Publication: Defence-Aerospace.com Issued: Date: 2010-08-12 Reporter:

Probe into German-Greek Arms Deals Reveals Murky Side of Defense Sales

 

Publication 

Defence-Aerospace.com

Date 2010-08-12
Web Link www.defence-aerospace.com

 
Investigations into the German submarine deal with Greece has peeled away another layer of fraudulence. The German firm Ferrostaal, is suspected of paying bribes to politicians through a Greek company in the German submarine deal with Greece. At the same time, prosecutors are trying to determine whether Greece overpaid or agreed to deals for military equipment it did not need.

With acknowledgements to Anna Majavu and Sowetan.



Sound familiar?

It sounds familiar because it is familiar.

Ferrostaal is another company whose business model is bribery and corruption. Mainly international bribery and corruption.

Just like its sister company Thyssen.

Both companies are now part of the conglomerate Thyssen Krupp Marine Systems.

Ferrostaal supplied coastal submarines to the SA Navy. Submarines it did not need and cannot afford to run.

Thyssen supplied frigates to the SA Navy. Frigates it did not need and cannot afford to run.

All familiar.

Ferrostaal also bribed the Portuguese authorities to buy submarines.

But while investigations are ongoing in Portugal and Greece, they were never followed through either in South Africa or Germany, albeit that the German investigating authorities found a mountain of documentary evidence that Ferrostaal paid even bigger bribes to win the South African submarine deal than Thyssen did to win the South Africa frigate deal.

This evidence was found when Ferrostaal was raided when searching for evidence relating to Thyssen's deal. By they Thyssen Krupp had purchased Ferrostaal and so the former was warehousing its tax and other documents at is sister company's premises in Essen. Thyssen is based in Dusseldorf.

And they found the motherload - implicating both Thyssen and Ferrostaal.

You see, in those days (pre 1999) bribes to foreign officials were tax deductible as "useful expenditure". So not only are the transactions recorded, they appear almost indelibly in the company's tax records, income statements and expense statements.

But the groot koppe at both Thyssen and Ferrostaal have prevailed upon Dr Angela Merkel to otherwise defeat and delete the investigations against them in South Africa.

The same way as things were done in France to thwart the investigation there against Thomson-CSF.

But an important question that should be asked by the critical, why are investigations allowed to proceed against giant multinationals in foreign countries, yet invariably get abandoned in South Africa, a relatively unimportant member of the internal community.

It is because it involves politicians right to the very top in each country, starting off with Mandela and Mbeki in South Africa, John Major and Tony Blair in the UK and Helmut Kohl in Germany. They made those deals. These were the genuine smoky room deals.

Now no-one wants to go anywhere near looking at the involvement of Saint Nelson and his absolutely corrupted ANC.

Saint Nelson even gave R3 million of his own money to Jacob Zuma when it was made known to the former that the latter was falling under the spell of Schabir Shaik and Thomson-CSF due to his enormous consumption of viagra and other family expenses.

Where did Nelson get this money?

Where did his wife Winnie, then chairwoman of the ANC Women';s League get their R72 million cut?

From Thyssen, Ferrostaal and Thomson-CSF that's where.

Probably around R300 million, R350 million and R300 million respectively (all 1999 Rands), that's how much.

In the meantime British Aerospace lashed out with R1 200 million. About R200 million was in overt payments as overt commissions. Richard Charter could be said to deserve about R20 million of this as his share of the overt commissions. But he also got another R100 million or so as covert commissions. But he's now dead.

Altogether the graft on the Arms Deal was about R2 billion out of R30 billion (all 1999 Rands), about 7,5%.

Funny that's about twice what I estimated it to be in an interview in circa 2001/2 with Dr Peter Bachelor and Prof Paul who were doing a study into the financial aspects of the Arms Deal on behalf of the Dept of Finance.