Member Statement by Eddie Trent
MP DA Spokesperson on Public Accounts
National Assembly

Wednesday, 22 June 2005

President Mbeki was Chair of the Ministerial Committee in charge of the Arms Deal. He must take responsibility for Chippy Shaik being allowed to meet in secret with a number of bidders in the arms procurement process. This despite Shaik's declared conflict of interest. Shaik's involvement polluted the arms deal and violated all normal tender procedures.

Perhaps the reason for President Mbeki's failure to sanction Shaik is that he himself was also meeting bidders in secret.

The DA is in possession of an encrypted fax which suggests that President Mbeki promised Thomsons as early as 1997 that they would be awarded the combat system contract.

Another fax indicates that the President held a secret meeting with executives from Thomsons in December 1998, in complete violation of tender procedures.

President Mbeki needs to explain why such a meeting took place.

Why is there no public record of the meeting?

Were Thomsons guaranteed the corvette contracts?

Unless the President breaks his silence, the public will be justified in thinking that corruption in the arms deal extends far beyond Mr. Jacob Zuma.

Further Background Info Elaborating on Member Statement:

Despite Chippy Shaik's formally declared conflict of interest it appears that he was not only allowed to meet bidders in secret but also to act as secretary of MINCOM. As Chair of the Ministerial Committee in charge of the arms deal (MINCOM), President Mbeki must take full responsibility for this. Shaik's involvement violates all normal tender procedures and contravenes the ARMSCOR Act. Tender procedures provide for a clear separation between different decision making levels and Chippy Shaik's 'roving role' violates this principle.

A series of encrypted faxes in the DA's possession appear to indicate the following:

In November 1997 Chippy Shaik communicated to senior Thomson-CSF executives that he had obtained an assurance from the then Deputy-President Mbeki that Thomson-CSF would be awarded the combat system and the sensors contract.
Another fax dated 18 December 1998, from the Senior Vice President of Thomson-CSF international to the then South African ambassador to France, Barbara Masakela, thanks her for arranging a meeting with Deputy-President Mbeki, most likely on the 17th of December 1998.

If in fact such a meeting took place then it is in gross violation of all normal tender processes. President Mbeki, in his position as Chair of MINCOM was ultimately responsible for the final decision to award contracts and therefore it would be extremely irregular for him to meet with bidders in secret. Furthermore there does not appear to be any official record of the meeting which raises further questions about the need for such secrecy. President Mbeki must urgently explain whether assurances were given to Thomson-CSF through Chippy Shaik that Thomson-CSF would be awarded the combat system and the sensors contract, whether he had a meeting with Thomson-CSF executives in December 1998 and if so what were the details of the meeting.

Unless these vitally important questions are answered, the public will continue to view with justifiable scepticism recent assurances given by senior government officials that the arms deal was free of serious irregularities.

[Hard copies of faxes available on request]

For Further Info :

Eddie Trent
083 600 8949

Media Liaison :

Martin Slabbert
082 320 1890

With acknowledgements to Eddie Trent and the Democratic Alliance.