Publication: Business Day Date: 2005-04-18 Reporter: Ernest Mabuza

'No Comment' from Scorpions

 

Publication 

Business Day

Date

2005-04-18

Reporter

Ernest Mabuza

Web Link

www.bday.co.za

 

The Scorpions refused to comment on a weekend report that the unit was probing whether part of a R100m sweetener paid to a Saudi Arabian agent by arms manufacturer Denel found its way back to SA in kickbacks.

The story in the Mail & Guardian last week said possible recipients of the kickbacks included former defence minister Joe Modise and the African National Congress.

Shaun Liebenberg, who, it was announced on Friday, will become CEO of Denel in June, said he could not comment on whether it was correct to pay sweeteners before deals were struck.

"I am aware of the article but I will only be able to comment once I am working at Denel," Liebenberg said.

The report said Denel paid the R100m in advance as a commitment fee for a deal to sell South African artillery systems to Saudi Arabia worth about R8,6bn.

The money was transferred to a Swiss account associated with the Saudi agent, Esam Hakeem, known to be close to some of the princes who rule Saudi Arabia.

Denel pursued the deal for 10 years but it never materialised. The company then wrote off the R100m as marketing costs when the deal failed.

The Scorpions have reportedly made an application to the Swiss authorities for assistance in tracing the money.

The National Prosecuting Authority's investigative unit has reportedly also listed more than 20 individuals and entities whom it wants the Swiss authorities to check to see if any payments were made to them.

With acknowledgements to Ernest Mabuza and the Business Day.