Publication: Business Day Issued: Date: 2001-07-13 Reporter: Sapa Editor:

Ruiters still Considering Arms Probe Findings


Publication  Business Day
Date 2001-07-13
Reporter Sapa
Web Link www.bday.co.za

 

TRADE and industry department director-general Alistair Ruiters is still considering the findings of an internal probe into the conduct of an official involved in the country's controversial multibillion-rand defence deal.

Government has given a public assurance that it will deal with the matter expeditiously to prevent people losing faith in the process, and further delays may be interpreted negatively.

A trade and industry department spokeswoman said yesterday Ruiters would discuss the matter with Trade and Industry Minister Alec Erwin before making any announcements on what steps would be taken.

The official, Vanan Pillay, was found guilty of contravening a government code of conduct by failing to disclose a R55000 discount he received on a MercedesBenz purchased through the European Aeronautic Defence and Space Company (EADS).

EADS, a beneficiary of the defence procurement process, suspended MD Michael Woerfel earlier this month in connection with the discount deals.

Until then it had played down the growing controversy around the provision of the vehicles to about 30 VIPs, including Pillay, SA National Defence Force chief Gen Siphiwe Nyanda and African National Congress parliamentary chief whip Tony Yengeni.

Until he was moved to another post earlier this year, Pillay was the director responsible for national industrial participation offsets, and played a major role in deciding which bidders offered the best counter-trade proposals.

Pillay reportedly got a discount of 29% on a Mercedes-Benz C250TD in July 1999. He paid R141000 for the vehicle.

The defence department has previously said Nyanda's two purchases were above board.

He received a 17,26% discount on the retail price of a MercedesBenz E320 AMG and a 15,11% discount on an S320. The defence department apparently bought the latter at Nyanda's request as an official vehicle paid for by a government subsidy that made up part of his salary.

With acknowledgement to Sapa and Business Day.