That Arms Deal, Again |
TV Station | MNet |
Program | Carte Blanche |
Date | 2011-10-30 |
Producer | Susan Purén |
Presenter | Bongani Bingwa |
Researcher | Susan Comrie, Leila Dougan |
Web Link | www.mnet.co.za |
In 1994 the South African government announced that
it intended re-equipping the air force and navy.
Four years later, the arms deal was signed and so
began a saga that has seldom been far from the news.
Jacob Zuma (South African President): "`I announced
that I would..."
This past week came an announcement South Africans
concerned with accountability have waited a long
time to hear...
Finally, an official probe into allegations of
corruption in the 1999 Strategic Defence Procurement
process.
Jacob: "...as the arms deal..."
The President was lauded for appointing three
respected judges to the commission.
A few days later, the terms of reference were
announced. The Commission would have sweeping powers
to search and seize, subpoena witnesses and to
compel them to answer questions.
They will look at the fringe benefits, or offsets of
the deal, the recovery of losses, whether any person
improperly influenced the awarding of contracts and
whether fraud and corruption can be proved to
justify the cancellation of contracts.
Bongani Bingwa (Carte Blanche presenter): "It's the
story that refused to go away. From the initial
revelations, a small group of individuals doggedly
stuck to their guns demanding an enquiry into the
arms deal."
Terry Crawford-Browne (Arms deal activist): "Our
whole democracy hangs in the balance. This is now
the tipping point."
Terry Crawford-Browne, the economist at the
forefront of the investigation from the get-go,
wants the contracts cancelled without delay.
Terry: "And that could be done almost immediately
given the volume and the admissions of bribery
payments that we could cancel those contracts. So
that would be a tangible apology to the people of
South Africa for what they have gone through for the
last 15 years. And that would establish the
credibility of the commission."
Bongani: "It all started here. In 1999 Patricia de
Lille stood up in Parliament and said she had
information that fingered senior politicians for
involvement in corruption in the arms deal."
[Carte Blanche archive] Patricia de Lille: "To
determine whether certain officials and public
representatives are guilty of criminal conduct..."
Back then, Patricia was chief whip for the PAC and
she made it her mission to get to the bottom of the
allegations of impropriety in the arms deal.
Currently the Mayor of Cape Town, she's on a trip
abroad and spoke to us on the phone about the
announcement.
[On phone] Patricia: "There's certainly are a lot of
speculation about the reasons for it and it does
seem it is linked of course to the ANC conference
next year. At least we've been calling since the 9th
of September 1999 for this commission of enquiry and
it is finally going to happen. And that's why we
welcome it."
She believes there shouldn't be amnesty from
prosecution for any one.
Patricia: "In this instance, it is not political
offences that people were involved in. This is
simply corruption and when it comes to corruption in
a country that is plagued by corruption we'd be
sending out a wrong message that you do corruption
and you just come clean and you say what you've
done, that you will be granted amnesty. People who
are alleged to be involved must be charged and
prosecuted."
Terry, on the other hand, would prefer a TRC type of
investigation.
Terry: "So that we get to the story and it would be
quite a short period to get that full disclosure
from the Cabinet ministers that led the acquisition;
the people who received bribes let them have full
disclosure."
We met Terry ten years ago when the rumours of
corruption first surfaced.
His information had come from insiders.
Terry: "The ANC intelligence operatives came to me
and said you're talking about corruption, we'll tell
you where it is. Around the leadership of MK and it
wasn't just the arms deal - it was other things it's
oil and toll roads and diamond deals and money
laundering and that kind of thing. And it was on a
scale far bigger that I was talking about."
Bongani: "Over the years a lot has been said to
discredit you, perhaps even malign you."
Terry: "Well, it's had its ups and downs but I
always been comforted that eventually I'd be
vindicated."
Bongani: "What has the personal cost been for you?
Terry: "Well, I spent all my money on investigating
and legal fees and so forth."
Bongani: "For Terry Crawford-Browne the arms deal
has become something of a personal crusade. He's
taken the matter all the way to the Constitutional
Court."
And it's widely believed that it's this application
that pushed President Zuma into action.
Terry: "The reports are that he told the NEC that he
was going to lose the case and therefore he had no
option but to agree to a Commission of Enquiry."
"The Devil in the Detail' is the latest book to be
published on the arms deal. It's packed with 500
pages of arms deal analysis and was co-authored by
Hennie van Vuuren, who's obviously pleased at the
latest developments.
