Publication: Independent Online Issued: Date: 2000-06-03 Reporter: Editor: Thami Ngidi

UK Official to Ensure Arms Deal Offsets 


Publication  Independent Online
Date 2000-06-03
Editor Thami Ngidi
Web Link www.iol.co.za


A British civil servant is to be seconded to the department of trade and industry to ensure that the offsets expected from a R32-billion arms deal to supply weapons to South Africa materialise. 

This is the outcome of one of several agreements President Thabo Mbeki secured during the British leg of his recent tour of Europe and the United States, after meeting Tony Blair, the British prime minister.

Mike Doig, a spokesperson for the British high commission, said the official would be paid by the British government. 

In terms of the R32-billion overall contract, which was signed in September, Britain's BAE Systems will supply 24 Hawk advanced jet trainer aircraft to South Africa, while Swedish manufacturer Saab, which is part-owned by BAE Systems, is to supply 28 Gripen fighter planes. 

Westland, also of Britain, is to supply four maritime helicopters to South Africa. German consortiums are to supply four corvettes and three submarines valued at R11,2-billion to the South African navy. 

Doig said: "Offset-inward investment by the defence contractor to the benefit of the country concerned in terms of job creation, industrial growth and technology transfer is a common element in most significant defence contracts. 

"The secondee will assist with existing programmes and help identify new opportunities. The British government will fund his secondment, which will last for three years." 

The agreement is in line with a declaration of intent signed by Blair and Mbeki for the two governments to work together to maximise opportunities for investment in South Africa.

At the announcement of the winning bidders last year, the government said the arms package would generate at least 65 000 jobs. The British part of the arms deal is the largest, but sceptics have said they doubt whether the promised offsets will become a reality. 

Terry Crawford-Browne, the co-ordinator of the organisation Economists Allied Against Arms, said offsets were never meant to benefit the purchasing country, and where they had been tried, the effect had been ultimately to benefit the selling country.

With acknowledgement to Thami Ngidi and Independent Online.