A major contractor for South Africa's new defence equipment has come out strongly in favour of investigations into the procurement package, saying the investigations will clear misinformation being spread about the R43-billion deal. 

At the same time, the contractor announced it already had met 50 percent of its obligations on the offset side of the controversial arms deal. 

Speaking in Sandton on Sunday, Stuart McIntyre, BAE Systems executive director for South Africa, said: "We support government investigations as they will eradicate misconceptions and misinformation dominating discussion." 

BAE Systems, which will supply the South African Air Force with 28 Gripen advanced light fighter jets and 24 Hawk lead-in fighter trainers with the final aircraft to be delivered in 2011, has sent a statement to President Thabo Mbeki's office addressing "a number of issues related to our involvement in the strategic defence procure programme". 

Sent a statement to President Thabo Mbeki's office 

McIntyre said he did not expect a response as the statement was to inform the president about the situation with regard to BAE Systems' contracts with the government. 

The industrial participation contracts, which form an integral part of the procurement programme, and have been dismissed, almost out of hand, in some quarters, as never being able to provide the job opportunities and economic boost promised, are "well on track" in the case of BAE Systems. 

Regarding the defence industrial participation offsets, 55 percent of a contractual R10-billion obligation had already been secured, while the multinational aerospace giant had so far implemented nine projects. 

The non-defence projects underway include: 

the export of locally manufactured power generating components; 
the procurement of automotive components; 
the export of mining equipment components; and 
an agri-business training and business centre. 

With acknowledgement to Indpendent Online.