A PUBLIC service watchdog based at Rhodes University has raised new concerns about a possible conflict of interests in the Coega deep-water port development and the controversial R43bn arms deal.

The independent Public Service Accountability Monitor, headed by Colm Allan, raised the concerns yesterday afternoon. They came in the wake of recent criticisms of the development, which were fiercely defended by the Coega Development Project the private company appointed by Trade and Industry Minister Alec Erwin to implement the Coega project.

Allan pointed out that the dual roles of individuals involved in both projects could have led to a conflict of interest.

He said former trade and industry director-general Paul Jourdan was a member of the international team given the task of securing the best offset arrangements in return for the arms purchases. He is now a director of the Coega Development Corporation.

Jourdan said last night Coega did not feature in any of the contracts for any of the projects and those firms that suggested it, were turned down.

"I told them industrial participation did not cover infrastructure," he said.

According to Allan, Moss Ngoasheng was the special economic adviser to then deputy president Thabo Mbeki at the time of the defence review, which decided that new military hardware was needed. He is now chairman of the Coega Development Corporation's board of directors.

Ngoasheng declined to comment.

Saki Macozoma is mentioned as having given the undertaking while Transnet MD last year that Transnet would bear the costs for the construction of the Coega harbour. A joint venture between Safika, a company in which Macozoma and Ngoasheng have stakes, and two firms of consulting engineers has been awarded three contracts by the Coega Development Corporation. Macozoma was unavailable for comment last night.

Allan's report examines the development of the arms deal alongside the Coega proposals. In it the organisation says it is "disturbing that nearly two years after government signed the arms deal", not a cent has been invested as promised in Coega".  

With acknowledgement to Bonile Ngqiyaza and Business Day.