A corvette, the first piece of armament in the controversial multibillion-rand arms deal, has arrived in Simon's Town.

However, the Cape High Court is still waiting for senior government officials to hand over papers that could jeopardise the deal.

As the SA Navy yesterday took possession of the SAS Amatola, the first of four corvettes, navy chief Vice- Admiral Johan Retief said: "One feels a bit overwhelmed, because we have been working on this project for such a long time."

His jubilation might be short- lived, however - the corvette might have to be returned to its German manufacturer, Blam & Voss, if a court application to have the loan agreement set aside is successful.

Economists Allied for Arms Reduction (Ecaar) filed an application in the Cape High Court in 2000 to have the agreement on which the entire arms deal was based set aside.

In filing a returning affidavit, Finance Minister Trevor Manuel and his department's director-general Maria Ramos mentioned papers pertaining to the loan agreement.

Ecaar asked the court that the original copies of the papers be made available to their legal team.

While the court rejected the application for sight of most of the papers, it ordered that an affordability study done by the government be handed to Ecaar.

Manuel has consistently failed to supply the papers and has not commented on the issue.

Manuel and President Thabo Mbeki, as co-respondent in the main case to have the arms deal declared null and void, have not been held in contempt of court on two previous occasions.

However, Terry Crawford-Browne, head of the SA branch of Ecaar, said a final date had been set for November 17 to decide whether the two senior government officials should be held in contempt.

This would automatically lead to the government being unable to defend the main case, which has been scheduled for February 17 next year.

Crawford-Browne said: "We wanted an interdict to prevent the Amatola from entering the docks in Simon's Town, but the court dates are good enough. If we are successful, the German manufacturers will have to repossess the vessel."

Retief refused to comment on the lingering controversy surrounding the arms deal, saying Manuel and Mbeki should comment on the issue.

The Amatola was brought from Germany to Simon's Town by Captain Guy Jamieson and his crew, and Retief said the sight of the vessel arriving was emotional for the SA Navy.

"The whole crew are pretty speechless. They have not seen their families for three months."

The Amatola will become a permanent sight around Simon's Town, but it will take until mid-2007 before it is fully operational.

Most of its 76mm, 35mm and 20mm guns, as well as surface-to-surface missiles and electronic warfare systems, still have to be fitted.

Retief said: "Having specified this ship, a lot of developmental work still has to be done before it is ready for battle."

Part of the arms deal was the procurement of helicopters for the defence force, including a maritime helicopter, which will be delivered in April 2007. It will be used in tandem with the Amatola.

And, in a gesture rich with symbolism, four newborn infants and their mothers - families of men on the Amatola - yesterday became the first in SA to board the corvette.

With acknowledgements to Gustav Thiel, Sapa and The Star.