Publication: Business Day Issued: Date: 2001-07-17 Reporter: Sapa Editor:

Lekota to Testify in Arms Hearings


Publication  Business Day
Date 2001-07-17
Reporter Sapa
Web Link www.bday.co.za

 

Defence Minister Mosiuoa Lekota is to testify in the public hearings into SA's multi-billion rand arms deal on Tuesday.

He will be the second Cabinet member to appear before the panel investigating allegations of wrongdoing in the arms procurement package.

Trade and Industry Minister Alec Erwin told the panel last month that no individual, including MPs, could have swayed the awarding of contracts.

Lekota is expected to shed light on the political decision-making processes in the deal.

The proceedings resumed on Monday after a break to give forensic experts time for further investigations.

Former Finance official Roland White testified on Monday in a pre-recorded video conference between Pretoria and Washington that favourable loans saved taxpayers millions of rands in the procurement of the arms package.

But he conceded that more research should probably have been done on formulae to predict possible escalations in the cost of the deal.

Cost estimates for the procurement package have risen from R30.3-billion in 1999 to R43-billion last year, mainly because of exchange rate fluctuations.

This has sparked criticism that the government has misled the public on the actual price tag of the new defence equipment.

The deal provides for South Africa to acquire four corvettes, three submarines, 30 light utility helicopters, 24 Hawk lead-in fighter trainers and 28 Gripen advanced light fighter aircraft over the next few years.  

With acknowledgement to Sapa and Business Day.