COEGA Development Corporation (CDC ) has taken the unusual step of inviting an investigation by the auditor-general in the wake of allegations of impropriety involving SA's controversial R43bn arms deal.

The office of Auditor-General Shauket Fakie has accepted the invitation to review the CDC's corporate governance practices.

The CDC aims to clear itself of public allegations by Colm Allan of the public service watchdog, the independent Public Service Accountability Monitor. Allan's allegations partly focused on former trade and industry deputy director-general Paul Jourdan, who was a member of the international team given the task of securing the best offset arrangements in return for the arms purchases.

Jourdan is now a director in the corporation.

Fakie's office was invited by the corporation to conduct a review of its policies, procedures and systems in respect of all its activities.

Fakie, together with Public Protector Selby Baqwa and the directorate of public prosecutions, headed by Bulelani Ngcuka, is involved in investigating the arms deal.

CDC finance manager Paul Leese said the corporation was "very pleased" that Fakie had agreed to the review.

"We believe this will lay to rest the concerns which have been raised. Apart from our statutory external audit, which has always resulted in unqualified financial statements, the CDC's business practices have also been audited by no less than three institutions in the past year, namely the Port Elizabeth Technikon, the Development Bank of SA and the Eastern Cape Development Corporation," said Leese.

Leese said the CDC was confident the auditor-general's review would find that the corporation adhered to the "highest professional and ethical standards" in the manner in which it conducted business.

The review is to start soon.  

With acknowledgment to Sibusiso Bubesi and Business Day.