Publication: Cape Argus Issued: Date: 2006-07-04 Reporter: Boyd Webb Reporter:

Cabinet Delays Comment on Corvettes 'Bribe'

 

Publication 

Cape Argus

Date

2006-07-04

Reporter

 Boyd Webb

Web Link

www.capeargus.co.za

 

The government is holding fire before commenting *1 on allegations of corruption in the purchasing of corvettes from Germany.

German magazine Der Spiegel reported yesterday that companies in the consortium chosen to supply the four warships might have paid about Dm30 million, which they concealed as "expenses", to South African politicians to secure the deal.

German media reports conflicted on whether a single politician or many were suspected of receiving payments to influence the decision on the preferred bidder.

Der Spiegel said investigators in a number of German cities had raided the offices of firms involved in the German Frigate Consortium, led by ThyssenKrupp, last month.

Documents were scrutinised or seized in the investigation.

Prosecutors in Dusseldorf were in possession of a letter, sent from South Africa in 2001, claiming that a top South African politician had been paid millions for his help in the arms deal, Der Spiegel said.

The politician has not been named.

German reporters working on the story told the Cape Argus they had written their report based on German prosecutors' refusal to deny the existence of the letter, which sparked the investigation.

The Der Spiegel report comes as President Thabo Mbeki prepares to visit Germany this week for the World Cup hand-over, at which he is to receive the baton as head of its next host country. At the same time, South Africa is considering buying a fifth corvette.

Government spokesman Themba Maseko said the Cabinet would discuss the allegations before commenting.

"Obviously the matter will have to be discussed by the government before we issue a statement," Maseko said.

"We constantly monitor the media and, based on the media, we then decide whether such stories merit a response from the government."

The presidency, however, has voiced suspicion about the timing of the report.

"The intentions behind all these moves so close to the president's visit to Germany cannot escape anybody with an average IQ," said presidential spokesman Mukoni Ratshitanga.

He refused to say who was suspected of instigating the rumours.

The possibility of undue influence in decisions on the corvettes deal was first raised in September 1999 by then-PAC MP Patricia de Lille after she had received a dossier from "concerned ANC MPs".

In her online newsletter yesterday, De Lille, now leader of the Independent Democrats, said the German consortium had not been shortlisted for the deal.
She noted that Mbeki, then deputy president, had visited Germany in 1995.

Later, the German bid was included in the shortlist, she said.

An auditor-general's investigation in 2001 confirmed there had been irregularities, but these and later investigations had been largely ignored, De Lille said.

She hoped the German investigation would provide answers to the questions the South Africa government was not willing to answer.

Eddie Trent of the DA has called for a full-scale judicial commission of inquiry into the strategic defence procurement packages. Such an inquiry would have the power to subpoena witnesses, he said.

Meanwhile, Sapa reports that the National Prosecuting Authority has not had a request from German prosecutors for help in the investigation.

Durban businessman Schabir Shaik has been convicted of corruption in relation to the arms deal. Arms firm Thomson-CSF's South African subsidiary and former deputy president Jacob Zuma also face charges.

With acknowledgements to Boyd Webb and Cape Argus.


*1       Tis best to first go to Germany over the weekend and try to find out what the Gernan investigators know?

Like whose name is or whose names are mentioned in the letter or in those banking transfer records deep out of Thyssen's archive at head office in Essen and/or offsite at MAN Ferrostaal's offices in Dusseldorf.