Publication: Weekend Argus Issued: Date: 1995-05-20 Reporter: Jean Le May

Corvettes - Thabo All At Sea

 

Publication 

Weekend Argus
Date 1995-05-20/21

Reporter

Jean Le May

 

A political row is brewing over the role of Deputy President Thabo Mbeki in international tenders for new corvettes for the South African Navy.

Cabinet Secretary Professor Jakes Gerwel said that at a cabinet meeting this week Minister of Defence Joe Modise asked for the decision on corvettes to be held over.

Ministry sources said tenders had been re-opened to accept late bids from Germany, France and Denmark and that the short-list of two - Scotland's Yarrow Shipyard and Spain's Bazan Shipyard - had been shelved.

Armscor announced on December 24 that tenders from Yarrow and Bazan would be considered in the next round of evaluations.

It said Frigate Consortium (a German consortium involving Blohm and Voss shipyard and the industrial giant Thyssen), Svenborg Shipyard of Denmark and DCNI of France had been eliminated.

However, Weekend Argus has established that during his visit to Germany between January 6 and January 14 - a fortnight after the Armscor announcement - Mr Mbeki told German foreign minister Klaus Kinkel and directors of the German consortium that "the race was still open".

Douglas Gibson MP, Democratic Party spokesman on defence, told Weekend Argus that "on the face of it, it appears that there has been some political interference".

"Mr Mbeki should be careful to avoid giving the impression that South Africa is a banana republic when it comes to international tenders", he said.

Mark Wiley, a National Party spokesman on defence, said that "a dangerous precedent was being created with politicians interfering improperly in the state tendering process.

"Politicians are under scrutiny overseas for transgressing the very important principle that state tenders should be immune from political interference", said Senator Wiley.

Mr Mbeki was in Umtata yesterday and could not be reached for comment.

Christoff Hoenings, a director of Thyssen telephoned Weekend Argus from Germany yesterday to say that Mr Mbeki had told him and his directors in January that "the race is still open to all contenders".

Mr Mbeki had repeated this during a conversation with German foreign minister Klaus Kinkel, said Mr Hoenings.

The fax from Armscor was "a bit disappointing", he added, because in previous talks with Armscor the consortium had been given the impression that it would have "further opportunities".

Mr Hoenings said the consortium was putting together revised counter-trade proposals which would be "of great benefit to South Africa".

All the tenderers had been informed of the decision by fax on December 23. Weekend Argus was told by Byrall Smith, Armscor programme manager for naval projects under the special defence account.

The procedure is that the Minister of Defence, the Chiefs of the Army and the Navy and various other people would have been informed before the press statement was released he said.

According to diplomatic sources, the previously eliminated tenderers were all now renewing their proposals with emphasis on counter trade proposals.


With acknowledgements to Jean Le May and Weekend Argus


The history that haunts.