OWN CORRESPONDENT, Johannesburg | Sunday
TWO military hardware companies are planning to sue South African arms manufacturer Armscor for millions of dollars in separate cases – which, they allege, implicate several former and current top-ranking defence officials in high-level corruption.
E-tv news reported that Quantam International Services Limited, with corporate offices in the British Virgin Islands, planned to sue Armscor for $312m, while the head of local company CCII is also ready to mount a court action.
The Quantam suit was confirmed by company representative Richard Parker, who said lawyers had already drafted the summons.
Quantam claims it concluded an agreement with Armscor for the purchase of nine surplus C-160 Transall aircraft and millions of dollars’ worth of spares. However, four days before the money was to be paid the deal collapsed.
Information about the alleged corruption has been forwarded to several South African investigative agencies, Parker’s partner Roy Segers told e-tv.
In a separate case, Cape Town-based businessman Richard Young, who turned to public protector Selby Baqwa for relief, has been advised by Baqwa to go to court.
Young heads CCII systems, which was originally identified by the South African navy as the preferred supplier for the integrated management system for four new corvettes.
Young claimed the contract was awarded to another company with links to former defence officials.
He also forwarded his information to an anti-corruption unit and the auditor general, who in a special report to Parliament last year recommended that his grievance be the subject of a separate forensic audit investigation.
Young plans to sue for damages of between R100m and R200m. He last year said he had incontrovertible proof of irregular acquisition practices. – AFP