Paul Kirk has flouted every principle of journalism in his article "From arms broker to arms boss" (February 1). But you have to hand it to him. When things were slow in Durban last week he didn't come away empty handed -  not a chance. He dredged up an old Sunday Independent article of October 6, changed dates, created a fictionalised fortune and transformed it into a lead story.

To ensure my comments posed no threat to his version, he faxed the non-contentious questions to my office at lunchtime on Thursday January 31 and two hours later, when the reply arrived, disingenuously claimed that the deadline had passed

Contrary to Kirk's breathless allegations I did not acquire a stake in arms supplier Tellumat at any time in 1999 during my "year-plus as arms negotiator" nor have I made a "small fortune" from contracts arising out of the arms deals.

These are the facts, which were available to Mr Kirk had he taken the trouble to check them. Everything can be substantiated with written proof, if required:

1. Kirk alleges: "While Jayendra Naidoo was tasked with finding the best deals for the country, he was closely associated with an arms subcontractor." Kirk alleges: "While Naidoo was tasked with the negotiations, he also had a close association with - and acquired a stake in electronics giant Tellumat, which scored contracts worth hundreds of millions in the arms deal." Kirk declares: "During his year-plus as arms negotiator, J&J (Pty) Ltd, the holding company founded by Naidoo and former communications minister Jay Naidoo, bought a 2,5% interest in empowerment company Primgro in July 1999. The following month Primgro of which Jayendra Naidoo became a director bought a 25% interest in Tellumat."

Contrary to Kirk's reckless allegations, J&J did not exist in 1999. Jay Naidoo and I only formed J&J after my term as chief negotiator was concluded at the end of 1999. J&J (Pty) Ltd was incorporated in February 2000. Our company is a strategic management and investment company. Our core business is investing in enterprises in the technology and services sector. We do that openly and these are reflected in our audited accounts and share register. During May 2000 J&J took an option on Primgro shares, leading to a purchase of 2,5% of Primgro's shares in April 2001. We paid a premium for these shares relative to that paid by the founders. There was absolutely no overlap between my time as government's negotiator and my relationship with Primgro. Primgro is a totally separate investment company from J&J. It owns shares in several companies, and bought a 25% share in Tellumat at fair value funded by some of the most prominent investment banks in the country in October 1999. This was before we formed J&J or met Primgro.

2. Kirk further states: "In December 1998, the same month Naidoo started as chief negotiator, he was also appointed chairperson of Plessey South Africa, predecessor to Tellumat. (Most of Plessey's divisions were hived off into Tellumat in early 1999)". By implication, he suggests my participation in Plessey created a conflict of interest.

Contrary to what Kirk alleges, Tellumat had been split off into a completely separate company and sold to management in October 1998. As a member of the Board of Worldwide I was appointed non-executive chairman of Plessey from the end of 1998 until the end of 1999.The company had become a purely telecom system integrator owned by Dimension Data and Worldwide Africa Holdings. Plessey had no involvement in any defence contracts. My involvement in Plessey (which involved zero shareholding) was fully disclosed to the government.

3. Kirk argues that "documentary evidence points to Naidoo's likely knowledge" that Tellumat was bidding for defence contracts. Kirk insinuates that I acted improperly.

Although I have already clarified that I had no relationship with Tellumat, I must point out, in any event, that the negotiation team dealt with matters relating to the main contracts and was never involved in matters concerning sub-contractors.

4. Kirk further asserts that: "Jayendra, the government's chief negotiator in the R66-billion arms deal, is set to make a small fortune out of the very contracts he brokered on behalf of the taxpayer."

According to Primgro, defence-related revenues are projected to provide 3,5% of Tellumat's total turnover over three years. At current values, this could be worth about R750 000 to Primgro (after taking into account financing costs for their purchase of Tellumat shares). Considering that J&J holds 2,5% of Primgro, this could in turn be worth about R18 750 to J&J, (and through my 37,5% of J&J, worth R7 031,25 to me). To say the least, neither the J&J shareholders nor myself are holding our breath awaiting these returns. Regardless of the size of this "fortune", this investment was made after I left my position as chief negotiator for the government and on normal commercial terms.

I can also disclose that over the past two years I have bought a Volvo, travelled on Lufthansa, visited London and eaten pizza, without any illicit benefits from anyone.

The media carries the responsibility to be fair-minded. In the light of this I hope that the M&G will be big enough to give this reply as much prominence as Kirk's article was given. I further suggest that Kirk should become, at least, on nodding terms with the truth.

With acknowledgements to Jayendra Naidoo and Mail & Guardian.