THE official silence on South Africa's investment in the development of a Russian-built satellite was broken this week by the new auditor-general, Kimi Makwetu.

In a reply to an application in terms of the Promotion of Access to Information Act by Democratic Alliance MP David Maynier, Makwetu revealed that former defence minister Mosiuoa Lekota's decision to withdraw approval for Project Flute - the original agreement to help finance the venture - had resulted in a claim of more than R115-million against the state.

Makwetu said that a "significant uncertainty" referred to in the auditor-general's report on the statements of the special defence account for the financial year 2006-07 refers to "the cancellation of Project Flute".

It is the first time a serving state official has acknowledged the project's name, a cost associated with it, or openly admitted its existence since the Sunday Times raised questions about it last month.

It is believed Project Flute and its successor, Consolidated Project Flute, have cost taxpayers more than R1-billion. Whether South Africa has reaped any benefits from it, or whether it was just a waste of money, is shrouded in official silence.

"The next step is to follow the money and determine whether there was an investigation into financial misconduct under Project Flute," Maynier said.

He would "crowbar" the truth out of defence intelligence", he said.