Law Courts Correspondent

Government's decision not to cancel the second tranche of SA's multibillion dollar arms for investment deal, has come in for criticism from opposition political parties, with many accusing the state of intransigence and arrogance.

Two senior ministers for defence and trade and industry said on Monday only a desperate economic situation would compel Cabinet to exercise an option to cancel the two remaining tranches of the deal estimated at R52,2bn.

The Democratic Alliance (DA) said yesterday that government's justification for going ahead with the second tranche of purchases for 12 Hawk aircraft, was weak. The party's spokeswoman on security, Raenette Taljaard, said contrary to government's assertion, there was sufficient economic reason to cancel the remainder of the deal.

She cited a number of reasons, saying they supported "abundantly a cancellation" of the remainder of the deal. Taljaard said these were the unpredictability of successful industrial participation, the collapse in the currency, rising inflation and rising interest rates and the prospect of slower economic growth globally and locally.

"It defies belief," said Taljaard, "that government can believe that the taxpayers and those in need of social services and social security, do not require the safety valve, which the cancellation of the second tranche constitutes."

The United Democratic Movement (UDM) characterised the decision as arrogant, particularly in the light of the court challenge the state still faces.

UDM president Bantu Holomisa said: "As with HIV/AIDS, it seems that this government will not hesitate to undermine or ignore the courts of this country."

He said there was more than enough evidence that buying arms was not a priority for South Africans, "yet government continues to blatantly ignore the needs of this country".

He said instead of buying arms there "should have been an investment in the people of SA through jobs, growth and infrastructure".

Pan Africanist Congress MP Patricia de Lille said the arms purchase was no longer about benefiting the country, but more about individuals' egos.

"Government will use anything or any reason to justify the acquisition of these arms," De Lille said.

With acknowledgements to Bonile Ngqiyaza and Business Day.