A senior defence official told a panel investigating a multi-billion-rand arms deal dogged by allegations of corruption on Tuesday that South Africa was unable to handle such big and complex weapons purchases.

Rear-Admiral Keg Verster, the first witness to take the stand at public hearings that opened on Monday, said that in 1997 South Africa had no policy in place to deal with more than one strategic defence contract at a time.

"We were feeling our way into a new environment. In future, we should take one project at a time," said Verster, the director of weapons systems in the South African Defence Force.

Lawyers are seeking a judicial review of Baqwa's decision

"Big projects should be staggered," he added.

The hearings before a three-man panel led by Public Protector Selby Baqwa will probe the financial and procedural details of South Africa's biggest arms transaction in seven years. The Public Protector was appointed to defend standards in public office.

The R43-billion deal, signed in 1999, involves British, French, German, Italian, South African and Swedish firms. They include Britain's BAE Systems, France's Thomson-CSF and Sweden's Saab.

The deal was supposed to generate investment worth R104-billion and create 65 000 jobs.

But allegations of bribery and corruption surfaced and a preliminary study by the auditor-general last year called for an in-depth review after finding serious flaws in procedure. The opposition has accused the government of a cover-up.

'In future, we should take one project at a time'

Baqwa told Tuesday's session of the hearings that the first part of the proceedings would deal with the background of the arms deal in order "for us to understand where the acquisition process comes from".

Critics and the opposition have slammed Baqwa for denying television stations the right to broadcast the hearings live. Baqwa said he wanted to protect witnesses and ensure the hearings run smoothly.

Lawyers for two local television stations have gone to the Pretoria High Court to seek a judicial review of Baqwa's decision.

Baqwa's office, the auditor-general and the National Directorate of Public Prosecutions are jointly probing up to 50 allegations of wrongdoing and impropriety in the arms deal at the request of parliament's public accounts committee.

Under the arms deal, South Africa will take delivery over the next few years of four naval corvettes, three submarines, 30 helicopters, 24 Hawk fighter trainers and 28 Gripen fighters.

In January, President Thabo Mbeki's ruling African National Congress demoted and silenced Andrew Feinstein, one of its own leading members, who had championed the investigation.

Mbeki also barred his top anti-graft unit from the inquiry and accused its investigators of trying to undermine his government. - Reuters  

With acknowledgement to Buchizya Mseteka, Reuters and Independent Online.