The major contracts clinched during the country's controversial arms deal were well managed and had turned out to be successful down the line, according to Public Enterprises Minister Alec Erwin.

On Tuesday he brushed off allegations that top politicians pocketed bribes from German companies who were bidding for the corvette component of the deal.

German media have reported that prosecuting authorities in that country raided the offices of companies involved in the deal after suspicions that they paid bribes.

Allegations of bribery Paying bribes in Germany in a bid to win defence contracts became illegal in that country only in February 1999. Before that it was an acceptable practice that earned companies tax breaks.

Questioned at a media briefing about the allegations, Erwin said that since it was a German investigation, it would be wiser to wait for formal notification about what exactly was being placed under the spotlight.

He said South Africa would co-operate with the investigation if asked by the Germans.

"We are not aware of the outcome. We have not been informed about any of those matters, but we will co-operate if we have to.

"We remain very confident... that not only were the major contracts well managed, but I think that, many years later, these have been successful contracts," Erwin said.

'We are not aware of the outcome' Trade and Industry Director-General Tshediso Matona said the offset programmes of the arms deal, which saw successful bidders invest in the country, were on track, with only one exception.

"The offset programme is proceeding very well, we are satisfied overall with the progress. We recently had to report to parliament. I don't have the details of that, but I know that we have imposed penalties in one instance.

"I won't be able to tell you which particular partner has violated some of the commitments," Matona said.

This week, the German news magazine Der Spiegel reported that in 2001 the public prosecutor in Düsseldorf received a letter from South Africa, containing an unproven allegation that a top South African politician received a multimillion amount via Switzerland in 1999 for his involvement in the deal.

Der Spiegel also reported that in December 1994 South Africa announced that the shortlist of suppliers for the deal had been reduced from five to two: Britain and Spain.

On his trip to Germany in January 1995, then deputy president Thabo Mbeki surprisingly announced to then foreign minister Klaus Kinkel and the German consortium that "the race is still open".

This article was originally published on page 1 of The Star on July 04, 2006

With acknowledgements to Linda Daniels and Independent On Line.