Arms Deal Inquiry Crushed |
Publication | The Helen Suzman Foundation |
Date | March 2001 |
Reporter | Patrick Laurence |
Web Link | www.hsf.org.za |
The government has deployed a rapid response force of loyal troops to halt an embarrassing probe of the arms procurement package.
In the past few months the African National
Congress government machine has ensured with singleminded efficiency that no
rigorous investigation of the alleged corruption surrounding the R43.8bn arms
deal will take place. Its offensive has been the more determined because it
began late: Parliament already had the bit firmly between its teeth when the
government finally woke up in November to the potential embarrassment awaiting
it if the proposed multiagency inquiry got off the ground.
Way back in September 1999 Patricia de Lille, the PanAfricanist Congress MP,
first raised the fears of a group of anonymous ANC parliamentary colleagues that
the deal might be contaminated by corruption. To backbench jeers, ANC leaders
scornfully dismissed her concerns. When she asked for a judicial review, defence
minister Mosiuoa Lekota countered by demanding that she disclose the identity of
her informants. It is a sign of the executive's overweening confidence that it
took no steps then to head off any future challenge.
The arms deal, or strategic defence procurement package as the government calls
it, came under the spotlight again when the auditor general, Shauket Fakie,
presented his report to Parliament last year. Fakie detected "material
deviations from generally accepted procurement practice", many allegations
pertaining to contracts awarded to subcontractors; potential conflicts of
interest that had not been adequately addressed; and doubts about
"offset" arrangements. He recommended a forensic audit.
That set the scene for the hearings of the standing committee on public accounts
(Scopa) - arguably Parliament's most important watchdog, for it monitors how
taxpayers' money is spent - and publication, on October 30, of its initial
report. Echoing many of the concerns of the auditor general, Scopa concurred
that an independent forensic audit was necessary. There was, it said, a need
"to prove or disprove for once and for all the allegations which cause
damage to perceptions of the government."
Scopa suggested a crosscutting investigation involving a combination of agencies with differing investigative skills and areas of legal competence and authority. It proposed an exploratory meeting with four investigative agencies: the Heath special investigative unit (SIU), the directorate of public prosecutions (which controls the investigative directorate for serious economic offences), the public protector and, of course, the auditor general.
Parliament adopted Scopa's report unanimously on
November 2. The exploratory meeting was duly held in Pretoria on November 13.
Scopa chairman Gavin Woods (photo) was mandated to make a statement to journalists
waiting outside. He told them, he recalled later, that the four agencies had
agreed to co-operate and had even had preliminary discussions on how they could
best work together.
Woods believes that it was only then that the executive began to panic. Its
damage limitation campaign began with (strongly denied) reports that Essop Pahad,
minister in the president's office, had tried to persuade ANC members of Scopa
to withdraw or modify their support for the multiagency investigation. Pahad's
alleged initiative was followed a week later by an ANC parliamentary caucus
meeting, at which chief whip Tony Yengeni reportedly adopted a similar line. By
the new year the ANC campaign had been endorsed at a meeting of its national
working committee and its national executive's legkotla or general meeting.
The government's first target was to exclude the Special Investigating Unit (SIU)
headed by Judge Willem Heath from the proposed multiagency investigation. Colm
Allan, director of the public service accountability monitor at Rhodes
University, offers an incisive assessment of the unit's powers and the
experience it has acquired over the past four years. "No other public
protection agency", he says, "can match the Heath unit's capacity
speedily and efficiently to investigate and initiate civil recovery
proceedings." He notes, too, that the unit has a bigger legal and
investigative staff than any of the three public agencies proposed as
participants in the investigation. (For the full text of Allan's commentary,
visit www.psam.ru.ac.za and click Bulletin Board).
The SIU has powers of search and seizure and unlike the public protector and
auditor general is not limited to making recommendations once it has completed
its investigation. It can initiate civil proceedings against implicated
individuals in its special tribunals. The burden of proof in civil proceedings
is less onerous than it is in criminal cases - a balance of probabilities is
sufficient as against beyond reasonable doubt.
The unacceptable independence of the unit hit home when Heath refused to supply
the executive with information he had garnered on the arms deal. President Thabo
Mbeki referred angrily to Heath's perceived defiance in his January 19 speech,
in which he set out his reasons for following the advice of the justice minister
to exclude the unit, and in his letter to Heath of the same date.
"We cannot allow the situation to continue where an organ appointed by and
accountable to the executive refuses to accept the authority of the
executive," he said, describing the situation as one of "ungovernability".
Heath's explanation - which Mbeki emphatically rejects - is that the information
is extremely sensitive and that its disclosure to the executive "could
jeopardise the investigation, lead to victimisation of whistleblowers and place
potential witnesses in protection".