Hennie van Vuuren (Institute for Security Studies):
"What we have been waiting for is an independent
commission led by a panel of retired judges and one
that meets certain specific criteria. That it's an
open process where the public have access to that it
has the power to subpoena individuals both here and
potentially from abroad, but equally that the public
is allowed to give information. "
He says the appointment of a judicial commission
indicates that at last, the corruption unleashed by
the arms deal, is being taken seriously.
Hennie: "We need to understand what the actual cost
of the arms deal was, were the public misled in that
process, by whom, and then we also need to
understand what the impact has been."
IDASA's Judith February says the Commission should
also look at the original affordability study.
Judith February (Institute for Democracy in Africa):
"That said whether South Africa enters into this
arms deal would depend on government's appetite for
risk and somehow, despite all of the warnings of
that report, government went ahead and entered into
this deal anyway. And I think we need to understand
exactly what happened after the affordability report
was tabled and why government didn't head its very
clear advice."
Post-democratic South Africa coincided with the end
of the Cold War and it was targeted by near bankrupt
arms dealers.
Terry: "And you will recall that we had every
politician flocking in here saying, 'We love Mandela
and the new democracy,' with one hand and were
selling weapons with the other."
Soon after Cabinet named its list of preferred
suppliers for the deal.
And this is what was ordered:
- Four multipurpose patrol Corvettes at a cost of
R6-billion from a German Frigate Consortium;
-Three Diesel Electric Submarines from a second
German Consortium at just more than R5-billion;
-30 Augusta Helicopters from Italy at just more than
R2-billion;
- 24 Hawk 100s from British Aerospace at a cost of
about R5-billion, and;
- 28 Gripen Fighters from Swedish SAAB in
conjunction with British Aerospace at a cost of
about R11-billion.
The total cost? Around R30-billion paid over a
period of 12 years, but this didn't include the
financing costs, which upped the figure
dramatically.
Bongani: "In rands and cents: what did the arms deal
cost South Africa?"
Terry: "We don't actually knows because it's a
basket of currencies with huge escalation cost.
there's been depreciation of the currency..."
Hennie: "Two years ago we were told that the arms
deal only cost SA approximately R47-billion. It had
then ballooned from the initial cost of
approximately R30-billion. Our research shows that
the arms deal has cost the South Africa public over
R70-billion. We've probably lost up to 60 000 jobs
according to our analysis."
Hennie's calculations are based on the full impact
of the arms deal on our economy.
Back then, the procurement package was supposed to
have created offsets of approximately R100-bllion
and created 65 000 jobs.
Terry: "Offsets are internationally discredited.
They're a scam promoted by the armaments industry
with complicity of corrupt politicians because it
disguises the cost of the acquisitions to fleece the
taxpayers."
Judith: "Parliament has shirked it's responsibility
in my view and in terms of overseeing those offset
programmes and, if you remember, that was the reason
why the deal was sold to the South African public."
Hennie: "Very little and almost nothing of that has
happened with very few consequences for the
individuals and companies involved. And it's led to
a series of cover-ups. We've become an increasingly
secret State. We argue that a shadow State has
emerged in the wake of the arms deal."
Scores of people and companies connected to the arms
deal have been named in these headlines.
Terry thinks the inquiry should begin at the top.
Terry: "Within this country the Cabinet
sub-committee was headed by Deputy President as he
was then, Thabo Mbeki, the Minister of Trade and
Industry Alec Irwin (sic), and the Minister of
Finance Trevor Manual (sic), who was responsible for
the affordability and the financing of the
acquisitions. And then the late Joe Modise and the
late Stella Sigcau. There was a cabinet committee of
five ministers."
Bongani: "This is not the first official probe into
the arms deal. In 2001 the joint investigation team
found no individual could be held accountable for
what went wrong and as late as last year the head of
the Hawks, General Anwar Dramat announced that
despite the mountain of evidence the Scorpions had
gathered, the investigation would be dropped."
Bongani: "What's
actually changed?"
Hennie: "I think that
the political terrain has changed and shifted
to some extend (sic) where as some months ago I
think that President Zuma felt that these issues
were untouchable, that nobody would be able to go
after them successfully."
With acknowledgements to Carte Blanche.
But the grensvegters are
still the grensvegiters.
Aluta.