After an intensive investigation into the arms deal, the country is still nowhere near knowing the full cost.

Auditor-General Shauket Fakie said on Thursday when tabling the investigating team's report on the arms deal in parliament, that the contract price of the arms deal was R30,3-billion in December 1999, excluding finance charges of 49 percent of that price. This contract price would rise, reflecting the weakening exchange rate. But Finance Minister Trevor Manuel said it was more complex than that.

He and the three other key ministers involved in the procurement process - Defence Minister Mosiuoa Lekota, Trade and Industry Minister Alec Erwin and Justice Minister Penuell Maduna - have restated that the arms deal will not be cancelled.

The report found there were deficiencies in the model, that included costs, which was presented to the cabinet, but it found no wrongdoing on the part of the ministers.

The four expressed relief at this, and promised to get to the bottom of the weaknesses in the model.

They also vowed to get of the bottom of the source of allegations of massive corruption, saying they came from "pawns of those that were losers in the bidding".

They lashed out in particular at former judge Willem Heath and Pan Africanist Congress MP Patricia de Lille.

Part of the investigative team's task was to determine whether the arms deal costs presented to the cabinet and the model used to arrive at them were reasonable and reliable.

The team was also supposed to look at the completeness of the model, the treatment of finance charges and the full financial and fiscal implications of the arms deal.

"It is extremely difficult. You can work out the arithmetic yourself. Part of the report actually does refer to the dollar value ($4,39-billion) and was converted at an exchange rate at that time of R6,25. And that was the value, so you can apply that and do the calculations yourself," Fakie said.

Fakie also said that the R43-billion price that was subsequently quoted from October last year had taken exchange rate fluctuations into account. But at a price of R43-billion, the exchange rate would be R9,79, which was not the prevailing exchange rate at the time.

Thursday's rate was R9,70.

Manuel was quoted in September as saying the arms deal cost would rise to R66,7-billion when finance charges of R22,9-billion were added. But on Thursday he vehemently denied saying the cost had risen to R66,7-billion.

The investigative team was satisfied, however, that the cabinet was given a "scientific and realistic" view of cost implications.

Lekota said: "In the light of the damage to our country, caused by unfounded allegations of massive corruption on the part of the government and reputable international companies, the government will institute its own investigations to ascertain the source of these allegations and the purpose they sought to achieve."

Lekota said the decision to acquire the package enjoyed the support of virtually all parties in parliament.

"Indeed, the increasing demands on the SANDF, the evolution of the situation in southern Africa, as well as the September 11th and subsequent events underline the fact that democracy, freedom and human rights require more than morality and 'miracles' to protect," he said.
The ministers base their vindication on what they called the central thrust of the report findings, that "no evidence was found of any improper or unlawful conduct" by the government.

They said individual abuse of the system was a criminal matter.

With acknowledgement to Charles Phahlane, Christelle Terreblanche, The Star and Independent Online.