BAE's Arms-deal Payment Must be Probed DA |
Publication | Business Day |
Date | 2003-07-01 |
Reporter | Wyndham Hartley |
Web Link | www.bday.co.za |
Cape Town - A reply to a parliamentary question in Britain has revealed that an unnamed South African received as much as £150m in commission to assist BAE Systems secure the contract for the Hawk trainer jet, which is part of SA's controversial multibillion-rand arms deal.
The revelation has deepened suspicions of irregularities in the deal, with the opposition Democratic Alliance (DA) calling last night for a new investigation.
London's Guardian newspaper reported yesterday that the commission was paid to a South African, but BAE Systems declined to identify him and the British trade and industry department did not know his identity.
British law outlaws payments to foreign public officials, but there is no indication that the individual was working for the SA government.
The DA's spokeswoman on the arms deal, Raenette Taljaard, expressed dismay at the news. "These allegations must be probed as a matter of utmost importance," she said. "The SA government should also reveal the identity of the agent who received the commission."
The Guardian reported that the British export credit guarantees department (ECGD) said the payment was within acceptable limits. The paper speculated that if it was in line with previous payments, it would be about £150m.
Answering a parliamentary question, British Trade Secretary Patricia Hewitt said the ECGD's application process required details of agents' commission to be disclosed. "Due diligence procedures were followed and no irregularities were detected."
Former ANC MP Andrew Feinstein, who was involved in the push to have the arms deal investigated, was quoted in the Guardian as saying: "The revelation fuels the allegations that there was serious corruption in the deal, which have never been properly investigated."
BAE Systems confirmed last night that it employed consultants and advisers when operating in foreign countries. SA authorities were informed of the advisers, as required by regulations.
"BAE Systems rejects any suggestion that any such payments are corrupt either in intent or in fact," the company said.
With acknowledgements to Wyndham Hartley and the Business Day.