Thales, embroiled in controversy in South Africa over the arms deal and the role of Deputy President Jacob Zuma, could face a multibillion-rand lawsuit from the government of Taiwan.

French and Taiwanese newspapers reported last week that Taiwan intends to sue Thales (formerly Thomson-CSF) in France for damages following allegations of corruption in the 1991 sale of six Lafayette frigates to the Taiwanese navy.

Up to R6-billion (in today's money) is said to have been paid to various intermediaries in illegal commissions. The matter is to be decided by the Paris appeal court.

With acknowledgements to Alide Dasnois and The Star.