Marianne Merten and Mungo Soggot
Mystery surrounds the release this week of a document to Pan Africanist Congress MP Patricia de Lille that alleges African National Congress officials took bribes during arms deals.
The document, purportedly signed by “concerned ANC MPs”, bears the hallmarks of an attempt to smear individuals within the party. At the time of going to press, De Lille was expected to call in Parliament for a judicial commission of inquiry into recent arms deals on the basis of the nine- page document.
The report concludes: “In the absence of logical explanations for the armament acquisition, total lack of transparency about the offset proposals, and the industrial’s [sic] notorious corruption makes South Africa [sic] arms purchase programme a matter of enormous concern.”
The document accuses ANC MP Tony Yengeni of having received money for a new Mercedes from one of the bidders in the arms acquisition package. It also suggests that other senior officials stand to gain materially from the deals because of their links with local companies involved in arms consortia.
Yengeni denied all the allegations, and said he was paying for his car himself, adding that he had bank statements to prove this.
The report contains no hard evidence to support any of its corruption allegations.
Last November the Cabinet selected preferred suppliers for a massive arms package. It appointed a team to negotiate the package, which has still to be wrapped up. There are suggestions that the document could either be the work of ANC members anxious to scupper the deal altogether or of rival bidders who are not on the shortlist.
The document attacks the logic of the arms deals and suggests that the “countertrade” aspects of the arms deal – agreements in terms of which foreign arms consortia invest in local industry – are disingenuous and designed solely to give political credibility to the deal. It also singles out specific preferred suppliers.
Helmoed Heitman, South African correspondent for Jane’s Defence Weekly, said there are obvious flaws in the document’s analyses of the various bids, including:
l Confusing different categories of aircraft prices. In their attempt to prove impropriety, the authors of the report inconsistently compare prices. It says: “Another aspect in this diabolical conspiracy of an agreement is that the SAAB/Grippen Fighter Aircraft, which normally sells at $32-million per plane, are being sold to South Africa at $65- million per plane.”
Heitman said the document was confusing prices for the Grippen that included back- up systems and equipment with what were known as “flyaway” prices. Heitman said he recently came across a $45-million “flyaway” price for the aircraft in a Swiss book.
l The report goes on to say: “We are purchasing for [sic] German Frigates at a cost of R6-billion. Cabinet had agreed for the purchasing of corvettes.”
Heitman says the ships that have been bought are patrol corvettes, and fit most of the criteria set by the navy and the Ministry of Defence. He says the ship budgets include back-up equipment.
l Heitman is doubtful of the report’s attack on the decision to buy three German submarines. The document says: “We have agreed to purchase three German submarines which will cost R5-billion. If we have considered the Italian proposal we could have saved R2,8-billion.”
Heitman says the report fails to explain that the Italian proposal involved two second-hand submarines, which would have forced the navy to cater for parts and maintenance for two types of submarine.
l In its attack against the German bid, the report says: “The German armament industry floated [sic] the United Nations arms embargo against apartheid. Blohm and Voss supplied submarine plans to the South African navy.” Heitman says Blohm and Voss have not made submarines for decades.
The document suggests that a local defence analyst and a foreign businessman conspired to promote the German bid. Both the analyst and the businessman deny ever having met.
Observers said the document could be used to highlight attempts to squeeze more generous “countertrade” proposals out of the arms deal. The report complains that the countertrade deals have been subject to confidentiality agreements, but does not note that the deals will become public when the final contracts are signed.
Archbishop Njongonkulu Ndungane has called for an investigation into “weapons acquisition and offset processes”.
l One of the officials named in the report, Jayendra Naidoo, was faxed a copy of the document. He called a press conference after the Mail & Guardian had gone to print.