Investigators raided company offices and homes in South Africa, France and Mauritius Tuesday, searching for evidence of corruption in the awarding of contracts to supply the South African defense force with new weapons costing billions of dollars.

Nkobi has a stake in Thales International, which owns African Defense Systems - the company chosen to supply combat suites for four new South African warships.

Investigators raided the offices of the Nkobi group in Durban, as well as those of the company's attorneys and the homes of its chief executive Schabir Shaik and financial director Colin Isaacs, the South African Press Association reported.

Shaik sits on the African Defense Systems board. His brother, Chippie, headed the defense department's arms procurement program. Both have repeatedly denied any wrongdoing.

The raid in South Africa coincided with others in France and Mauritius on the offices of Thales International and its parent company Thomson CSF Holdings, the South African national director of public prosecutions said in a statement.

Residences belonging to Alain Thetard, the managing director of Thomson CSF Holdings (SA) Ltd., and Thales International Africa's chief executive Jean-Paul Perrier were also searched.

The national director of public prosecutions said it was believed there were documents on the premises which would assist with its probe into the arms deal.

They said,``these documents, which were reasonably suspected to have been in or on the premises, are linked to suspected offenses emanating from the investigations.''

In 1999, the government announced plans to buy new fighter jets, helicopters, submarines and warships from several European companies. At the time, the deal was expected to cost about 30 billion rand

($5 billion at the 1999 exchange rate), but that has now skyrocketed as the rand has lost more than one-third of its value.

Allegations of impropriety surfaced shortly after the deal was announced, and the government ordered an investigation by three government agencies.

Last week, Tony Yengeni, the African National Congress' chief whip in parliament, was charged with corruption, fraud, perjury and forgery in connection with a massive discount he reportedly received on a luxury car in exchange for influencing the defense contracts. Yengeni, who proclaims his innocence, was released on bail pending a trial next year.

An arrest warrant has also been issued for Michael Woerfel, an official with European Aeronautic and Defense Space Company, which was involved in the arms deal.

Woerfel, suspended by EADS for his alleged part in the controversy, is expected to appear in court on Wednesday.

With acknowledgement to Chimes.