South African Arms Deal

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The South African Arms Deal was a US$4,8 billion (R30 billion in 1999 rands) purchase of weaponry by the South African Government finalised in 1999 which has become heavily tainted by corruption. ^[1]^[2]

The South African Department of Defence's Strategic Defence Acquisition was to modernise its defence equipment, which included the purchase of corvettes, submarines, light utility helicopters, lead-in fighter trainers and advanced light fighter aircraft.

1 Requirements
2 Final Shortlist
3 Review
4 Bribery allegations
5 After the Party
6 References
7 External links

[edit] Requirements

Description	Original Qty	Illustrative total cost
Corvettes	4	R4 billion
Maritime helicopter for corvettes	5	R1 billion
New submarines to replace Daphne	4	R5,5 billion
Alouette replacement	60	R2 billion
Advanced light fighter	48	R6-9 billion
MBT replacement of Olifant	154	R6 billion
Total cost in 1998 Rand		R25-38 billion

[edit] Final Shortlist

Item / Country	Original Request	Possible Reduced
Corvette Requirement	4	4
Britain	GEC F3000
Germany	GFC Meko 200/Meko A200
France	La Fayette
Spain	Bazan 59B
Maritime Helicopter for Corvettes	6	4
France/Germany	Eurocopter Cougar
Britain	GKN Super Lynx
Submarine Requirement	4	3
Britain	second-hand Upholders
Germany	GSC TR1400
France	DCN Scorpene
Italy	S 1600
Sweden	Kockums T192
Advanced Light Fighter Aircraft Requirement	48	38
Britain/Sweden	BAe/SAAF JAS-39 Gripen
Germany	Eurocopter EC635
France	Bell 427
Light Utility Helicopter Requirement	60	48
Italy	Augusta 109
France/Germany	Eurocopter EC635
Canada	Bell 427
Main Battle Tank Requirement	154	108
France	LeClerc
Britain	Challenger 2

The South African government announced in November 1998 that it intended to purchase 28 BAe/Saab JAS 39 Gripen fighter aircraft from Sweden at a cost of R10.875 billion, ie R388 million (about US$65 million) per plane.^[3]

[edit] Review

The Attorney-General of the Western Cape, Adv Frank Kahn SC and the SIU's own senior legal advisor, Adv Jan Lubbe SC,reported on 18 January 2001 were as follows : ^[4]

there are sufficient grounds in terms of the Special Investigating Units and Special Tribunals Act No 74 of 1996, for a special investigating unit to conduct an investigation, and, in our opinion, such an investigation is warranted.

[edit] Bribery allegations

British and German investigators suspect that bribes of over one billion rand were paid to facilitate the deal. Jacob Zuma, Thabo Mbeki, Schabir Shaik and his brother Chippy Shaik and the late Joe Modise have all been mentioned. Andrew Feinstein, an ANC Member of Parliament and the former African National Congress leader of Parliament's public accounts watchdog Scopa, resigned when the party moved to curtail investigations into the arms deal. He wrote a book called After the Party with an insider's view of the process.

Patricia de Lille has been a whistle-blower on corrupt payments to get the contracts.

Winners were British Aerospace, Thomson Holdings, through its South African subsidiary Nkobi Holdings, and ThyssenKrupp from Germany.

De Lille alleged in Parliament that she had evidence of three payments by warship supplier Thyssen-Krupp on January 29, 1999, each of R500000, to the ANC, to the Nelson Mandela Children's Fund and to the Community Development Foundation, a Mozambique charity associated with Mandela's wife, Graça Machel.

The payments were allegedly made into foreign accounts with Credit Suisse First Boston. The three entities have denied any knowledge of the payments, while Thyssen has declined to comment.

[edit] After the Party

In his book Feinstein alleges:^[5]

That former defence minister Joe Modise received more than R10-million from a variety of bidders;

That a report submitted by Scorpions investigators recommended that arms deal corruption involving the ANC itself should be investigated. This was driven by a number of factors, Feinstein writes, including "trips that the party's treasurer general, Mendi Msimang, made to Switzerland to meet the successful bidders"; and

That Italian submarine bidders Fincantiere were told they had won the contract, but were informed later that they had been dropped in favour of the Germans. They were offered the chance to "better the Germans" via a payment of $15-million in bribes.

Feinstein points out that this is the same sum under investigation by the German authorities, in relation to an amount allegedly solicited by South Africa's former chief of acquisitions, Chippy Shaik. Shaik has denied the allegation.

Feinstein also contradicts public claims by senior government figures that there was no attempt to interfere with the probe into the arms deal once Parliament had authorised a joint investigation team (JIT).

He writes: "I was told by someone from the JIT about a meeting with the president at which they… were told who they could and could not investigate."

Elsewhere he claims: "It was made clear to investigators that a shadowy financier close to Mbeki and Zuma who has played an ongoing role in financing the ANC, was off limits."

He notes: "For instance, the charge sheet for the arrest of Schabir Shaik was drawn up to charge both Shaik and Zuma. When presented to Bulelani Ngcuka, he is alleged to have responded: 'I will charge the deputy president only if my president agrees.'"

Recounting how he was hauled before the party's top brass after Parliament had authorised its own investigation, Feinstein writes: "I was given a brief opportunity to try to explain the prima facie evidence we had and the process we were following.

"Within a few minutes Minister in the Presidency Essop Pahad had launched into a ferocious diatribe, spluttering 'Who the fuck do you think you are, questioning the integrity of the government, the ministers and the president?' Pointing aggressively at me, he shouted that we should simply withdraw the resolution."