The National Prosecuting Authority (NPA) yesterday denied that German prosecutors had asked it to help investigate possible kickbacks in a sale of four corvettes to the South African navy.

German publication Der Spiegel said companies in the German Frigate Consortium led by Thyssen Krupp, which supplied SA’s corvettes, allegedly paid R137m in bribes concealed as expenses.

Der Spiegel was set to report yesterday that the alleged “irregularities” occurred in 1999.

In February 1999, Germany outlawed payments classed as “useful expenses” that amounted to nothing more than bribes.

Dusseldorf prosecutions spokesman Peter Lichtenberg confirmed it was conducting an inquiry, but declined to say more, fearing investigations might be compromised.

Der Spiegel said there had been a raid on June 19 on the offices of consortium partners Blohm & Voss, HDW, Thyssen Rheinstahl Technik and MAN Ferrostaal.

On Sunday, Independent Democrats leader Patricia de Lille released copies of letters confirming the investigation of Krupp.

She said she felt vindicated by the news of the investigation because she had questioned the awarding of the contract to the German Frigate Consortium in 1999, when a year earlier the consortium had not made the short list.

The sale of the frigates was part of a R30bn arms deal that SA planned to use to buy 28 Gripen fighter jets, 24 Hawk trainers, 30 utility helicopters and three submarines in 1999.

The Democratic Alliance (DA) has reiterated its call for the NPA to continue investigations into the arms deal. It said that in 1995 the South African National Defence Force was negotiating with Spanish company Bazan to purchase four light frigates for R2,5bn. For unknown reasons, negotiations ended.

In 1998, SA committed itself to the purchase of four frigates from the German Frigate Alliance along with Thomson CSF, with the costs having risen to R6,8bn, DA spokesman on public accounts Eddie Trent said yesterday.

He said government should institute a commission of inquiry into the strategic defence procurement packages.

With acknowledgement to  Ernest Mabuza, Sapa and Business Day.