Publication: Associated Press Issued: Date: 2007-01-08 Reporter: Celean Jacobson

British Authorities Investigate BAE Arms Deal with South Africa

 

Publication 

Associated Press

Date

2007-01-08

Reporter

 Celean Jacobson

 

Johannesburg, South Africa (AP) British investigators were looking into a multimillion pound (dollar) defense contract between Britain's BAE Systems and South Africa in an arms case that has long been marred by scandal, a British official confirmed Monday.

David Jones, chief press officer for Britain's Serious Fraud Office, said the "complex" investigation was "a few years old" and that there had been communication with "officials in South Africa" regarding the investigation.

He would provide no other details about the investigation and said it was against policy to identify any people who might be suspects in the case.

Lucinda Moonieya, spokesman for South Africa's anti-graft unit, the National Prosecuting Authority, would not confirm or deny whether its British equivalent had submitted a request for assistance. She said she could not comment on any ongoing investigations.

Lisa Hillary-Tee, a BAE Systems spokeswoman, said the company "continues to cooperate fully with the British investigation.

"As this is a continuing criminal investigation, it would be inappropriate for us to comment on the substance of the investigation. Consistent with this, we will not be commenting on any point of substance. This cannot, of course, be taken as any kind of admission," she said.

The arms company won a contract in 1999 to supply South Africa with military aircraft including 24 Hawk fighter trainers, at allegedly double the price of a rival Italian bidder.

Scandal has surrounded the deal from the outset. It has led to the downfall of a number of politicians.

President Thabo Mbeki fired his deputy president, Jacob Zuma, in June 2005 after Zuma's former financial adviser Schabir Shaik was convicted of fraud and bribery in the arms case. Zuma was accused of being aware of efforts by Shaik to secure him yearly payments of 500 000 rands from the French arms company Thint Holdings to deflect corruption investigations into the arms deal.

Last year German newspapers reported that Mbeki's name had come up in investigations by authorities into the dealings of Thyssen Krupp, which supplied warships to South Africa.

Mbeki, who has denied the allegations, was deputy president at the time of the arms deal and served as chairman of the procurement process.

Patricia De Lille, leader of the Independent Democrats, who produced a dossier of evidence supporting allegations that politicians from the ruling African National Congress were involved in irregularities around the arms deal, welcomed the British investigation.

"All these allegations have been around since 1999 but the joint investigating team the state appointed cleared the government of any wrong doing. But we know we paid double the normal price for the Hawks. This is a serious indictment on the South African government," she said.

• AP writer Thomas Wagner in London contributed to this report.

With acknowledgements to Celean Jacobson and Associated Press.