The government has defended its decision to proceed with the purchase of the R16-billion second tranche of the arms deal, saying the South African National Defence Force needs to make and keep peace.

The cabinet recently approved the purchase of 12 Skyhawk aircraft as part of the second tranche of the arms deal, valued at R52,7-billion over 12 years.

The Democratic Alliance estimated that if the second tranche was cancelled, it would save the government R16-billion.

Defence Minister Mosiuoa Lekota told a media briefing in Pretoria on Monday that there were syndicates, like al-Qaeda, which managed budgets that were more than some countries' gross domestic product (GDP) and which could wreak havoc.

He said South Africa needed the ability to protect itself. No one could have predicted the September 11 attacks in the US but now the US was engaged in a protracted war against al-Qaeda.

Trade and Industry Minister Alec Erwin said the government had negotiated two "safety valves" into the arms deal so that if the economy deteriorated, it would still be able to exit from the deal.

Therefore, when the Cabinet met to decide on the second tranche, they were considering whether the economic situation had deteriorated to such an extent that proceeding with the arms deal would harm the economy. "Clearly we are nowhere near that. There is no reason whatsoever to consider the possibility of not taking the second tranche," Erwin said.

The government would proceed with the third tranche, which involved the purchase of 19 single-seater aircraft by the end of March 2004, which was much smaller in price compared to the second tranche. He said the industrial participation linked to the arms deal was ahead of schedule.

With acknowledgements to Charles Phahlane and Cape Argus.