Criminal investigations into irregularities in the multi-billion arms procurement deal have seen the Scorpions investigators raiding premises in South Africa, France and Mauritius in a bid to obtain documentary evidence.  

Raids were conducted on a number of companies and the homes of company directors who allegedly benefited from lucrative deal, spokesman for the National Directorate of Public Prosecutions (NDPP) Sipho Ngwema said.

The investigations involve contractors including African Defence  Systems (ADS), Futuristic Business Solutions (FBS) and Thales International.

The raids come a week after African National Congress (ANC) chief whip Tony Yengeni was arrested by the Scorpions on charges of corruption, fraud, forgery and statutory perjury in connection with the controversial arms procurement deal of over R43-billion.

Raids were performed on the various business premises of Nkobi Holdings in Durban, the residence of Nkobi chief executive and chairman Schabir Shaik, the offices of his attorney's Ditz Incorporated and the residence of Nkobi financial director Colin Isaacs.

The Nkobi group of companies own shares in Thales International, the company that will be providing systems for the navy's four new corvettes.

These companies jointly own ADS, which is at the centre of the arms deal.

Schabir Shaik is a director of both ADS and its French parent, Thales International, and he was financial adviser to Deputy President Jacob Zuma when Zuma was in the KwaZulu-Natal legislature.

He is also the brother of Shamin "Chippy" Shaik, who heads the national defence department's acquisitions and procurement division.

Nkobi Holdings, a black empowerment company, was named after the late Thomas Nkobi, former ANC treasurer general.

Simultaneously Scorpion detectives, accompanied by authorities in France, raided the business premises of Thales International and  several residences of Thales International Africa chief executive Jean-Paul Perrier.

Thales International Africa is the holding company for Thomson-CSF Holdings (SA).

Residences belonging to Alain Thetard, managing director of Thomson-CSF Holdings (SA) both in France and Mauritius were also raided.

In Mauritius investigators searched the offices of Thales International Africa and the offices of Valmet Mauritius, the registered address for Thales International Africa.

Tuesday's raids started shortly after 1pm when investigators were seen entering the offices of Nkobi Holdings on Victoria Embankment in Durban with dozens of empty boxes.

Ngwema said it was possible that there could be more raids as investigators gather evidence.

An audit of how many places had been raided and what had been confiscated would be made available on Wednesday.

Neither the Nkobi group nor its lawyers, Ditz Incorporated, were available for comment.

A Durban judge granted the search warrants to the Scorpions on the basis that there was reasonable grounds to believe that evidence pertaining to the investigation was on the premises.

"These documents, which were reasonably suspected to have been in or on the premises, are linked to suspected offences emanating from the investigations," a statement released by the NDPP's office
said.
 
The raids formed part of a criminal probe by the NDPP and were not linked to the forensic investigation being conducted by the Auditor-General.

Ngwema did not comment on the possibility of arrests and only said: "We are still investigating."

The defence procurement programme involves contracts for the acquisition of four corvettes and three submarines from companies in Germany, 30 light utility helicopters from Agusta in Italy, 12 Hawk lead-in fighter trainers from Britain and nine rms advanced light fighter aircraft from Sweden.

A further 12 Hawks and 19 Gripen would be bought later as part of the programme.

The deal was signed by former defence minister Joe Modise, whose son-in-law Tsepo Molai, and a former Umkhonto we Sizwe comrade, Lieutenant-General Lambert Moloi, were directors of Futuristic Business Solutions.

There were allegations that he asked certain competitors for arms contracts, such as Bell Helicopters to enter into a partnership with FBS in order to be considered for the contracts.

The government in September 1999 announced it expected the programme to generate investment worth R104-billion and create 65000 jobs.

The possibility of irregularities in the deal came to light last year when Pan Africanist Congress MP Patricia de Lille claimed that she received evidence in this regard.

Subsequent investigations by the Auditor-General identified several problems with some of these contracts.

With acknowledgment to Sapa and Business Day.