Auditor-General Shauket Fakie has recommended a forensic audit of processes in the R30-billion arms  acquisition package deal after saying there were material deviations from generally accepted practices in the deal.

Meanwhile, Pan Africanist Congress chief whip Patricia de Lille has called on Judge Willem Heath's anti-corruption unit to investigate allegations about corruption and nepotism in the multibillion-rand deal.

Fakie said in his special report released on Wednesday that an audit of the arms procurement package had shown that in the prime contracts there were "material deviations from generally accepted procurement practice".

The explanation from the defence department on these irregularities "does not appear to be satisfactory", the report said.

'Aspects of independence could have been addressed more significantly' After the many allegations about corruption in the awarding of subcontracts, Fakie recommended that "a forensic audit of or a special investigation into these areas be initiated".

The government last year signed contracts worth more than R30,3-billion to buy new defence equipment, including jet fighters and submarines. 

Industrial offsets in the package deal were estimated at about R104-billion, which would create more than 65 000 jobs.

All bidders with whom contracts had been finalised had to sign performance guarantees regarding the offsets, which were on average 10 percent of the contract price.

Fakie said he was of the opinion that guarantees, in case of non-performance, may be inadequate to ensure delivery of the offset commitments and could undermine one of the major objectives of the package - the counter-trade element.

"I am of the opinion that the aspects of independence, fairness and impartiality could have been addressed more significantly" Fakie also argued.

According to recent press reports, companies with links to Chippy Shaik, head of arms acquisitions in the Department of Defence, had received substantial contracts in the arms deal. He has denied being involved in any irregularities.

De Lille said Shaik should be investigated, as should former defence minister Joe Modise, who was also alleged to have become involved in companies linked to the arms deal soon after resigning as minister. Modise has refused to comment on the allegations.

De Lille, who was instrumental in first making allegations about corruption in the arms deal public, said in a statement on Wednesday that allegations and evidence of corruption were forwarded to the Heath unit last year.

The Heath unit "acknowledged the gravity and sensitivity of the allegations" but suspended investigations pending the auditor-general's report.

The unit should "now apply to the president for a presidential proclamation for an official investigation", De Lille said. - Parliamentary Bureau

With acknowledgement to Andre Koopman and the Star.