Judge Willem Heath's anti-corruption unit should apply for a presidential proclamation to officially investigate allegations of corruption in South Africa's R30-billion arms deal, Pan Africanist Congress MP Patricia de Lille said.

Reacting to Wednesday's tabling of a special report by Auditor-General Shauket Fakie, she said the audit had identified procedural problems which provided, at first sight, evidence of irregularities.

Fakie said his audit into the prime contracts of the arms head had revealed material deviations from generally accepted practices.

"The explanation provided by the department of defence for this material deviation does not appear to be satisfactory," he said.

'All people identified in having flouted procedures must also be investigated' Fakie also expressed concern that the countertrade aspect of the deal might be undermined by inadequate guarantees.

He also recommended a special forensic audit into the subcontracts which fell out of the original terms of reference of his investigation, and have been the subject of repeated corruption claims.

De Lille said former defence minister Joe Modise should be called to account by parliament to explain the alleged conflicts of interest that had occurred in the allocation of these contracts during his tenure.

"All people identified in having flouted procedures must also be investigated, and forensic audits should be undertaken of their bank accounts and assets."

The head of acquisition in the department of defence, Chippy Shaik, should also be investigated, she said.

'The Heath unit acknowledged the gravity of the allegations' According to recent newspaper reports, companies with close links to Shaik had been awarded the lion's share of local contracts in the arms deal.

The national assembly's defence committee chair Thandi Modise is on record as saying there is no basis for the allegations.

De Lille said she had forwarded allegation and evidence of corruption to Heath in November last year.

"The Heath unit acknowledged the gravity and sensitivity of the allegations. It is now September 2000. Judge Heath suspended his investigation pending the Auditor-General's report.

"He should apply to the president for a proclamation for an official investigation."

De Lille said the allegations were wide ranging and indicated attempts at massive self-enrichment by certain people and their political associates. - Sapa

With acknowledgement to Sapa and Independent Online.