ARMSCOR bosses are set to make a killing by buying arms from companies of which they are shareholders or directors. 

This week the Mail & Guardian obtained Armscor documents showing that Armscor chair Ron Haywood is a director of another company, Dynamic Cables, which is among the front-runners to supply key components for the controversial Ground Based Air Defence System that is to be acquired for the South African army. Armscor is the government’s arms procurement agency while, in this instance, Dynamic Cables would be a supplier to Armscor. 

The acquisition of the air defence system, dubbed GBADS, does not form part of the controversial composite R50bn arms deal. It will cost the taxpayer several billion rands more over roughly 20 years. 

The winning tender for the GBADS contract will be announced at the end of next month. But the documents show that Dynamic Cables, which is bidding together with Log-Tek, a Durban-based company, is among the favourites to win. 

The GBADS system comprises a network of electronically operated guns and short- and long-range missiles. The network is to be connected by sophisticated communications channels - which is where Dynamic Cables comes in under the Log-Tek bid. 

Keith Mokoape, a former head of intelligence in the African National Congress’s military wing, Umkhonto weSizwe, is in the same position as Haywood. He, too, is a director both of Armscor and Dynamic Cables. 

Although Dynamic Cables will benefit from any award of the contract to it, it is unknown whether Haywood holds shares in the company and thus stands to benefit personally, as he failed to answer inquiries from the M&G. It is understood that Mokoape holds no shares in Dynamic Cables. 

A search of the records of the Registrar of Companies shows Dynamic Cables has among its directors former defence minister Joe Modise, Haywood, Mokoape, director of Log-Tek Harry Spain, former ANC treasurer in KwaZulu-Natal Diliza Mji and Ian Deetlefs, a director of Denel and a South African defence force general. 

Dynamic Cables and Log-Tek are private companies and are not owned by the state or Armscor. Armscor bosses on the boards of Dynamic Cables and Log-Tek are acting for the companies in their private capacities - not on behalf of the state or Armscor. 

Attempts to contact Haywood for comment were unsuccessful. Mokoape denied a conflict of interest in his being a director of Armscor, Log-Tek and Dynamic Cables 

With acknowledgment to Paul Kirk and the Mail and Guardian.