United Democratic Movement leader Bantu Holomisa on Friday called for Auditor-General Shauket Fakie's resignation in the wake of media reports that the executive was given power to influence the arms deal investigation.

Following revelations last week that cabinet had influenced the drafting of the preliminary and final arms reports, the UDM was "shocked to learn of new allegations that the investigation itself was indeed managed by cabinet", Holomisa said in a statement.

Last week, the Mail & Guardian reported that the executive invoked sections of the Special Defence Account Act to give government the chance to vet both the auditor-general's September 2000 preliminary report and the joint investigative team's report tabled in Parliament earlier this month.

The Act gave the executive the power to censor the report for reasons of "national interest".

Fakie has denied that "substantial" amendments resulted.

Friday's M&G reported, however, that the executive arm of government, from the start, placed itself in a position to influence the course of the investigation itself.

This included the establishment of an "audit steering committee" which included, among others, recently suspended defence department procurement chief Chippy Shaik.

The existence of this "steering committee" raises serious questions about the extent to which Fakie's September 2000 report and this month's final report were "steered", the M&G article said.

Holomisa said the fact that people suspected of wrongdoing, such as Chippy Shaik and trade and industry department arms deal negotiator Vanan Pillay, reportedly served on the committee, brought the whole investigation into disrepute.

"The minutes of the first meeting of this 'steering committee' reportedly contain the statement by the auditor-general that Shaik is thanked for laying 'a solid foundation' for the investigation with his own inputs.

"Is it any wonder that the investigators (auditor-general, public protector, and national director of public prosecutions) refused to answer our questions regarding their terms of reference?"

Instead, the terms of reference appeared to have been determined by Cabinet through this "steering committee", Holomisa said.

"If this is the case, the Parliament of this country has been misled.

"The rightful parliamentary representatives of the people of South Africa have been consistently sidelined and undermined in their quest to investigate this arms deal.

"The UDM calls upon Parliament to treat this latest arms report as an interim report, and that a judicial commission of inquiry must be established to immediately investigate these matters.
"The auditor-general must resign if media reports regarding this 'steering committee' are confirmed," Holomisa said.

A publicist for Fakie said on Friday he was on official business in Europe and could not be immediately reached for comment. He is expected back in the country on Monday.

With acknowledgement to Sapa and Independent Online.