A report that up to R2 billion in secret commissions to agents in order to secure contracts in the multi- billion-rand arms deal has led to demands for further probing of possible irregularities surrounding the deal.

The Guardian newspaper in London reported yesterday that the giant aircraft maker BAE Systems paid the millions in commission to secure the contract for Hawk fighter jets.

The British government has confirmed such a payment, but BaE refused to reveal the identity of its confidential agent. Such commissions are not illegal.

But payments may not be made to foreign government officials in such deals.

This follows earlier allegations in the newspaper that more than £500 000 (about R6m) was paid to the then defence minister, the late Joe Modise, and that cash also went to the ANC's coffers for the 1999 election campaign.

ANC spokesman Steyn Speed said the ANC never received any payment from such quarters, and challenged anyone to prove otherwise.

Government spokesman Joel Netshitenzhe described the report on commissions and the UK row over it as "much ado about nothing".

Britain's Trade Secretary, Patricia Hewitt, is quoted in the report as telling parliament: "ECGD's (export credit guarantees department) application process requires certain details of agents' commission to be disclosed to the ECGD ...

"Due diligence procedures were followed and no irregularities were detected in the process that had to be followed to gain approval for the deal.

The Democratic Alliance, however, said yesterday that the allegations "must be probed as a matter of utmost importance". It also demanded that the government reveal the identity of the "agent" who received the commission.

Netshitenzhe said that there was no secret agent.

The agent referred to was a consultant, or broker, who, as "normal practice" was paid for brokering deals.

Netshitenzhe said it was believed that BAE Systems would issue a statement on the allegations today.

But Andrew Feinstein, a former ANC MP who resigned as chairman of the parliamentary public accounts watchdog that probed the arms deal, said the revelation "fuels the allegations, that there was serious corruption in the deal, which have never been properly investigated.

"In the interests of public accountability, the British and South African governments have a responsibility to give full details of who the agent was and what their role in the deal was."

UK payments to foreign public officials were banned last year.

But the ECGD appeared to have no way to monitor where the commission went, the Guardian said.

With acknowledgement to the Cape Argus.