The outcome of the probe into South Africa's arms deal could prompt a large lawsuit against the state, a private defence contractor said on Wednesday.

Richard Young confirmed that he had considered suing the state for between R100-million and R200-million over alleged irregularities in the procurement of the defence package.

Asked on Wednesday at the Pretoria hearings into the arms deal whether he still intended going to court, Young said: "That will depend on the outcome of this investigation."

Young is managing director of Communications Computer Intelligence Integration Systems (CCII), a Cape Town-based information technology company.

Those implicated had a right to testify again

He contends there were irregularities in the awarding of a R40-million tender for information management systems used in the four corvettes that South Africa bought under the arms package.

CCII was named the preferred supplier of these systems, Young claims. The tender was, however, awarded to French company Detexis.

Detexis is the sister company of African Defence Systems (ADS), of which arms acquisition head Chippy Shaik's brother, Schabir, is a director.

Young on Wednesday confirmed he told a newspaper in January he would seek legal remedy for his alleged loss if the matter was not probed by the Special Investigating Unit, at the time headed by Willem Heath.

During cross-examination Martin Kriegler, for ADS, said: "Eight months have gone by and you still haven't gone to court."

Young replied he had postponed the matter when the probe was referred to three state investigating agencies.

The chairperson of the panel, Public Protector Selby Baqwa, agreed that those implicated had a right to testify again.

The hearing continues.  

With acknowledgment to Sapa and The Star.