Group says SA faces no military threat

CAPE TOWN Finance Minister Trevor Manuel's support for the R43bn arms deal is to be challenged in court on constitutional grounds by Economists Allied for Arms Reduction-SA, a nongovernmental group campaigning to have the deal cancelled.

A debate organised by opposition MPs on the need for government to reprioritise spending on human security rather than arms will take place in Parliament today. Pan Africanist Congress MP Patricia de Lille will give a progress report on the PAC's planned legal action based on constitutional grounds.

The activist group's spokesman, Terry Crawford-Browne, said legal counsel advised that a case against Manuel, likely to be instituted next month in the Cape High Court, was "very strong". He said funding for the proposed legal action was largely in place. His group was seeking backing from NGOs and other civil society organisations for the lawsuit.

Crawford-Browne said the group would contend that the arms programme was constitutionally unlawful because it was strategically, economically and financially irrational, and limited delivery on socioeconomic rights outlined in the bill of rights of the constitution. SA did not need to buy such arms as it did not face a military threat.

"The department of finance affordability team' in August 1999 warned the cabinet that the foreign exchange and other risks of the acquisition programme would lead to mounting economic, fiscal and financial difficulties'. Despite such warnings, the finance minister in January 2000 recklessly signed foreign loan agreements and guarantees in respect of the acquisition programme," said Crawford-Browne.

The objective of the legal challenge was for the court to declare the loan agreements and guarantees null and avoid, precipitating the cancellation of the entire arms package.

The case would rest on precedents set by the Constitutional Court that it was not sufficient for government to act in good faith as it also had to act in an objectively rational manner to satisfy constitutional requirements. Cases cited included one brought by the Pharmaceutical Manufacturers' Association and the Grootboom case on provision of housing for the homeless.

Manuel has consistently defended the cabinet decision to proceed with the arms package, saying it was made after a thorough consideration of all the financial implications and costings which he presented to cabinet. He has expressed confidence that the costings were fair and correct, and said cost escalation was taken into account when the decision was made.

Raenette Taljaard, Democratic Alliance spokeswoman on public accounts, said the DA was still considering whether to support the legal action. At today's hearing she will focus on offsets and corruption, raising concern about firms participating in projects of the British Aerospace contract. Speakers will include Gavin Woods, chairman of Parliament's standing committee on public accounts.  

With acknowledgment to Linda Ensor and Business Day.