The French global electronics company, Thales, has been given a glowing report card from the South African Department of Trade and Industry for its offset industrial participation which is a spinoff of the controversial arms procurement deal.

In a report on the offsets - which apply to any imported content of any public sector purchase which exceeds $10 million - presented to the Trade and Industry portfolio committee of the national assembly on Wednesday notes that in a joint venture between Thales, Total Energy and Tenesa (Pty) Ltd enjoys an estimated revenue per year of $20 million and 95% of its production is exported through Thales and Total Energy.

Tenesa, previously a distribution centre for imported and sold solar panels with no value addition which employed five marketing personnel, created 70 jobs "at the initial set up" in 2000 and 70 further jobs in expansion in 2000-01, DTI reports.

The company, based in Cape Town is involved in the manufacture and assembly of photovoltaic modules (solar panels).

The "Report on Projects of the National Industrial Participation Programme" notes that Thales is also involved in a joint venture with Invensil and Pechinery to increase the production of three existing silicon smelter furnaces at Polokwane (formerly Pietersburg), Limpopo.

Two of three smelters had been upgraded with Pechinery introducing efficient technologies and training and upgrading of furnaces.

DTI reported that this has prevented the retrenchment of 390 employees and created a further 90 jobs. "The facility is currently producing about 970 tonnes of silicon metal per year where the end users are the Far East, Europe and the USA".

Revenue was about $2.5 million a year, DTI reported with 95% of revenues from exports. In addition a by-product, silicon fume dioxide is 100% exported with revenues of about $1 million a year, DTI reported.

Thales is also involved in the Evertrade Medical Waste Facility also in Cape Town. This is described as "a health care risk waste company". It was based on best infection control practices and utilized state of the art technology for the management, transportation and processing of medical waste in a controlled and ecologically friendly fashion, said DTI.

Thales is involved in the provision of combat suites for the SA Navy corvettes which is part of South Africa's controversial multi-billion rand arms deal which also involves the purchase of 30 light utility helicopters,24 Hawk lead-in fighter trainers and 28 Gripen advanced light fighter aircraft.

South African deputy president Jacob Zuma has repeatedly denied allegations that he tried to solicit a 50,000 rand bribe from Alain Thetard, the former Southern African head of arms company, Thomson-CSF (which became Thales in December 2000).

With acknowledgement to the South African Department of Trade and Industry.