Was Heath being unreasonably recalcitrant, as Mbeki implies, or was he defending
judicial independence and fulfilling pledges of confidentiality to his
informants? Democratic Party spokesperson on public accounts Raenette Taljaard,
who describes Mbeki's epistle to Heath as a "poison pen letter", notes
that the ruling party has been "directly linked to companies that will be
deriving benefit from the arms procurement process." She believes that
guarded scepticism on Heath's part is justifiable.
In the government's campaign against Heath a judgment of the Constitutional
Court on November 28 last year was to prove a godsend. Under current law a judge
must head the SIU, but in a case against the unit, brought by the Association of
Personal Injury Lawyers, the court ruled that the SIU is part of the executive
and cannot be headed by a judge without contravening the doctrine of the
separation of powers. In his January 19 speech, Mbeki cited the court's
injunction to act "without undue delay" to replace Judge Heath with
somebody else who is not a judge.
The president neglected to mention, however, that the court had given the
government a year to regularise the position. This implied that the unit as
presently constituted could serve on the arms deal investigation, provided that
the judge completed his contribution by the November 28, 2001 deadline. Taljaard
seized on that point. Noting that Parliament had unanimously adopted the Scopa
report calling for the inclusion of the Heath unit more than three weeks before
the court ruling, she reasoned that the court had sought to create "legal
space" to allow for its participation.
Mbeki's penchant for quoting selectively from documents to prove his case was
again in evidence in his January 19 speech. He quotes a letter from lawyers Jan
Lubbe, SC, and Frank Kahn, SC, director of prosecutions in the Western Cape, to
justice minister Penuell Maduna, which says "at this stage there is no
prima facie evidence in law that any person or persons committed an
offence." Lubbe is Heath's legal counsel. This quote was widely portrayed
as the president's masterstroke, in which he had persuaded Lubbe to stab his
boss in the back. Quite apart from the fact that, as many commentators have
noted, prima facie evidence is what an investigation hopes to have at the end,
not the beginning, of its inquiries, Mbeki fails to point out the same lawyers'
equally significant conclusion."There are sufficient grounds . . . for a
special investigating unit to conduct an investigation, and, in our opinion,
such an investigation is warranted," they state. Taking account of the
Constitutional Court ruling, they suggest that, "Consideration could be
given to appointing another special investigating unit under an acting judge,
who could then be placed in a position to continue with this investigation by
reverting to his personal status after the Act is amended." Mbeki has not
raised that possibility, though in fairness it should be recorded that ANC
members on Scopa have done so.
Excluding the Heath unit from the arms probe was the first target, and the
assault on the SIU has proved comprehensive: the judge himself has taken
"long leave" and the unit will close when it has completed its current
workload. More chilling is the statement by ANC spokesman Smuts Ngonyama that
the party has "irrefutable evidence" that Heath colluded with
opposition parties, most notably De Lille, and his call for a judicial review of
the matter. His remarks suggest that nothing less than the total destruction of
Heath's reputation and the complete vindication of the government's position
will now satisfy the party.
However the government also had to solve the problem of Parliament. After all
Parliament, the embodiment of the will of the people, voted for the multiagency
investigation, including the SIU, as Scopa had recommended. Indeed Woods wrote
to Mbeki on December 8, formally requesting that he issue the necessary
proclamation authorising the Heath unit's participation.
Frene Ginwala, the Speaker of the National Assembly and a member of the ANC's
national executive, stepped into the breach at that point. In a statement issued
on December 27 Ginwala said she was "not aware of any resolution by
Parliament or the National Assembly instructing the president to issue any
proclamation regarding the work of the Heath commission." She added there
is "no reference whatsoever to the president" in the Scopa report
adopted by Parliament on November 2; and Scopa has no authority to
"subcontract its work" to the four agencies named in its report.
Her statement cast doubt on the legality of Scopa's quest for a multiagency
investigation generally and, more particularly, on Woods' December 8 letter. In
the view of the DP's Douglas Gibson, Ginwala provided the executive with an
excuse to ignore Parliament's wish that the Heath unit should participate in the
investigation. The Speaker had "contradicted" Parliament instead of
supporting it.
At a special meeting of Scopa on January 30,
Ginwala denied "interfering" with the arms probe. However her
statement was used in evidence by justice minister Maduna when he advised Mbeki
on January 15 not to issue the proclamation. A few days later deputy president
Jacob Zuma also quoted it in an uncharacteristically aggressive letter to Woods.
Any action Woods might have taken "to cause any investigative unit to carry
out any investigation" is ultra vires and steps would have to be taken to
ensure that the committee and Woods respected the rule of law, it said. Zuma
went on to accuse Scopa of "having seriously misdirected itself",
making unwarranted assumptions of corruption against government ministers and
officials involved in the arms deal and of launching a fishing expedition in
search of proof of those assumptions. Zuma's letter indicated a significant
change of attitude on his part: early in December he was reported to have
strongly opposed attempts by chief whip Tony Yengeni to stop the inquiry going
ahead.
