Statement by Eddie Trent, MP
DA Spokesperson on the Arms Deal

19 March 2008

"Documents from Germany's Chief Senior Public Prosecutor appear to link senior government officials and cabinet members to Arms Deal corruption"


The Democratic Alliance is in possession of highly significant documents from the Chief Senior Public Prosecutor in Germany which appear to link senior government officials and members of cabinet to bribes paid by the German Frigate Consortium to secure a tender for four corvettes. 

In a letter to Swiss authorities in 2007, German prosecuting authorities allege that the German Frigate consortium had paid "considerable bribes" to conclude the tender agreement in contravention of the Prevention of International Corruption Act. It more specifically alleges that such bribe money was paid to both South African officials and members of cabinet.

Initially, a Spanish-led consortium had been the preferred bidder as it was the most cost effective choice. But after the invitation to tender was repeated four years later the German Frigate Consortium had become the preferred bidder.

The document in question specifically identifies the central role played by the former head of acquisitions for ARMSCOR, Chippy Shaik, in helping to manipulate the tender process to ensure that the German Frigate Consortium was selected as the preferred bidder.

In March 2008, Justice and Constitutional Development Department spokesperson Zolile Nqayi admitted that the department had received a request from German authorities for mutual legal assistance in 2007. However, the department was still awaiting a response to a "request for further particulars".

The document refers to the establishment of shell companies and other methods to facilitate the payment of bribes in the form of commissions. One such example is allegedly Mallar Inc, a company registered in Liberia in 2000 for over 22 million dollars. The German prosecutor alleges that most of this money directly or indirectly flowed to South African officials and members of cabinet".

The exact timing of the payments and the identities of the recipients is not clear at this stage. However, the German investigation is continuing, and the Office of the Chief Public Prosecutor is attempting to follow the flow of money from a variety of sources to South African officials and cabinet members.

In light of these startling revelations, which directly implicate members of President Mbeki's own cabinet, the President has no choice but to immediately appoint a completely independent commission of inquiry to probe these and the myriad of other allegations of irregularities and corruption associated with the arms deal.

As more and more evidence of wrong-doing in relation to the arms deal emerges, those who benefited from corrupt deals are rapidly running out of places to hide, and the government is running out of excuses for continuing to turn a blind eye to this scandal.

The DA will send a copy of these documents to the Minister of Justice, Bridgette Mabandla and we will request that she explain exactly how her department intends cooperating with the German investigation and expediting this investigation. We will also request an assurance that she will insist on the cooperation of all relevant government departments and law enforcement agencies.

The DA also this week submit a series of parliamentary questions that probe this new information. Unless the President breaks his silence on this issue, the DA will have yet another reason to add to the growing list of reasons for moving a motion to dissolve Parliament so that the people of South Africa can hold this government to account for its numerous failures.

Media Enquiries:

Eddie Trent MP - 083 600 8949
Lindiwe Mazibuko - 072 805 2220

With acknowledgements to Eddie Trent.