Press Statement by :

Economist Allied for Arms Reduction - South Africa

19 November 2003

ECAAR-SA
3B Alpine Mews
High Cape
Cape Town 8001

021-465-7423
ecaar@icon.co.za 

The 224 pages of documents provided by the government to ECAAR-SA on Monday fall severely short of those listed in chapters eight and nine of the Joint Investigation Team report into the arms deal. ECAAR-SA has, yet again, received only part of the International Offers Negotiating Team and Financial Working group papers awarded by the Cape High Court on 26 March 2003.

The documents provided are the affordability study of August 1999. Amongst those excluded are the foreign exchange rate assessment and analysis, charts on the consequences of the arms deal for social and economic expenditure, and material on the heavily-promoted offset "benefits".

The arms deal, it will be recalled, was predicated upon bizarre assumptions that expenditure of R30 billion would be made affordable by way of offsets worth R110 billion to create 64 165 jobs, and would stimulate economic development.

Cabinet ministers obviously did not properly "apply their minds" if they approved the arms deal on the basis of the documents now furnished to ECAAR-SA. The affordability study repeatedly and unambigiously warned the cabinet of the risks of the arms deal. It is a damning indictment of a reckless decision made without regard for the needs of South Africa's people.

ECAAR-SA will incorporate these documents into its amended papers to be filed by 10 December 2003. It will proceed with its application scheduled for 17 February 2004 for the loan agreements signed by the Minister of Finance to be set aside, thus collapsing the arms deal.

IDASA has described the arms deal as "the litmus test of South Africa's commitment to democracy and good governance". The content of the affordability study indicates that the government, and the Minister of Finance in particular, has criminally abused the powers of public office.

Terry Crawford-Browne

With acknowledgements to Terry Crawford-Browne and ECAAR-SA.