Parliament's watchdog public accounts committee is expected to recommend a forensic audit into the subcontracts of South Africa's controversial R30-billion arms deal on Monday.

The deal, signed in late 1999, has been the subject of repeated corruption claims.

Earlier this month, defence officials associated with the arms deal were grilled for seven hours in a parliamentary hearing into details of the package.

This followed Auditor-General Shauket Fakie's special report to Parliament, released last month, which found that generally accepted procurement practices were not followed. Fakie recommended a special forensic audit into the deal's subcontracts, some of which have been the subject of corruption claims.

'Ultimately, the matter will be reported to Cabinet' The Heath Commission, the Investigating Directorate of Serious Economic Offences, and Public Protector Selby Baqwa have all launched investigations into the deal.

The committee's report on the main deal will be made public at its meeting on Monday morning.

Last week, committee chair Dr Gavin Woods said the committee had not yet considered questioning Cabinet ministers on aspects of the defence procurement package.

Government spokesperson Joel Netshitenzhe said earlier this week that Cabinet had agreed that ministers should co-operate fully with any investigation into the deal.

"We are encouraged to see the readiness of the executive to account to Parliament," Woods said.

On Friday, Finance Minister Trevor Manuel said he was not aware of any evidence of corruption in the arms deal that would warrant the cancellation of the contracts.

In written reply to a question from Patricia de Lille (PAC) in the National Assembly, he said the allegations of corruption were viewed in a serious light by the government.

"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."

Manuel said once the matter had been adequately investigated "a decision will be taken to best safeguard the interest of the state". 

Such a decision would involve the minister of defence, and if necessary the office of the State Attorney, he said.

"Ultimately, the matter will be reported to Cabinet." 

De Lille, who has been at the forefront of the campaign to uncover alleged corruption in the deal, had asked Manuel for an assurance that the financial guarantees would be repudiated and the contracts cancelled as fraudulent, should the allegations prove correct. - Sapa

With acknowledgement to Sapa and Independent Online.