|
Arms dealer dumped |
| Publication |
City Press |
| Date | 2011-07-03 |
| Reporter | Adriaan Basson |
| Web Link | www.citypress.co.za |
Fana Hlongwane, the arms deal “playboy” and former adviser to the late
defence minister Joe Modise, has been dumped by British arms company BAE
Systems.
Hlongwane, who has been paid commissions of more then R200?million by BAE
for assisting them in winning arms deal contracts and managing their offset
projects in South Africa, is now claiming R36 million from the multinational
for unpaid fees.
City Press can reveal that:
» BAE dumped Hlongwane in April 2007 after Britain’s Serious Fraud Office (SFO)
initiated an investigation into the arms deal and “extremely negative”
articles about their relationship appeared in the local and British press;
» BAE makes no reference in arbitration papers to allegations that it
bribed Hlongwane, but rather refers to claims that Hlongwane “made corrupt
payments to South African public officials”; and
» In a threatening counterclaim, BAE has warned Hlongwane if he or his
companies are ever convicted of bribery or any related criminal offence, it
will seek repayment of all money paid to him.
BAE was the biggest winner in the arms deal, scoring two multibillion-rand
contracts. With Swedish conglomerate Saab, BAE provided the air force with
26 Gripen fighter jets at a cost of R30 billion
*1, while BAE also received the tender to produce 24 Hawk training
planes for R11 billion *1.
Hlongwane’s involvement in the arms deal – as adviser to Modise and to
BAE/Saab – has never been properly explained and an investigation of his
role, first by the Scorpions and then the Hawks, was shut down last year.
He has been living the high life since he got involved in the arms deal in
the late 1990s, residing in luxury mansions in Hyde Park, Johannesburg, and
at the upmarket Zimbali lodge outside Durban.
Apart from managing to escape investigation by the authorities, Hlongwane
has successfully kept out of the media spotlight and is rarely seen at
social events.
The revelations of a nasty arbitration case between Hlongwane and BAE come
after Saab chief executive Håkan Buskhe said last month that BAE had paid
Hlongwane R24 million for consultancy fees without its knowledge.
Hlongwane has never denied receiving these payments and last year
successfully argued to prosecutions boss Menzi Simelane that they were above
board.
The vehicle used to pay the arms deal “playboy” is a private South African
firm called South African National Industrial Participation (Sanip).
After the statements by Saab, the DA released further documents, showing
Hlongwane received R51.3 million from Sanip between 2003 and 2005.
Documents filed by Hlongwane in the arbitration matter in 2008 and 2009
reveal he received a further bonus of R11.3 million in April 2006 after
certain BAE offset programmes were signed off.
Documents filed by BAE show the company also had a marketing agreement with
Hlongwane under which it paid him £1 million a year since January 2002. When
this agreement was cancelled in April 2007, Hlongwane would already have
earned more than R60 million in marketing fees.
Citing clauses that allow it to terminate agreements, BAE states it was
entitled to end Hlongwane’s services after he was implicated in corruption
that negatively affected the company’s image.
“The criminal investigations into the activities of Ngwane (Aerospace, one
of Hlongwane’s companies) and Hlongwane, and the associated high profile in
the media mean association with Ngwane adversely affected BAE’s reputation
or was likely to do so,” reads a defence statement prepared by BAE’s
London-based solicitors.
BAE spokesperson Leonie Foster says the documents in City Press’s possession
are confidential and were leaked “in breach of confidence”.
She confirms the company has not had a contractual relationship with
Hlongwane for more than three years.
“All documentation in the company’s possession relating to the company’s
historical relationship with Mr Hlongwane was examined by the SFO (UK’s
Serious Fraud Office) in the course of its investigation (that) commenced in
2004. The SFO’s investigation, which among other things addressed
allegations relating to South Africa, was concluded last year and formed
part of the company’s 2010 court-approved settlement with the SFO,” Foster
says.
BAE paid a $400 million (about R2.8 billion) fine to the US last year after
pleading guilty to one charge of conspiring to make false statements, and
£30 million (about R360 million) to the UK after pleading guilty to one
charge of breach of duty in keeping accounting records relating to payments
made in Tanzania.
In May, BAE paid a further $79 million (about R520 milllion) to the US state
department in settling a civil matter relating to covert payments made
through BAE’s “Red Diamond” system.
The Mail & Guardian reported last week that R54 million was paid to a
Hlongwane-linked entity through Red Diamond.
City Press sent questions to Hlongwane’s attorney, but received no
response.
- City Press
With acknowledgements to Adriaan Basson and City Press.
*1
But the bitch lady BAE complains fiercely.
An empty vessel of great sound.
It has the temerity to allege that its consultant was corrupt by making
onwards payments to others (clearly the decision-makes and party-connected).
Yet the money that its agent onpaid came it via covert source such as Red
Diamond Trading Ltd in the British Virgin Islands.
This bitch tansported by land using an armoured lorry through the Channel
Tunnel all of its sensitive records including contracts and payment details
to its foreign commission agents.
Richard Charter is dead so it is unhelpful to go after him.
But BAE's Alan McDonald who received advice from Hlongwane and Charter of
who and how much to pay, himself received GBP5 million in the classic wonga
splodge, the reverse kickback.
He is a canary waiting to sing the sweetest of songs in the prosecutor's ear
and then in open public to a judge of the High Court.
Vat hom.
And vat BAE.
Make it pay 10% of the Hawk and Gripen deal as per the Remedies in Case of
Bribes clause of the Umbrella Agreement.
Throw all of its guilty former and current guilty employees in the slammer
for 15 years, including the wankers who have the prefix Sir to their sorry
names.
Put BAE on the National Treasury's banned trading list for 30 years.
Then I'll start being able to eat solid food again.
Terry will dance just a little jig, because he wants the British Government
to take back its Hawks and Gripens and repay us the total - because this was
in fact a government-to-government deal. Hopes live eternal.