An aerospace consultancy named as the recipient of a commission from Britain's BAE Systems in South Africa's multi-billion arms deal denies the payment is corrupt.

Johannesburg-based Osprey Aviation declined to disclose the amount it was paid by the British arms manufacturer. But, it said, an amount in the region of £160-million (about R1.9-billion) that had been mentioned was "completely absurd".

"Osprey is being paid in line with the normal fee levels associated with its professional services. These fee levels are known to, and have been accepted by, South African and United Kingdom authorities.

"Osprey Aviation rejects any suggestion that any such payments are corrupt either in intent or in fact."

The company said it was contracted in 1994 to guide and advise BAE Systems on regulatory, tendering and commercial processes connected with South Africa's arms procurement programme. It also supplied office and logistical support.

"BAE Systems required this support because, having strictly observed the United Nations embargo against supplying defence equipment to South Africa until 1994, it was new to the defence market in the country."

BAE named Osprey on Tuesday as the sole beneficiary of a commission, after allegations that improper payments may have been made to individuals connected to the arms deal.

This followed a report in Britain's Guardian newspaper that it was revealed in the British parliament that commissions were paid by BAE to a South African "agent" to secure the contract for the Hawk lead-in-fighter trainer.

BAE Systems reportedly declined divulging the amount paid to Osprey, while the British trade and industry department said it had been "within acceptable limits".

Osprey in its statement denied any links with the South African government or any political party.

With acknowledgements to Sapa and the Business Day.