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Judgement in Arms Deal Case to be Given Tomorrow, Thursday, March 4 2004 |
Press Statement by :
Economist Allied for Arms Reduction - South Africa
03 March 2004
ECAAR-SA
3B Alpine Mews
High Cape
Cape Town 8001
021-465-7423
ecaar@icon.co.za
Judgment in ECAAR-SA's application for cancellation of the arms deal is to be given tomorrow, Thursday March 4 at 9:45am in the Cape High Court.
Our application was filed in November 2001 in the public interest in terms of Section 38 of the Constitution, and was heard on February 17 and 18, 2004 by Judges Andre Blignault and Ntlupheko Yekiso.
We argued that the "affordability study" presented to the government in 1999 warned of the risks and costs of the arms deal and that, given such warnings, the purchases are irrational and therefore unconstitutional. In addition the Minister of Finance, in signing the foreign loan agreements, could not have "applied his mind" because the default clauses cede control of South Africa's economic and financial policies to European banks and governments and the International Monetary Fund.
The loan agreements are integral to the supply agreements, and their nullification would therefore collapse the arms deal.
Government's counsel argued that irrespective of the affordability study warnings, the consequences of cancellation of the arms deal would be "catastrophic" because of the default clauses in the loan agreements.
ECAAR-SA's arguments focus upon Section 217 of the Constitution that requires government procurements to be conducted in a manner that is "fair, equitable, transparent, competitive and cost-effective". We also argue that the social and economic commitments contained in Chapter Two of the Constitution impose an obligation on government to prioritise the eradication of poverty before massive expenditures on armaments.
Judgment that the arms deal is unconstitutional would also mean that the financial consequences of cancellation will fall to European rather than South African taxpayers.
ECAAR-SA is represented by Advocates John van der Berg and Paul Eia who were briefed by Attorney Charles Abrahams whilst the government is represented by Advocate Michael Kuper SC
Terry Crawford-Browne
With acknowledgements to Terry Crawford-Browne and ECAAR-SA.