Publication: Sunday Argus Issued: Date: 2006-07-02 Reporter: Jeremy Gordin

German Prosecutors Probing Kickbacks in Arms Deal

 

Publication 

Sunday Argus
Date

2006-07-02

Reporter

Jeremy Gordin, Sapa

Web Link

www.capeargus.co.za

 

The German Press Agency (dpa) confirmed yesterday that German prosecutors are investigating possible kickbacks related to the sale of four corvettes to South Africa by the German frigate consortium - "irregularities" said to have occurred in 1999.

The dpa reported that Der Spiegel, the German news magazine, will tomorrow publish a report that the equivalent of e15 million (R133m) may have been paid in bribes and then concealed in the shipbuilders' accounts as "expenses" and that Peter Lichtenberg, a Dusseldorf prosecutions spokesman, had confirmed that his office was indeed investigating such a scenario.

Thyssen Krupp Marine Systems led the consortium, known as the German frigate consortium, that won the contract to build the vessels, which were designed in Hamburg, for the SA national defence force.

A senior defence force official, speaking on condition of anonymity, said yesterday: "I would not know what this is all about, really. Why would it have taken six or seven years for this to have come up?

"I suspect that maybe someone *1 started making enquiries recently in connection with (Jacob) Zuma's forthcoming trial for corruption, and so now the German authorities are also making enquiries."

Der Spiegel will reveal that there was a coordinated raid on June 19 on the offices of consortium partners Blohm and Voss in Hamburg, HDW in the Baltic port of Kiel, Thyssen Rheinstahl Technik and MAN Ferrostaal in the western city of Essen.

Der Spiegel said prosecutors, police and tax officials were now studying the records seized.

Thyssen Group spokesman Klaus Pepperhoff said: "We are confident that this suspicion will not be confirmed as the inquiry proceeds."

The South African government decided in 1994 to buy new warships, but the new government was unhappy with the way in which *2 the shortlist of suppliers had been compiled by "old guard" members of the defence force - and, following the defence review of the country's needs, a new list was drawn up, which included the German consortium.

"That was all that happened," the ex-defence force official said. "There was nothing mysterious. And, in terms of offsets, financing arrangements, and so on, the German consortium looked good *3. What is supposed to have happened in 1999, I don't know."

Der Spiegel said the Germans had "mysteriously" moved to the front in a complicated tendering procedure and an order for the four warships was signed on December 3, 1999.

Two of the MEKO-A-200-class vessels were built at Blohm and Voss's yard in Hamburg and two at HDW in Kiel. They are equipped with Exocet surface-to-surface missiles and with missiles to shoot down planes, according the defence-industry media.

The first was delivered in 2003. The MEKO is Blohm and Voss's standard corvette and frigate series.

A corvette is a vessel slightly smaller than a frigate and is suited mainly for coastal protection work.

With acknowledgements to Jeremy Gordin, Sapa and Sunday Argus.


*1 Mo, Chippy, Schabir, Yunis, Jacob, Pierre?

*2 The new government was unhappy with the way in which the wonga was being spread about and amongst it supporters.

The deal with Bazan of Spain to supply four frigates had already been concluded to all intents and purposes in 1995. It only had to receive final approval at cabinet level. It was at this level that the deal was pulled.

Meanwhile the SA Navy and Armscor had hordes of engineers and managers already working at Bazan's shipyard on the west coast of Spain.

It this a clear case of fruitless expenditure?

At the same time it is worth remembering that the RSA could have acquired four frigates from Spain at R2,5 billion (in 1995 Rands). For a splodge of a mere R133 million the Germans got back into the game and then won the game that eventually cost the RSA R6,873 billion (in 1998 Rands). But the ex-defence force official said."That was all that happened. There was nothing mysterious." Nothing mysterious indeed. Not if one lives in the ANC's Wonderland and taken with a good snort of something strong and white right up the fiscal snout.

*3 Looking good is not a stipulation of Section 217 of The Constitution Act of 1996 when it comes to government procurement.

Section 217 stipulates that government procurement has to be fair, equitable, transparent, competitive and cost-effective.

And not black, good looking, or friendly with Thabo, Joe, Chippy or a benefactor of the ruling party.