AFP and OWN CORRESPONDENT, Cape Town | Thursday
A TOP South African defence official this week denied that nepotism played a role in awarding the French company Thomson CSF an arms sub-contract late last year.
Chippie Shaik, the chief director of procurement in the defence department, told parliament’s public accounts committee that because his brother is linked to Thompson CSF, he recused himself from discussion on that particular contract.
Thomson CSF won the bid to supply management technology for four Corvette patrol vessels that will be bought for the South African Navy, part of a South African arms overhaul.
Government late last year signed arms deals with British, French, Swedish, Italian and German consortiums to refurbish the military with 72 fighter aircrafts, 30 helicopters, three submarines and four patrol ships.
However, after reports that there was corruption in the awarding of certain contracts, Auditor-General Shauket Fakie, singling out the Thomson CSF deal, ordered an inquiry by the public accounts committee.
Shaik said he had submitted his recusal in writing before the contract was discussed.
“It was presented to the ministers and also recorded that a conflict of interest does exist,” he said.
“I can unequivocally state that the [tender] process does not allow for any individual to influence the process to this magnitude.”
Shaik’s brother, Shabir, is the director of African Defence Systems, which has been bought by Thomson CSF and also the employer of Chippie’s wife, Zarina.
The French company won the bid over a local company after the German Frigate Consortium, from whom South Africa is buying the vessels, insisted on adding a R40m risk premium to its price, if the local product were to be accepted.
Several other aspects of the arms package came under intense scrutiny by the public accounts committee this week. African National Congress MP Andrew Feinstein told Shaik he found the informal way conflicts of interest were treated in the deal “astonishing”.
“I find it very worrying,” he said.
The committee has demanded further documentation on a number of aspects so that it can further investigate the corruption claims.