Move precedes cancellation deadline on further tranches
Law Courts Correspondent

SA's arms acquisitions chief Shamin "Chippy" Shaik quit his position unexpectedly last week just a few days before the deadline for a decision on whether the second and third tranches of the arms deal would be cancelled.

Sunday was the deadline for government to decide whether it would buy 31 additional fighter aircraft a purchase that would make up 28% of the arms deal.

Shaik was not available for comment at the weekend.

Spokesman for the defence ministry, Sam Mkhwanazi, said Shaik tendered his resignation last Wednesday, and would be serving his notice period this month.

Defence department figures indicate that the arms deal is costing the taxpayer R57bn, and the Democratic Alliance (DA) said a cancellation of the two tranches could save the taxpayer about R16bn.

Simultaneously, the party welcomed Shaik's resignation as a "long overdue" event, saying it would "close the chapter on our history where ethical conduct in government procurement was fundamentally compromised".

DA spokeswoman Raenette Taljaard said: "Shaik got away with it and others will now be emboldened to act in a similar fashion. It was a setback for the fight for sound ethics when Mr Shaik was treated with such kid gloves by the defence ministry in a completely non-transparent manner."

The DA said it was noteworthy that Shaik chose to resign after he kept his position during the course of the entire arms deal investigation.

This, Taljaard said, ensured that he remained in a powerful position with the scope to influence the investigation by potentially screening information and documentation that went to the joint investigating team.

Said Taljaard: "Now that the investigation is out of the way, and it failed to turn the screws on Mr Shaik, he feels free to leave, having made his dubious contribution to the defence department."

The DA said the key question was whether Shaik would be taking up employment in any defence-related industry a step that would raise a number of ethical issues yet again.

With acknowledgements to Bonile Ngqiyaza and Business Day.