BAE Systems did not give former defence minister Joe Modise two motor vehicles, and funding of the Umkhonto weSizwe Veterans' Association was all above board, says a spokesperson for the company.

Phil Soucy, speaking from London yesterday, was responding to allegations by Democratic Alliance MP Raenette Taljaard about BAE's role in South Africa's multibillion-rand arms deal. South Africa has ordered 24 Hawk and 28 Gripen fighters from BAE Systems and Saab.

Soucy said the claim that the company had given Modise two vehicles was not true.

"This allegation was thoroughly investigated by law enforcement authorities, including the London Metropolitan Police, and was found to be false," said Soucy

Asked if BAE had paid for Modise to go to the United Kingdom, Soucy replied: "Not as far as I know."

He said that as far as the funding of the veterans' association (MKMVA) was concerned, BAE Systems saw that as part of its social responsibility programme.

"The money was deposited into a First National Bank branch in Pretoria and is administered by a group of trustees called the Airborne Trust. The funds are audited by KPMG," said Soucy.

None of the funds were under the control of MKMVA.

"BAE did it to be a good corporate citizen, to become involved in a project that was going to work towards the benefit of the country. "

When asked if BAE was aware that Modise had connections with a company called Conlog Holdings, which might have benefited from offset programmes flowing from the arms deal, Soucy said once Modise's name cropped up on a list of likely projects, the company was dropped.

"Conlog was on the very first list of projects that could have been candidates for our offset programmes. When we found out that Mr Modise was a shareholder in Conlog, it came off the list."

He said another list was made of all of Modise's known business interests, with instructions that none of those companies could be considered for the offset programme.

Meanwhile an aerospace consultancy named as the recipient of a multimillion-rand commission in the deal has dismissed allegations of corruption.

Johannesburg-based Osprey Aviation also declined yesterday to disclose the amount it was paid by BAE.

But, in a statement, it said an amount in the region of £160-million (about R1,9-billion) mentioned in the media was "completely absurd".

"Osprey is being paid in line with the normal fee levels associated with its professional services."

With acknowledgements to Sapa and The Star.