To complete the mobilisation of its forces against the proposed investigation,
four cabinet ministers - Alec Erwin, Jeff Radebe, Mosiuoa Lekota and Trevor
Manuel - gave a press conference on Janurary 12 in which they threw doubt on the
competence of Scopa and attacked it for not having called themselves to give
evidence.
Although the ANC has an overwhelming majority on Scopa, the committee's
tradition of bipartisan scrutiny of government in the interests of taxpayers
continued under strain but intact until mid January. Then the party pressures -
"executive blackmailing" to quote Louis Green, of the African
Christian Democratic Party - brought to bear on its ANC members began to tell.
They, who had adopted the Scopa report without a murmur of dissent on November 2
last year, now stated: "The Scopa report to the National Assembly did not
in any way single out any of the investigative bodies as institutions that must
be appointed to look into (the arms deal)." The meeting with the four
agencies specifically named in the Scopa report is suddenly downgraded to an
"exploratory meeting", though Woods told journalists after the
meeting, without contradiction from the nine ANC Scopa members present, that the
four agencies had expressed the "desire and intention" of working
together. Instead of dissent, there was consensus that all four agencies should
join forces. In a bid to dignify their backtracking, they declared: "We
reiterate our commitment to exposing and fighting corruption wherever it occurs
. . . If any person associated directly or indirectly with the arms procurement
process is found to have been involved in corrupt practices we will
unequivocally support appropriate legal action taken against them."
The sacking of Andrew Feinstein from his position as the senior ANC spokesman on
Scopa and chairman of the ANC study group on public accounts at the end of
January was the executive coup de grace. Feinstein, who together with Woods led
the committee's probe into the arms deal, was vital in maintaining the
committee's nonpartisan united front. His displacement by the more senior Geoff
Doidge, ANC deputy chief whip, and the inclusion of Andries Nel mean that the
executive can now rely on the party loyalty of Scopa's ANC members.
Nel, it should be remembered, is the man who was appointed chairman of a
committee to decide whether disciplinary action should be taken against justice
minister Maduna following his false accusation that the previous auditor
general, Henri Kluever, had covered up the theft of R170 million. That committee
has repeatedly asked for a postponement and has failed to report back to
Parliament. Interviewed on SABC radio news Ken Andrew, the previous DP chairman
of Scopa, described Nel's appointment as "a disgrace" and "a slap
in the face of Parliament". He also expressed concern that ANC whip, Neo
Mashihela was to attend all committee and ANC study group meetings, and that
Yengeni was to oversee the work of the public accounts committee study group.
These were unprecedented moves, he said. Yengeni's involvement is significant,
for he is one of the individuals who could well come under the spotlight as one
of the alleged beneficiaries of the arms deal.
Scopa now finds itself bogged down in quasi-legal and procedural challenges
arising from Ginwala and Zuma's statements and split again on partisan lines.
Despite the presence of a beefed up DP contingent, and of De Lille and Woods, it
will be difficult for the committee can regain the momentum it had two months
ago.
That leaves the three other agencies that Scopa originally wanted involved in
the investigation. As a former ANC senator, the director of public prosecutions,
Bulelani Ngcuka, is a political appointee. Whether he would press ahead with
investigations if they threatened seriously to embarrass the government has yet
to be put to the test. Suspicions linger that his 1999 decision to release the
Eikenhof Three, who were convicted for the murder of three civilians in 1993,
after the emergence of new evidence, was influenced by the ANC's insistence that
the trio were innocent and should be released. The new evidence raised doubts
about their conviction but did not establish their innocence; legal observers
have argued that the men should have been retried.
Auditor general Shauket Fakie and public protector Selby Baqwa are widely
respected for their integrity. Fakie's report into the arms deal detected
"material deviations from generally accepted procurement practice" and
led to Scopa's recommendation for a multiagency investigation. Baqwa proved his
mettle when he ruled that Maduna's false accusation against Kluever was
unconstitutional. But on the arms deal both Fakie and Baqwa have shifted from
support for the participation of the Heath unit to acceptance of its exclusion.
Their change of stance, which preceded Mbeki's January 19 statement, raises the
possibility that they succumbed to government and ANC pressure.
As many commentators have observed, the government's reaction has been out of
all proportion if, as the executive insists, there are no irregularities to be
found. Yet it has employed multiple tactics to head off what it must believe to
be the public relations disaster of a genuine arms probe. Executive bullying,
personal invective and sackings have gone hand in hand with selective argument
and a legal sophistry designed to delay the process, muddy the issues and
confuse the populace. Ironically, as head of the executive, Mbeki has presided
over an assault on the independence of Parliament, while justifying his action
against Heath in terms of the Constitutional Court ruling upholding the doctrine
of the separation of powers.
With acknowledgement to the Patrick Laurence and The Helen Suzman Foundation.