Publication: The Star Issued: Date: 2001-07-02 Reporter: Marvin Meintjies and Moshoeshoe Monare Editor:

German Investigators Join Car Deals Probe


Publication  The Star
Date 2001-07-02
Reporter Marvin Meintjies and Moshoeshoe Monare 
Web Link www.iol.co.za

 

Investigators in Munich, Germany, have begun to probe the conduct of the European Aeronautic Defence and Space Company (EADS) - the company at the heart of multibillion-rand arms deal and alleged kickbacks.

In South Africa, the Scorpions have already questioned Michael Woerfel, managing director of EADS, in connection with the car deals the company concluded with VIPs, among them Tony Yengeni, ex-chairperson of parliament's joint standing committee on defence.

 

On Monday, The Star published a list of 33 cars that VIPs in defence and related industries, diplomatic and political circles acquired at discounted rates through EADS.

 

Bribery of foreign officials or politicians a criminal offence

EADS, the result of the amalgamation of DaimlerChrysler Aerospace, Aerospatiale Matra of France and Construcciones Aeronauticas of Spain, benefited from the arms deal through subcontracts, awarded to companies it has a stake in, for radar systems for the navy's new corvettes.

The acting chief prosecutor of Munich, Manfred Wick, who had earlier stated that a full investigation would begin only once an "initial suspicion is affirmed", confirmed on Monday that a probe was now under way.

Germany is a signatory to an agreement, by several industrialised nations, to make bribery of foreign officials or politicians a criminal offence.

Following the publication of the list, former Gauteng premier Tokyo Sexwale's family issued a statement confirming that he personally received a Chrysler Voyager from Daimler-Chrysler South Africa (DCSA) through DaimlerChrysler Aerospace for R248 000 with a 12,23 percent discount.

Sexwale telephoned The Star to personally express his full support for journalism that sought to leave no stone unturned regarding the arms deal.

DaimlerChrysler, EADS are separate companies

In the statement, issued by family spokesperson Marcus Steyn, the Sexwale family said: "A Chrysler Voyager was purchased and fully paid for through our bank. We dealt with DaimlerChrysler, and Mr Sexwale personally collected the vehicle from DaimlerChrysler head office in the presence of Mr Chris Kopke, the chairperson of the management board of DaimlerChrysler (South Africa).

"The car was invoiced through DaimlerChrysler Aerospace, a sister company of DaimlerChrysler, and was duly paid upon presentation minus the cash discount. This discount is something to which we were entitled, and would have insisted upon.

"We are aware DaimlerChrysler Aerospace has now been absorbed into EADS. At no stage did we have any dealings with EADS."

Also on the list was Zoli Kunene, Grintek Avitronics' chairperson. Grintek was awarded a subcontract for electronic systems for the corvettes, submarines and Gripen fighter aircraft.

"EADS has nothing to do with this contract," Kunene said. He said that four years ago Grintek Avitronics developed radios with what was then Siemens Defence - a company sold to DaimlerChrysler Aerospace.

The department of trade and industry said it had launched a preliminary investigation to determine whether Vanan Pillay, the former director of its national industrial participation programme, made a full disclosure on how he acquired a Mercedes-Benz through EADS.

DCSA emphasised that DaimlerChrysler and EADS are separate companies worldwide.

Yengeni bought a ML320 at a 47,83 percent discount, paying only R182 000 (retail price R349 000) and a C180 at R185 000, a 4,76 percent discount, through EADS.

  

With acknowledgement to Marvin Meintjies, Moshoeshoe Monare and The Star.