South Africa was unlikely to sell arms to Libya as it was bound by a United Nations (UN) arms embargo, which outlawed such deals, presidential spokesperson Bheki Khumalo said yesterday.

Khumalo said that it would be premature to talk about any deal with Libya as no decision had been taken.

"It is still very early to say," he said, adding that the recent discussions between South Africa and Libya were merely "exploratory talks" and nothing had been finalised.

This follows reports that South Africa was in discussions with Libya to manufacture and sell arms to that country despite the UN's ban.

The sensitivity about discussing the deal arises from the conflict between South African officials' natural attraction to what would be a lucrative boost to the export-hungry arms industry and the country's commitment to abide by international obligations.

The embargo, similar to the strictures imposed on apartheid South Africa, forbids all forms of arms sales to Libya.

The security council embargo followed the Lockerbie bombing trial in which two Libyan nationals were found guilty of planting the bomb that killed 259 passengers and crew members. About 11 people died on the ground in the Scottish town.

It is know that Libya wants to upgrade its old Mirage aircraft, acquire a new force of fighter jets and also wants to replace its ageing military helicopters.

Denel Aviation Airmotive, a subsidiary of the state's arms manufacturer, Denel, has proven expertise in upgrading and extending the working life of both Mirage fighters and helicopters.

Max Sisulu, the deputy chief executive of Denel, said last week that his company would abide by the UN regulations. He said that apart from these resolutions, the matter still had to be approved by the National Conventional Arms Control Committee, which is chaired by education minister Kader Asmal.

The committee, which has been criticised for failing to make public its reports for the past two years, will be making its deliberations this week on the government's intentions to amend the National Conventional Arms Control Bill.

Analysts said should this move be successful, it would considerably reduce both parliamentary oversight and the transparency of the country's international arms trade.

With acknowledgements to Johannesburg and Business Report.