Publication: Cape Times Issued: Date: 2004-12-13 Reporter: Christelle Terreblanche Reporter:

DA Queries Government's Second Multi-Billion-Rand Arms Deal

 

Publication 

Cape Times

Date 2004-12-13

Reporter

Christelle Terreblanche

Web Link

www.capetimes.co.za

 

The DA has raised more questions around the government's "second arms deal" - an agreement to spend billions of rand on military aircraft from Airbus.

Yesterday, the DA asked whether proper procurement procedures were followed in the acquisition programme for between eight and 14 planes, needed for South Africa's peace-keeping operations in Africa.

Since the surprise announcement on Thursday by the Department of Transport, the plans have caused a stir. On Friday, the DA asked for the deal to be "suspended" pending parliamentary scrutiny.

Yesterday, its trade and industry spokesman, Enyinna Nkem Abonta, said: "Despite the fact that numerous other technology and procurement options were available, it appears as if our government has agreed to buy R6 billion to R8bn worth of military aircraft from Airbus." This raised "three important questions" about procurement.

"Has government followed the procurement policy recommended in the Joint Investigative Team's report on the first arms deal?"

Nkem Abonta also asked whether the Treasury had made allowances for the impact of the procurement on the current account and whether the Industrial Participation Control Committee (IPCC) approved the Industrial Participation (IP) component of the latest deal.

"The IP secretariat is obliged to... evaluate IP proposals and submit them to the inter-departmental IPCC for approval. The deal on the table is reported to have '401 direct jobs and 2 767 indirect employment opportunities' associated with it, but experiences with the IP deals in the first arms deal show the benefits... are uncertain at best."

Ian Phillips, transport minister Jeff Radebe's adviser, said that in the past three years over R100 million had been spent to contract privately owned airlift capabilities to deploy personnel, resources and material into African peace-keeping operations because the current fleet was inadequate.

With acknowledgements to Christelle Terreblanche and the Cape Times.