President Thabo Mbeki will be an honoured guest at Sunday's World Cup soccer final - but his trip to Germany could hardly have come at a time more likely to embarrass him, as arms deal skeletons come bursting out of the cupboard.

The timing of the German arms deal probe, and leaks to the Press, have caused presidency officials to hint that they are part of a smear campaign against Mbeki.

On Monday morning the influential Der Spiegel revealed that for the past five years the prosecutor's office has had information that bribes worth millions were paid to a Seiss-based middleman, who passed them on to an unnamed South African politician.

The bribes were for landing the German Frigate Consortium the contract to supply four frigates to the SA Navy.

According to German newspaper reports the prosecutors were tipped off when an unnamed South African wrote to the authorities.

Late last month several of the companies making up the German Frigate Consortium were raided by investigators looking for evidence of corruption.

Why it took nearly five years for these raids to be carried out was not probed by any newspaper.

Presidency spokesman Mukoni Ratshitanga refused to comment on who might have leaked the information to the media, but hinted it was part of a smear campaign.

The intentions of those leaking the story "could not escape anyone with an average IQ".

The German media have not named Mbeki as involved in corruption, but he headed the ministerial committee which concluded the deal with the German Frigate Consortium.

Professor Andre Tomashausen, head of the Department of International and Comparative Law at Unisa, told The Citizen; "It has now been mentioned roughly how much was paid as bribes.

"There is no honour amount thieves, and the middleman may have helped themselves to some of the payments. Those who were paid the bribes may well be angry when they realise they have been short-changed."

The Citizen has obtained a letter written to the German Frigate Consortium asking them to cut back on what the navy wanted, to make the ships more affordable. 

The letter was from Rear Admiral Johnny Kamermanns, and asks that electronics be removed, weapons systems be downgraded and the number of missiles be reduced. It also asks for warranties to be scrapped to lower the cost.

Tomashausen said it had been reported that SA had paid nearly $400 million for each frigate when the going price for similar ships was $300 million.

Said Tomashausen: "The arms deal was made on the basis of counter trade. The problem is the cost of this is built into the price of the ships. You pay more than you need to. And of course the cost of any bribe would also be built into the contract."

Jane's defence correspondent Helmoed Romer-Heitman said he doubted the downgrading of the ship was to finance bribes.

"I think the move was largely because when the rand collapsed the ship still had to be paid for in US dollars, so the price went through the roof. Things had to be changed to make it affordable."

With acknowledgement to Paul Kirk and The Citizen.