Publication: Sapa Issued: Pretoria Date: 2006-07-03 Reporter: Sapa Reporter: Reporter:

SA would Co-operate with German Corvette Probe

 

Publication 

Sapa
BC-ERWIN-CORVETTES

Issued

Pretoria
Date 2006-07-03

Reporter

 Sapa

 

South Africa would co-operate with a German probe into alleged kickbacks paid in the sale of four navy corvettes, Public Enterprise Minister Alec Erwin said on Tuesday.

He said South Africa would assist in the investigation if asked, but said he had received no "formal notification" on the issue.

"We remain clear of our view that the major contracts were well managed and very successful[ly completed]," Erwin said.

German news magazine "Der Spiegel" reported that it was suspected that R133-million may have been paid in bribes to a shipbuilding consortium and then concealed in the shipbuilders' accounts as "expenses".

Der Spiegel was to appear Monday with a report that the alleged "irregularities" occurred in 1999.

South Africa ordered the four corvettes that the German consortium, led by Thyssen, won the contract to build.

"We are conducting an inquiry," said Duesseldorf prosecutions spokesman Peter Lichtenberg when asked by Deutsche Presse-Agentur for comment on the Spiegel story. He declined to disclose more, saying this might harm the investigation.

Der Spiegel said the possible charges included bribery and tax evasion.

With acknowledgements to Sapa.


*1  The corvette contract was well managed and successfully completed. None of the other programmes are close to completion.

However, even in the corvette instance, this is a classic red herring. The acquisition process was flawed because the legal requirements were ignored and the outcome was pre-determined. This is unlawful and definitely criminal if bribery and corruption were involved.

No-one except the most technical of officials in the government, the DOD, the SA Navy, Armscor, the GFC, Thales International or ADS should be proud of themselves or patting each other's backs regarding the conduct of the corvette acquisition.

The good name of the SA Navy is indeed sullied *2 for at least a generation of ships and sailors and taxpayers.


*2  Sully is the stuff the bilge pumps pump out of the heads. It's not pleasant.