Publication: Cape Argus Issued: Date: 2007-03-15 Reporter: Boyd Webb

New Talks on Arms Deal

 

Publication 

Cape Argus

Date

2007-03-15

Reporter

Boyd Webb

Web Link

www.capeargus.co.za

 

A-G, NPA chief and Public Protector set to meet

Three big guns meet tonight to discuss renewed allegations of corruption in the arms deal, although the re-opening of their 2001 investigation appears unlikely at this stage.

Auditor-General Terence Nombembe said he, National Prosecuting Authority head Vusi Pikoli and Public Protector Lawrence Mushwana would meet to "determine a way forward".

Indications are that the trio will opt to focus more narrowly on allegations against the former head of defence acquisitions, Chippy Shaik, which re-surfaced in the media recently.

"We will be looking at all the requests that have come through asking for an investigation and then we will decide on a way forward."

He would not comment on whether this could lead to another Joint Investigating Team (JIT) probe, similar to the one that cleared the government of any wrong doing.

The November 2001 report, however, fingered Shaik for a conflict of interest relating to his brother Schabir's involvement with one of the successful arms contractors.

An internal inquiry found he had also disclosed confidential information relating to a draft report.

Public Protector spokesman Charles Phahlane said yesterday that only Shaik's alleged involvement in alleged corruption might be investigated.

This comes after Der Spiegel magazine claimed he had received a $3 million payment from one of the bidders and the DA duly asked the Public Protector to investigate.

Investigations by law enforcement agencies in Sweden, Germany and Britain have turned up the heat on local agencies to have another look at the corruption allegations.

A Swedish anti-corruption unit is the latest to join its British and German counterparts in investigating allegations that secret commissions were paid to South Africans to secure arms deal sales.

In 2001, the British aerospace company BAE Systems, in a joint venture with Saab of Sweden, sold 24 Hawk jet-trainer aircraft and 28 Gripen fighters to South Africa. Saab, which is 20% owned by BAE, manufactured the Gripens.

British police are focusing on the R30bn BAE deal from which eight South African government officials allegedly benefited from by R1bn.

German investigators are looking into a commission of $3m allegedly secretly paid to Shaik during defence ministry negotiations to buy four warships for R12bn from the German Frigate Consortium.

Meanwhile, Nombembe and a delegation from the AG's office appeared before the ad hoc committee reviewing Chapter Nine institutions at Parliament yesterday morning.

Chairman Kader Asmal quizzed them on a range of issues, including who audited the AG's expenditure of its R800 million budget.

Nombembe said their auditors, BDO Spencer Stuart, had to report to the office's oversight committee, but had not yet done so. The auditors would be reviewed shortly.

The committee lauded the AG's office for being the most mature Chapter Nine body structurally and noted it had not required state financial assistance since 1993.

With acknowledgements to Boyd Webb and Cape Argus.