The Democratic Alliance has called for a full investigation into former defence minister Joe Modise's interests in companies linked to the controversial multi-billion rand arms deal.

This followed a newspaper report that Modise heads a company, Khutele Projects, which has been contracted to work on the Coega industrial development zone (IDZ) in the Eastern Cape.

The project is tied to the R4,5-billion submarine purchase that is part of the arms package.

Raenette Taljaard, the DA spokesperson on public accounts, said this showed "yet another conflict of interest" involving Modise.

"Coega has consistently been more of a mirage than a reality as it stumbles from crisis to crisis," she said.

"The fact that Modise's hurried submarine contract always formed the basis of the renewed interest in the Coega project has always been its key weakness.

"Now it is apparent that his personal gain might have obscured his professional judgement."

The Sunday Independent reported that Khutele had been appointed to conduct an integrated transport study for the Coega IDZ.

Taljaard said Khutele's involvement should be probed by the team investigating claims of corruption in the arms acquisition programme.

"It is tragic that the taxpayer has to foot the bill for the extravagant arms deal," she added.  

With acknowledgement to Sapa and The Star.