Publication: The Star Issued: Date: 2007-03-15 Reporter: Chiara Carter

The Once-Glorious Package a Blot that Just Won't Go Away

 

Publication 

The Star
Date

2007-03-15

Reporter

 Chiara Carter

Web Link

www.thestar.co.za

 

Accusations of kickbacks persist in the wake of criminal prosecutions

From discounts on flashy cars to unsuccessful bidders suing the government… from spooks to off shore accounts… shadowy middle men and Swiss banks…

The multibillion-rand arms deal may have all the makings of a movie, but it's a chapter of the new South Africa that just won't go away.

It all dates back to 1998, when a comprehensive Defence Review, headed by then minister Joe Modise, set out the country's needs for added weaponry.

The government endorsed the plan, leading to the now infamous arms deal.

Word quickly went round the world: South Africa was window-shopping, and arms dealers were meeting with diplomats and officials in all corners.

The government had a clear shopping list: four corvettes, 60 helicopters, 28 Gripen fighter jets, 24 Hawk trainer aircraft and three submarines *1.

And there were any number of bidders willing to supply them. The winning contenders were GSC, Agusta, British Aerospace, German Frigate Consortium-Thomson *2, and a joint Swedish-British consortium.

And so the business was done and the deal was signed.

Meanwhile, senior ministers were busy telling the public that this was good for the country. The arms deal wasn't just about enhancing our fleet, they said. It would create 65 000 jobs and generate more than R100-billion for the economy.

But the sceptics began to howl, discrediting the offsets at all costs. And many others began to howl, among them those in the ranks of the ANC, who had pinned their hopes to some of the losing bidders.

Step forward then Pan Africanist Congress MP Patricia de Lille, who in 1999 exposed those very rumblings.

Although the claims were rubbished, her dossier marked the start of the arms deal saga.

It soon came to light that what was good for the country was also very, very good for many of those involved.

There were the lavish gifts for navy officers, discounts on smart cars for others, and claims of huge commissions ending up in the pockets of some prominent politicians, officials and their friends.

At the end of the day, 24 individuals and 68 statutory bodies were probed by the Joint Investigation Team. Its report, published in 2001, concluded that there was "no evidence of improper or unlawful conduct on the part of the government in the arms deal".

Many of the officials involved in the probe have since left public office - notably public protector Selby Baqwa, auditor-general Shauket Fakie and National Prosecuting Authority head Bulelani Ngcuka *3.

Criminal prosecutions followed. Former ANC chief whip Tony Yengeni, who lied to parliament about his discounted 4x4, pleaded guilty and served a prison stint. And Durban businessman Schabir Shaik, Jacob Zuma's former financial adviser, was convicted of fraud and corruption and is in prison.

However, since that report was published, prosecutors in other jurisdictions have raised serious allegations of widespread corruption.

London's Serious Fraud Office is leading an inquiry into R1-billion allegedly paid by British Aerospace to SA officials to secure the lucrative deal.

Sweden is probing similar allegations into Saab, which provided the Gripen jets, amid claims that part of the deal also came with a hefty bribe.

Meanwhile, Germany is looking into claims that former Department of Defence head of acquisitions Shamin "Chippy" Shaik received a R21-million kickback.


*1       Wrong - the government had a clear shopping list: six frigates, 60 light utility helicopters (LUH), 38 advanced light fighter fighter (ALFA) jets, 24 lead-in fighter trainer aircraft (LIFT) and four coastal submarines.

Joe Modise had his own shopping list: four or more MEKO 200 or MEKO 200AS German frigates, 60 Agusta Italian light utility helicopters, 28 or more Gripen Swedish advanced light fighter aircraft, 24 or more Hawk British lead-in fighter trainer aircraft and three or more Type 209 HDW German submarines.

Chippy Shaik also had his own shopping list: four or more MEKO 200 or MEKO 200AS German frigates, 60 Agusta Italian light utility helicopters, 28 or more Gripen Swedish light fighter aircraft, 24 or more Hawk British lead-in fighter trainer aircraft and three or more Type 209 HDW German submarines.


*2      Actually the European South African Corvette Consortium (ESACC), consisting of :
*3      The three stooges who didn't actually write the JIT's report but took the good work of, inter alia, Advocate Charles de Chermont and Advocate Jan Swanepoel, Gilbert Swats, Hermie Mostert, etc. and then mixed this in with the input of Thabo Mbeki, Alec Erwin, Trevor Manual and Mosioua Lekota and gave this to Advocate Stoffel Fourie and Advocate Lionel van Tonder, probably with the editorial assistance of Tony Heard, and came up with the sorry thing that is the JIT Joint Report.