Johannesburg - People who still had to account for the role they played in the apartheid system, including involvement with murder squads, had become the defenders of high morality in their accusations of government corruption in the multibillion rand arms deal, Mbeki said later on Friday in a letter published on the ANC's online publication.

"Others, who discharged other functions in the counter-offensive of the apartheid system, emerged as the greatest democrats and representatives of the people that our country had ever seen," he said.

The president was commenting in response to criticism from various political and public quarters following a government-appointed investigation team's findings that absolved the government of any wrongdoing in the arms deal.

"At the base of all this, lies the racist conviction that Africans, who now govern our country, are naturally prone to corruption, venality and mismanagement," he said.

Mbeki said people with hidden agendas would not be deterred by the truth evident in the findings of the report.

Political vocabulary

"In spite of everything we have said so far, the fact however is that for a long time now, our country and people have been subjected to an intense campaign that sought to convince everybody that there was clear evidence of corruption with regard to the defence acquisition," Mbeki said.

He reminded that firm predictions had been made about whose heads would roll and that public battles had been fought around the question of who should be mandated to dig up the dirt.

Every accuser had been given the necessary space in the mass media to be heard and seen both domestically and internationally.

"People of no consequence to our national life became the acclaimed heroes and heroines of the cause of honest, transparent and accountable government."

The phrase "arms scandal" had become part of the country's political vocabulary and each allegation of corruption had been marketed as established fact.

'Prone to corruption, venality and mismanagement'

"So has it now been said, boldly, that the report of the investigation team is a cover-up and a public relations exercise. The truth stands in the way of the accusers," Mbeki said.

"At the base of all this, lies the racist conviction that Africans, who now govern our country, are naturally prone to corruption, venality and mismanagement," he said.

It was therefore not very difficult to propagate the lie and insult that the government was, necessarily and obviously, guilty of corruption with regard to the defence acquisition.

"As soon as the report of the investigators was issued yesterday (Thursday), so soon did the campaign begin to discredit this report. The truth will not be allowed to stand in the way of what has to be proved - that Africans and black people in general are corrupt."

The struggle for the creation of a democratic, non-racial and non-sexist society demanded a government response, he said.

"We have the facts about the defence acquisition. The question that remains to be answered is whether we have the courage and morality to demand an end to the insulting lie communicated everyday, that, as Africans, we are less than human."

Hoping for an end to controversy

Earlier on Friday, President Mbeki expressed the hope that the findings of the multi-agency probe into South Africa's multibillion rand arms deal would bring an end to the controversy over the matter.

He said if there had been any wrongdoing, including the leakage of classified documents, the law should take its course.

Shabir Shaik, a bidding contractor in the multi-billion rand arms procurement deal, was arrested in Durban on Friday morning for allegedly being in the possession of cabinet minutes on the arms procurement.

'We continue with the deal'

Defence Minister Mosiuoa Lekota on Thursday said the decisions of the arms acquisition process would stand. There would be no further review.

Lekota said government was concerned, however, about the report's finding that "there may have been individuals and institutions who used, or attempted to use, their positions improperly... to obtain undue benefits in relation to these packages".

His views were echoed by Trade and Industry Minister Alec Erwin, who said the contracts "remain intact, they are not flawed, we continue with the deal".

Lekota said government was concerned, however, about the report's finding that "there may have been individuals and institutions who used, or attempted to use, their positions improperly ... to obtain undue benefits in relation to these packages".