Scorpions also investigating criminal activity

Cape Town - Defence Minister Mosioua Lekota is considering disciplinary action against defence force chief of acquisitions Chippy Shaik on the grounds his actions were a conflict of interest with the arms acquisition package.

The elite Scorpions unit is also investigating his possible involvement in criminal activity.

Lekota, who initially saw no need for action against Shaik after the report of the arms investigation was tabled in Parliament, is expected to make an announcement of possible action against Shaik in the next few days.

Shaik's conflict of interest arose from his participation in the committee which considered tenders for a combat suite for the corvettes. The winning bidder was African Defence Systems, owned by the European firm Thomson-CSF. His brother, Shabir Shaik, arrested on Friday for alleged possession of confidential cabinet committee minutes, was a director of both companies.

The report by the three investigating agencies the auditor general, public protector and national directorate of public prosecutions found Shaik's recusal from meetings to discuss the combat suite "was no recusal at all" as he continued to participate.

Lekota's spokesman, Sam Mhkwanazi, said Lekota would examine the public service regulations, the law and rights of the individual before making a decision. He emphasised that the conflict of interest matter was unrelated to Shabir Shaik's alleged possession of confidential documents. It has not been proved who he got the documents from, spokesman of the national directorate of prosecutions Sipho Ngwema said.

Chippy Shaik was secretary of the cabinet subcommittee, the minutes of which were discovered by the Scorpions during a raid on Shabir Shaik's Durban home. Shabir Shaik has been charged with theft of the documents, which included the committee's discussion of specifications for aircraft and ships that government planned to buy and a letter from Chippy Shaik to defence secretary January Masilela outlining irregularities in the granting of some contracts.

Chippy Shaik said he was unaware of any possible disciplinary action. He would not comment on the findings of the arms report or on his brother's arrest, saying the matter was "sub judice". He first wanted to find out what documents his brother had in order to understand the issues. He and his lawyer might issue a statement on the report's allegations.

Democratic Alliance (DA) public accounts spokeswoman Raenette Taljaard questioned the arrest of only one of the brothers when it was clear Chippy Shaik "acted as conduit for many benefits which his brother was able to channel into his own business interests".

President Thabo Mbeki, in his weekly ANC Today news bulletin on the ANC website, criticised those who persisted in claiming corruption by government. He said that what lay behind the accusations was "the racist conviction that Africans, who now govern our country, are naturally prone to corruption, venality and mismanagement. It is therefore not very difficult to propagate the absolute falsehood and gross insult that our government is, necessarily and obviously, guilty of corruption with regard to the defence acquisition."

DA leader Tony Leon said it was "vintage Mbeki to question his critics' motives, to duck responsibility and to avoid dealing with the merits of issues".

With acknowledgement to Linda Ensor and Business Day.