Publication: iafrica.com Issued: Date: 2001-10-11 Reporter: John Makoni and Sapa Editor:

No Corruption in Arms Deal - Govt

 

Publication  iafrica.com
Date 2001-10-11
Reporter John Makoni and Sapa
Web Link www.iafrica.com

 

 

Cabinet has said that the government remained confident in the arms acquisition process' primary contracting process.

In a statement released after its fortnightly meeting, Cabinet said it noted the actions by law enforcement agencies regarding the arms procurement process. Recent events include raids on companies and houses in three countries by the Scorpions; the arrest of Tony Yengeni, who has since resigned as ANC chief whip; and the court appearance and subsequent R10 000 bail granted to Michael Woerfel, former managing director of the European Aeronautic Defence and Space Company (EADS) — a company with a stake in the arms deal.

The charges against Yengeni and Woerfel relate to a large discount which Yengeni allegedly received through Woerfel for a luxury 4x4 in exchange for an undertaking to "use his power or exercise hisinfluence to influence the arms acquisition process" in favour of EADS' predecessor, Daimler-Benz Aerospace AG or DaimlerChryslerAerospace AG.

In its statement, Cabinet reiterated that law enforcement agencies should carry out their functions "without fear or favour", and that the accused should be presumed innocent until proven guilty.

"Government remains confident that the primary contracting process, which was its main function, was watertight enough to obviate possibilities of corruption", the statement said, adding: "It will respond appropriately to the report of the investigation agencies when it is released."

Meanwhile in Parliament, Finance Minister Trevor Manuel refused to reveal details of a memorandum submitted to the department by former Treasury official Roland White on the affordability of the multi-billion rand arms deal.

Replying to questions in the National Assembly yesterday, he described attempts by the Democratic Alliance to force him to disclose the contents of the memorandum as "unseemly".

DA MP Raenette Taljaard had asked Manuel whether issues raised by White, apparently questioning the affordability of the deal, had been discussed in Cabinet, and whether he would make a statement on the matter.

Manuel has previously said that the cost of the deal is now projected at R66-billion, up from R43-billion. At the time the deal was announced, its cost was put at R30-billion. 

With acknowledgement to John Makoni, Sapa and iafrica.com.