But it is too early to say all is not well in the contract awarding process, says Ngcuka. 

THE investigation into SA's multibillionrand arms deal could be finished by July, the heads of the three agencies probing accusations of bribery, corruption and influence peddling, said yesterday.  

First results, which may include moves to prosecute wrongdoers, would be announced even earlier, national director of public prosecutions Bulelani Ngcuka said. "It seems as if some things we are investigating may end up in court with criminal prosecutions." The bank account records of 24 individuals, the account and statutory records of 68 "entities", and three audit firms' records had been requested by investigators.  

Pressed to say whether the possibility of prosecutions meant the award process was flawed, Ngcuka said "at this stage we are not in a position to say all is not well".  

The agency heads refused to make the names of those under investigation public after failing to win support from editors for an off-the-record briefing which would have obliged the media not to divulge the names. Auditor-General Shauket Fakie said it was policy "neither to confirm nor deny whether someone is being investigated". Publicity around the investigation of a car in the possession of African National Congress chief whip Tony Yengeni had undermined the investigation. "After publication of that story some witnesses refused to co-operate."  

A number of accusations appeared to point towards unethical, rather than criminal, behaviour, Fakie said. Three categories had been identified for investigation, including the decision-making process, allegations of conflicts of interest and taking bribes.  

Asked if investigators had engaged their counterparts in countries of origin of the arms contractors, Ngcuka smiled, but remained silent. Fakie said it was a consideration "in the back of our minds".  

Fakie said it was important for investigators to have a thorough grasp of the procurement process, "because only then will we be able to see whether there is a connection between a particular bribe or conflict of interest and influence on the tender decisions". So far, "the investigation is not showing that link".  

Ngcuka, Fakie and public protector Selby Baqwa said they would hold public hearings as part of the investigative process. These would take place only once the forensic investigations were completed and criminal cases were excluded. "We do not want to warn those under investigation, nor do we want to give lawyers an opportunity to wriggle out of later prosecutions because their clients appeared in the hearings," Ngcuka said.  

In-camera hearings would protect the identities of witnesses, whistle-blowers and informants and "stop them going underground before we have finished interviewing them", Fakie said.  

Ngcuka said another major issue for the hearings could be government's affordability calculations on the package.  

Investigators were "grappling with how to deal with the need to protect defence and commercial secrets". On the other hand, it would be important to ensure public credibility surrounding the process.  

With acknowledgement to Stephen Laufer and Business Day.