/ 15 February 2008

Whiff of rot in Angolan arms deal

A key figure from South Africa’s scandal-plagued arms deal is embroiled in a new investigation by German prosecutors involving Thyssen Krupp Marine Systems (TMKS), the company that led the consortium supplying four corvettes to the South African Navy.

Former Rear Admiral Johnny Kamerman, who was project director of the South African corvette acquisition programme, features prominently in a new probe by the Dusseldorf Prosecutors office — which is also investigating allegations of corruption in the South African deal.

The German magazine, Der Spiegel, reported on Monday that investigators probing the South African matter had come across indications of corruption in a proposed deal to sell one corvette and three coastal patrol vessels to the Angolan navy.

Although Kamerman, who now works for TKMS, is not a suspect, information obtained by the Mail & Guardian indicates that he played a key role in marketing the €700-million deal to the Angolans.

A source close to the German naval industry also claimed that Kamerman’s premises had been searched in raids carried out last year as part of the Dusseldorf investigations and his laptop computer had been seized.

The same source said he believed important information about the South African deal had been obtained from Kamerman’s laptop, together with details about South African military technologies and developments.

In August 2006 Kamerman was a senior member of a TKMS dele-gation that presented a ‘budgetary offer” to Angolans during a two-day visit to Luanda.

Kamerman had been suddenly appointed vice-president of sales at TKMS while apparently still in Germany, where he was posted by the South African Navy to manage the corvette handover in the South African deal.

In November 2006 Kamerman also hosted an Angolan delegation’s visit to the Blohm & Voss shipyards of TKMS in Hamburg and a lunch for the Angolan ambassador to Germany, General Alberto ‘Kabulo” Ribeiro. Ribeiro is considered to be close to the powerful Angolan minister for military affairs, General Manuel Hélder Vieira Dias ‘Kopelipa”.

The German probe has apparently identified three suspects in the Angolan matter, though the investigation is considered to be on shaky legal ground given that no deal has yet been struck.

Two sources told the M&G that in September last year German prosecutors offered TKMS a plea bargain on the South African deal that included a large fine and an offer to drop the Angolan probe.

It is understood that TKMS rejected the offer. The company has always maintained its innocence, but observers say TKMS probably also balked at an admission of guilt which could trigger huge penalties in terms of the supply agreements for the South African Navy.

The South African contracts make provision for a penalty of up to 10% of the contract price if a seller or its representatives are convicted of corruption.

Kamerman’s revolving-door move from managing the acquisition process for the buyer to hired gun for the seller, TKMS, is also highly controversial.

The supply contracts make provision for an eight-year ban on sellers employing any South African National Defence Force member who played a role without the written consent of the chief of the SANDF.

Kamerman’s TKMS employment fell within this period and the navy has confirmed that no such permission was granted to him.

Attempts to get the ministry of defence to explain why no action has been taken regarding this breach in the supply contract proved fruitless.

In response to M&G questions, TKMS confirmed that the Düsseldorf public prosecutor had been conducting ‘preliminary investigations” relating to the Angolan matter since mid-2006. ‘The prosecutors are investigating allegations of a violation of international anti-corruption law. Searches have been conducted as part of these preliminary investigations.”

It said that while the investigations were aimed at ‘a number of company employees”, members of the executive board were not among them.

‘We have a high level of interest in the complete clarification of the allegations and have formed a work group which is examining them with the help of external experts. We are cooperating fully with the public prosecutor.

‘ThyssenKrupp Marine Systems assumes, based on the internal examinations, that the allegations will not be confirmed by the public prosecutor’s investigations.”