Publication: The Citizen
Issued:
Date: 2006-07-05
Reporter: Paul Kirk
Reporter:
| Publication |
The Citizen
|
| Date |
2006-07-05 |
|
Reporter
|
Paul Kirk
|
President Thabo Mbeki will be one of the spectators in the
stands during the World Cup soccer final – but his trip to Germany could hardly
have come at a time more likely to embarrass him, prompting speculation that
Mbeki himself may be the victim of a smear campaign by his rivals.
On
Monday morning Der Spiegel, a well-known German publication revealed that for
the last five years the Dusseldorf prosecutor’s office have been in possession
of information that bribes worth millions were paid to a Swiss based middleman
who in turn passed these on to an un-named South African politcian.
The
bribes were for landing the German Frigate Consortium the contract to supply
four frigates to the SA Navy.
This information was, according to German
newspaper reports, first received when an unnamed South African wrote to the
authorities informing them of the alleged bribery.
Late last month
several of the companies making up the German Frigate Consortium were raided by
investigators looking for evidence of corruption. Why it took nearly five years
for these raids to be carried out was not probed by any of the newspaper
articles.
Mukoni Ratshitanga, a spokesman for the Presidency refused to
comment on who may have been responsible for providing the information to the
media, but hinted it was part of a smear campaign by saying the intentions of
those leaking the story: “could not escape anyone with an average IQ.”
The German media have not named Mbeki as personally being involved in
any corruption, but he headed the Ministerial Committee which concluded the deal
with the German Frigate Consortium.
Professor Doctor Andre Tomashausen,
head of the department of International and Comparative Law at the University of
South Africa told the Citizen that now, in his opinion, was an especially
dangerous time for those involved in corruption.
“It has now been
mentioned roughly how much was paid as bribes. There is no honour among thieves
and the middlemen may well have helped themselves to some of the payments. Those
who were paid the bribes may well be incensed when they realize they have been
shortchanged.”
In the wake of the revelations that up to R140 million was
paid in bribes as part of the corvette deal the Citizen has obtained a letter
written to the German Frigate Consortium asking them to cut back on the
specifications of the ship that the navy wanted in order to make it more
affordable.
The letter, written by Rear Admiral Johnny Kamermann to the
consortium tells the consortium that the cost cutting measures: “represent a considerable [departure] from the functionality
required...” *1
The letter then goes on to say that electronics be
removed, that weapons systems be downgraded and the number of missiles be
reduced. The letter also asks for warranties to be scrapped in order to lower
the cost.
Tomashausen said that it had been widely reported that the
South African government had paid nearly US$400 million for each frigate when
the going price for similar ships was US$300 million.
Said Tomashausen:
“The arms deal was sold on the basis of counter trade. The deal with this is
that in return for buying the ships the Germans will invest in South Africa. The
problem is the cost of this is built into the price of the ships. You pay more
than you need to. And of course the cost of any bribe would
also be built into the contract.”
He said he found it interesting
that the SA Navy had to downgrade the ship that they wanted because they could
not afford the asking price.
Janes Defence correspondent Helmoed
Romer-Heitman said he doubted the downgrading of the ship was to finance
bribes.
“I think the move was done largely because of
the fluctuations in the exchange rate *1. When the Rand collapsed the
ship still had to be paid for in US Dollars and so the price of the original
ship went through the roof. Things had to be changed to make it
affordable.”
*1 The functionality of the combat
systems were reduced by about 50% for about a 200% doubling in price (R1,470
billion to R2,599
billion).
*2 Nonsense.
Once the preferred
bidder and its price of R6,001 billion was selected on 17 November 1998, the RoE
for the project was pegged at Euro1,00 = R6,40. By the time the contracts were
signed on 3 December the RoE was Euro1,00 = R6,37 (a saving or R36 million). Yet
the contract price increased from R6,001 billion to R6,873 billion, a nett
difference of R907,62 million. This would easily have financed a first tranche
of "initial success fees" of R137 million (DM30 million) after the Germans went
from zero to hero after Mbeki's trip to Germany in late 1995 and another R160
million (DM50 million) in "substantial success fees" once the financing
agreements were signed in early 2000 and effective date of contract (EDC) was
achieved on 1 April 2000.
Investigative Skills : Examination 1st
Semester 2006 *3
The first tranche of "initial success fees" of R137
million (DM30 million) was handed over by a German national to a South African
in Geneva.
Q1 25%
Who was the
German?
Q2 25%
Who was the South
African?
Q3 25%
Precisely on what date did
the authorisation from Thyssen for this transfer
occur?
Q4 25%
Precisely on what date did
the actual transfer occur?
Q5 10% Bonus
Points
Was the transfer of the wonga effected in a Health and Racket Club
gym bag, or was it done by means of electronic funds
transfer?
Q6 5% Bonus Points
If the
transfer of the wonga was effected in a Health and Racket Club gym bag, what was
the name of the hotel used for the
handover?
Q7 5% Bonus Points
If the
transfer of the wonga was effected by means of electronic funds transfer, what
are the names and account numbers of the benefactor and beneficiary
accounts?
*3 A little late, but better late than
never.