Billions to be Spent on Warship: Lekota |
Publication |
The Citizen |
Date | 2008-09-25 |
Reporter | Paul Kirk |
Web Link |
Johannesburg - Defence Minister Mosiuoa Lekota's plans to
bypass constitutionally enforced defence acquisition
procedures and spend billions on a fifth warship for the navy looked
legally "dubious" yesterday.
On September 4, Lekota announced to the public that he was in talks with the
German Frigate Consortium (GFC) to purchase a fifth warship for the navy. Making
the announcement Lekota said the fifth warship would not re-present a new arms
spending spree but was being purchased in terms of the
original agreement that allowed the SA government to purchase a fifth warship as
an option in its controversial R60 billion arms deal.
The original contract for the four corvettes was personally signed by Lekota in
December 1999.
The effect of using this contract to cover his latest military hardware purchase
would be to bypass defence acquisition procedures and simply award a
multi-billion rand contract to the German shipyards without allowing other
companies to tender for the work.
The two largest companies making up the GFC, Thyssen Krupp and Blohm and Voss
were cleared of paying kickbacks to secure the contract to supply the four
corvettes. However allegations that they paid bribes to
senior ANC officials have never been challenged.
The companies had for several years been under investigation by German
authorities for illegally paying bribes to SA officials and politicians - but in
June 2008 Thyssen Krupp Marine Systems in SA announced the probe had folded
without finding any evidence of corruption.
Democratic Alliance (DA) spokesman on the arms deal, Eddie Trent, has repeatedly
claimed the reason for the collapsed investigation was that the
South African government failed to respond to requests for
legal assistance from the German authorities. The German authorities
wanted SA assistance in investigating senior politicians and officials that the
GFC had allegedly bribed.
Repeated attempts by DA members of parliament to obtain copies of letters asking
for assistance from the German authorities have been blocked by the Department
of Justice.
In making his announcement Lekota said the fifth warship would not be another
corvette but a "sealift" ship - one capable of transporting troops and equipment
to trouble spots around the world. Lekota repeatedly stressed the fifth vessel
would not be a corvette but an entirely new class of
warship.
Expert in international law Professor Doctor Andre Thomashausen, head of the
Department of International and Comparative Law at the University of SA, was
shown the original contract for four corvettes - and remarked that it was an
extremely poorly put together contract.
Thomashausen, apart from being an academic, is a German barrister and practises
civil law in the German high courts.
The original contract is styled an "umbrella agreement" and a separate "supply
terms" document the technical details of the frigates - such as the electronics
the ship is to have. Thomashausen said that contracts drawn up in such a way are
legally very clumsy and difficult to enforce in court.
Said Thomashausen: "The umbrella agreement is obsessed with regulating the
conditions for 'DIP' and 'NIP' and forgot to actually regulate the sale of the
ships.
"There is only one paragraph, and that is not even in the main body of the
agreement but in the Preamble that actually deals with the purchase, namely four
Corvettes plus (separately) four combat suites plus (separately) one option for
a fifth Corvette. The option is for a fifth Corvette,
nothing else *1."
Thomashausen said it was clear the agreement does not allow for the purchase of
any type of warship other than another corvette identical to the four already
purchased.
Thomashausen continued: "But it is only an option. To exercise it, a further
purchase agreement would have to be entered into. So, no, this agreement does
not allow them to simply order another ship, but it gives them a right of option
to have one built before the shipyard is entirely committed to building the next
large orders."
Spokesman for Lekota, Sam Mkhwanazi, said no firm order had been placed for the
fifth vessel but that when such an agreement was reached an announcement would
be made.
Asked whether formal acquisition processes would be followed with regard to the
new ship, Mkhwanazi said Lekota had explained the new
warship was covered by the 1999 contract.
Appointed by Mbeki, Lekota was among the many cabinet ministers who tendered
their resignations from cabinet on Tuesday in the wake of Mbeki's ousting.
With acknowledgements to Paul Kirk and The Citizen.