Members of the parliamentary committee which this week launched a hearing into the arms deal - whose costs are now projected to reach R60 billion - have been receiving threatening phone calls.

The chairman of the public accounts committee, Gavin Woods, said this week that after its harsh interrogation of Department of Defence officials on Wednesday, the committee had attracted a flood of new informants as well as a good deal of "heat".

Woods said he had received new information from many different sources. He said he had also been threatened by an anonymous caller and had been given several "friendly warnings" to tread cautiously as powerful interests were threatened by the hearing.

There is an incredible amount of heat - the interest is very intense. We have been getting calls telling us to watch our backs. "We realise we are holding a hot potato," said Woods. He said "a good number" of other sources had come forward since the hearing. "Lots of names, companies and structures have been named with different levels of plausibility. We will consider it over the next few weeks," said Woods.

While the committee has not yet decided on its course of action, there are indications that it could go for a major inquiry - drawing together Woods's committee, the Auditor-General, the Public Protector, the Heath Special Investigating Unit and the Office for Serious Economic Offences, all of which intend to investigate aspects of the deal.

The hearing was sparked by the Auditor-General's report on the arms deal, published two weeks ago, which found that there had been material deviations from acceptable procedures and that the cheapest package had not been taken. It recommended a full forensic audit.

With acknowledgement to Carol Paton and the Sunday Times.