committee to make such a recommendation. I also request an invitation to make an oral submission to the committee's public hearings on October 11," Crawford-Browne said.

Woods said he would meet senior members of the auditor-general's office this week to discuss the special report into the arms deal.

On Crawford-Browne's claims, he said: "I have an obligation to accept evidence, but I also have an obligation to find out whether the claims are factual.

"We will look at the document, some of the claims might be factual, others not."

While Crawford-Browne would not be allowed to appear before the committee on October 11, Woods said he would ask MPs whether the former banker could brief them at another time.

Crawford-Browne's document might also help the committee formulate questions to ask the department of defence when it appeared before the committee next week, Woods said.

If the committee approved the auditor-general's recommendation that a forensic audit into the subcontracts be instituted, Crawford-Browne's claims might also form part of the investigation, he said. - Sapa

With acknowledgement to Sapa and Independent Online.