CAPE TOWN Government views the allegations of corruption surrounding its arms purchases "seriously" but does not have indisputable evidence to prove it, says Finance Minister Trevor Manuel. 

In a written reply to a parliamentary question by Pan African Congress MP Patricia de Lille, Manuel said: "At this stage I am not aware of any evidence that indisputably implicates the main contractors and that would warrant the repudiation of guarantees or the cancellation of contracts.

"A decision will be taken to best safeguard the interests of the state once the matter has been adequately investigated. The decision making process would involve the minister of defence and, if necessary, the office of the state attorney. Ultimately, the matter will be reported to cabinet."

De Lille said there had been allegations and evidence of corruption relating to the purchase of warplanes from Sweden and Britain and warships from Germany which were referred to the Heath anti-corruption unit in November last year.

She said the auditor-general, the investigating directorate for serious economic offences and the SA National Defence Force had also been investigating malpractices relating to these acquisitions. She asked Manuel whether the financial guarantees would be repudiated and the contracts cancelled as fraudulent should the allegations be proved.

With acknowledgement to Linda Ensor and Business Day