Six years after being blacklisted by the Indian
government, loss-making state-owned arms manufacturer Denel is scrambling to clear its name with law
enforcement authorities there over allegations of
impropriety during an arms deal tender.
It has now emerged that the South African government has
agreed to assist India with its criminal investigations
against Denel, in
order to bring the matter to a close.
In 2005, Denel was prevented from conducting further
business opportunities in India due to allegations that
it tainted an arms deal tender by paying commissions to
a middleman.
This decision, according to Denel, directly resulted in
the company bleeding R2bn in its operating profit during
the same year.
The group then decided to seek legal recourse against
the Indian government to force it to rescind its
decision to blacklist it.
The Indian authorities have never publicly acknowledged
that the company was in fact blacklisted from tendering
in arms contracts.
Zwelakhe Ntshepe, the company’s executive for business
development, told Parliament’s portfolio committee on
public enterprises last year that Denel had been
blacklisted even though the Indian government had not
officially informed the company of such a step.
Denel told Business Day last week that it was keen to
resolve the matter speedily and resume its business
dealings in India. The country is among the world’s
biggest spenders on weapons, with a budget of 36bn,
according to the Stockholm International Peace Research
Institute.
Last month, Public Enterprises Minister
Barbara Hogan , Denel’s chairman Sibusiso Sibisi and
the group’s lawyer visited India to try to resolve the
lengthy legal dispute.
Officials from the Department of Justice also formed
part of SA’s delegation, which met representatives of
the Indian government.
Business Day understands that an Indian court has issued
a letter of permission to Indian law enforcement
agencies to visit SA to conduct further investigations.
Tlali Tlali, Department of Justice spokesman, referred
queries on the matter to the police and could not
provide further comment .
“Denel has undertaken to facilitate and co-operate on
this matter,” Department of Public Enterprises
spokeswoman Ayanda Shezi said.
“Once the legal processes by Indian authorities have
been finalised, we are hopeful that the trading
relationship between the government of India and Denel
can be normalised.”
Ms Shezi said once the criminal investigation by the
Indian law enforcement agencies was complete, the
government would decide whether to take any further
action against Denel.
The Indian High Commission to SA refused to confirm or
deny whether Denel was discussed during President
Jacob Zuma ’s state visit to India
this month.
langenil@bdfm.co.zaWith acknowledgements to
Loyiso Langeni and Business
Day.
Clearly the only
interest the SA Government has in this matter it bring
it to a close so that Denel can carry on trading in the
lucrative sub-continental market.
Justice and doing the right thing have nothing to do
with it.
Now why might this be?
It's because of those involved.
Denel has always or at least often used unaccredited
commission agents, call them wonga pogglers, scratchers
or whatever, to do its dirty work in the Middle East and
the Sub-Continent.
The most famous, infamous, or should be so, is Mr Yusuf
Surtee who along with his son, Mohammed or Martin or
whatever, is or at least was right there in the middle
of the British SFO's radar screen regarding the British
Aerospace part of the Arms Deal.
That was until these despicable Brits * pulled the plug
on the South African Arms Deal despite the deepest pile
of the most compelling evidence.that a prosecutor could
hope for.
Now Mr Surtee is not only one of Mr Mandela's most
trusted friends, he is also one of Mr Mandela's and
others' most reliable benefactors.
Mr Surtee's name comes up all over the place in the Arms
Deal. So does his and his wife's trust accounts which
looks just like a special purpose vehicle for importing
foreign currency.
The previous time Mr Surtee's name came up was when
Denel gave him R100 million to try to swing an artillery
deal (I think it was G6s) in Saudi Arabia.
But the Americans forced the Saudi to buy American and
Mr Surtee trundled off well-pleased to Houghton with the
R100 million.
And there he cried, "one for ye, one for me and one for
the Ayenceeee".
Now who actually owns that R100 million.
It's you and me because we own Denel and subsidise its
existence with a few billion hard-earned Rands every
year.
And for the record, it is the name Mandela why the Arms
Deal became a no go zone for further investigations into
the Arms Deal after the half-arsed Schabir Shaik
investigation, conviction and short-lived incarceration.
* Not the SFO itself nor its
investigators, but its especially appointed
yellow-bellied head and all his political string
pullers.