In a country where cynicism about politicians is automatic, the performance of the parliamentary public account committee this week was a wonderful antidote. 

The grilling that its members gave defence department officials over the government's arms procurement programme (price tag up R14 billion and counting) was in the best traditions of parliamentary oversight. Notable, too, was the fact that members united across party lines to ask tough questions - with ANC MPs leading the attack. The priority of "public interest" - which was evident in the committee's approach - needs to gain greater currency in this country's public life.

ANC MPs Tear into Generals Over Arms Deal

The job creation benefits of rearming the country appear to have been exaggerated reports John Matisonn.

The spiralling cost of the "R30 billion arms deal" and new questions over the propriety of the dealmakers may be probed by several groups of high-powered investigators beyond Auditor-General Shauket Fakie's original request for a forensic audit. Parliament's public accounts committee has demanded numerous documents be delivered to it by Tuesday, so the watchdog committee can decide on the scale of the likely investigation and what agencies should be involved.

Several members of the public have called the committee with new information since Wednesday's hearing. The biggest surprise emerged in the public accounts committee meeting when the figure that the government would have to spend turned out to be at least 50% higher than R30 billion, and the guarantees for the expected return in the form of industrial benefits were pegged at only R3 billion.

When the deal was announced last year, the figure for "offset" industrial activity was given as R110 billion, creating an estimated 65 000 new jobs. Negotiators argued this week that it was normal to only guarantee that five to 10% of the arms deal would come back in offset benefits. But they said the international embarrassment of suppliers if they did not meet the other offsets was an added protection.

During the hearing, the government's chief negotiator for the acquisitions, Jayendra Naidoo, surprised MPs when he said that the "offset" benefits should be understood as a method of managing risks of such a large arms deal, and not as a growth exercise. "the idea that industrial participation is a development path is a highly questionable proposition," Naidoo said.

"It is an exercise to obtain a neutral impact, rather than a generator of an economic boom." This was in stark contrast to previous claims by the Department of Trade and Industry that the deal would "kick-start" industrial development. The committee was told that the cost of the deal was now R43.8 billion if inflation and exchange rate changes were included. In the light of the falls in the rand this week, even that figure may now be conservative.

It does not include finance charges, which are likely to add billions more to the cost during the 12-year life of the acquisition programme. ANC MPs took the lead in questioning generals, admirals and government negotiators about whether the cabinet had been fully informed. Gavin Woods, chairman of the public accounts committee, said yesterday he was contemplating a proposal that the contracts be investigated by the Auditor-General, together with other bodies that might include the Heath Special Investigating Unit, the Public Protector, the Office for Serious Economic Offences "and others".

With acknowledgement to John Matisonn and the Sunday Tribune.