Publication: Engineering News Issued: Date: 2001-05-03 Reporter: Keith Campbell Editor:

Defence Industry Image dealt a Blow


Publication  Engineering News
Date 2001-05-03
Reporter Keith Campbell
Web Link www.engineeringnews.co.za

   

The head of a leading South African electronics company has expressed dismay at the damage being done to the image of the defence industry by allegations of corruption in the multibillion-rand programme to re-equip the South African National Defence Force – allegations which are now being accompanied by indications of, at least, inappropriate behaviour concerning some of the defence deals, and has called for a full investigation into the issue. 

“We’d like to see the matter resolved by a thorough investigation, as soon as possible, to stop all the speculation that is taking place and which is giving the defence industry an unprofessional profile,” asserts Grintek group MD Sybrand Grobbelaar. 

“I’m disappointed to learn that there is the possibility of malpractices in the defence industry,” he admits. 

The arms re-equipping programme is proving most beneficial to Grintek – although defence now accounts for only 30 % of the group’s turnover – by helping the company to penetrate new markets. 

“We’re growing our exports on the back of the defence package and, for example, we’ve become a key supplier to Saab – the original communications system for the Gripen fighter has been replaced by a Grintek system for all export aircraft, and our system will also be retrofitted to those Gripens already in Swedish Air Force service,” he reports. 

The direct and indirect defence industrial participation (Dip) and national industrial participation (Nip) requirements laid down by the Department of Trade and Industry made leading international defence groups talk to South African companies, in order to find local partners. 

“The Dip and Nip programmes have acted as incredible marketing campaigns for the South African defence industry,” argues Grobbelaar. 

In turn, these new international links make it much easier for South African companies to penetrate international markets. 

“We can provide our foreign partners with lower research and development costs, and access to the innovativeness of the South African people, giving a good probability of developing state-of-the-art yet affordable solutions for their customers,” elucidates Grobbelaar. 

“The experience we’ve had with Saab could be written up as a case-study of how international co-operation should be done,” he affirms.

With acknowledgement to Keith Campbell and Engineering News.