This week’s raids on arms trader Fana Hlongwane are proof that the Scorpions are leaving no stone unturned *1 in the investigation of the country’s controversial multibillion-rand arms deal.

Initiated in February, this investigation may have major ramifications for the government which has always maintained that there was no corruption in the primary contracts.

The Scorpions’ initial probe into the arms deal ­ which led to the conviction of Durban businessman Schabir Shaik ­ focused on subcontracts, with which the government said it had nothing to do.

The latest investigation focuses on the purchase of jet trainers and fighter jets from British arms giant BAE Systems and Sweden’s Saab.

The controversial decision to contract BAE was taken by a ministerial committee, chaired by then deputy president Thabo Mbeki.

The Scorpions are investigating claims that BAE paid bribes to “officials of the South African government and its agencies” to “obtain undue advantage over its competitors in the bidding process”.

The BAE/Saab contract, worth R30-billion at the current exchange rate, was the single biggest acquisition of the entire transaction.

The alleged bribes ­ amounting to R1.8-billion ­ were paid by BAE to Hlongwane, who was adviser to then defence minister Joe Modise ­ and other unnamed government officials.

In contrast, Shaik allegedly solicited R500 000 from French arms firm Thales on behalf of ANC president Jacob Zuma.

The R1.8-billion “commission” was allegedly paid in 1999 after the government decided to buy 24 Hawk jet trainers and 28 Gripen fighter jets from BAE/Saab.

The intense bidding process for the deal was marked by infighting between Modise and the air force. Modise changed the evaluation criteria for the jet trainers by excluding cost as a factor, paving the way for BAE to win the contract.

The cabinet ministers committee, chaired by Mbeki, took the final decision to award the tender to BAE/Saab despite Italy’s Aermacchi MB339, which was favoured by the air force, being half the price of BAE’s Hawk.

Search warrants issued against Hlongwane and BAE this week show that the Scorpions are focusing on agents who received “commission” payments and on the officials who may have benefited from that.

Besides Hlongwane, investigators are looking into the affairs of the late BAE agent Richard Charter, and British-Zimbabwean arms dealer John Bredenkamp.

But the search warrants say nothing about the alleged role Hlongwane or other government officials may have played.

However, they indicate that investigators believe officials from the Department of Trade and Industry may also have benefited from BAE Systems’ offset programme, estimated at more than R60-billion in counter trade and investment flows.

­ ngobeniw@sundaytimes.co.za

With acknowledgements to Wisani wa ka Ngobeni and Sunday Times.