CAPE TOWN  The multi-agency probe of allegations of corruption in the R43bn arms deal was expected to come up with recommendations on how the behaviour of international companies bidding for contracts should be defined and prescribed, Defence Minister Mosiuoa Lekota said yesterday.

Lekota was speaking at a news briefing for the parliamentary press gallery when, in reply to a question about the apparent widespread use of luxury cars as inducements by foreign arms companies, he said that when the investigation into the deal was finally over, there would be important lessons for the country.

The SA National Defence Force was further embroiled in the alleged scandal last week when allegations were made that SANDF chief Gen Siphiwe Nyanda had received two luxury cars at preferential prices from a company which stood to benefit in the arms deal.

The European Aeronautic Defence and Space Company (EADS), which was a major bidder for substantial parts of the strategic arms package, has acknowledged that about 30 cars were arranged for officials and politicians and has reportedly given details to the investigating team. EADS was reported to have supplied the cars to Nyanda.

EADS holds shares in two companies that tendered successful bids for aspects of the arms deal worth about R400m.

The SANDF has said that Nyanda's acquisition of the cars was entirely legitimate.

Lekota would not be drawn on the issue of Nyanda and how he acquired his cars. He said cars being given to South Africans involved or close to the arms deal was part of the investigation and "the probe will establish who acted appropriately and who acted inappropriately".

He said that some individuals might have acceptable explanations for how they acquired their cars and he did not know who those individuals could be.

A key aspect would be the role of citizens and multinational companies from other countries when bidding for SA contracts. "I would expect the relevant agencies to make recommendations to government on how to define and prescribe the behaviour of international participants in projects of this nature."

Lekota said that when the defence ministry was shopping for a ministerial car, he had been offered a Mercedes Benz. After a test drive period of a week or two he returned the vehicle to DaimlerChrysler SA. The ministry bought a BMW instead, because it fell within the official funding allocation for a ministerial car.

Meanwhile, a spokeswoman for DaimlerChrysler SA said EADS was a totally different company. Lulama Chakela, said EADS was previously known as DaimlerChrysler Aerospatiale, but there had never been any connection between it and DaimlerChrysler SA. "We cannot speak on EADS's behalf. We do not have access to their documents."

With acknowledgement to Wyndham Hartley, Bonile Ngqivaza and Business Day.