More arms officials admit to getting discounted cars
Evidence wa ka Ngobeni
Ron Haywood, the head of Armscor and one of the most influential players in the arms deal, is the latest senior figure to appear on the “Yengeni” list senior politicians and civil servants who got discounts on luxury cars from DaimlerChrysler South Africa or its sister arms technology company, European Aeronautic Defence and Space Company (EADS).
Haywood is chair of Armscor, the government’s official arms procurement agency that, together with the defence department, masterminded the R50-billion arms deal.
Armscor spokesperson Minah Sindane confirmed this week that Haywood received a discounted second-hand Mercedes-Benz S210 estate car, registration 000RFH GP in November 1999. Sindane said Haywood had negotiated the deal with the marketing manager of DaimlerChrysler South Africa, Chris van Olst.
Sindane said Haywood bought the car in cash, but could not disclose the amount. “I think that people should respect his privacy and accept that he cannot disclose such information in the media. He can only disclose it to the investigators [of the arms deal],” she said.
The list of leading players in the arms deal who have received discounted cars from EADS includes African National Congress chief whip and former chair of Parliament’s defence committee Tony Yengeni, South African National Defence Force chief Siphiwe Nyanda and Vanan Pillay, the former national industrial participation programme director in the National Department of Trade and Industry who helped organise the “counter trade” investment linked to the arms deal.
The list also includesSouth African National Defence Force air force chief Roelf Beukes, former Gauteng premier and business magnate Tokyo Sexwale, and the former chair of the parliament’s public enterprises committee, Mandla Msomi, who is also embroiled in allegations of leaking secret government information to a Malaysian business tycoon.
EADS, which was formed from the merger of DaimlerChrysler Aerospace, Aerospatiale Matra of France and Constucciones Aeronauticas of Spain, benefited from the arms deal through subcontracts awarded to companies in which it has a stake, for radar systems for the navy’s new corvettes.
The arms deal package is now the subject of a major probe by three state law-enforcement agencies. This week it emerged that investigators in Munich, Germany, were also probing the conduct of EADS and its alleged kickbacks to leading political figures.
EADS previously admitted to giving discounted luxury cars to more than 30 VIPs involved in the arms deal. EADS also said it had made profits from the sale of the vehicles to the VIPs.
This week, however, it emerged that EADS had recorded huge losses from the sales. Discounts for politicians ranges from 7% to more than 40%. A number of senior government officials fingered in the arms deal scandal including Yengeni have since been asked to explain why they received such huge discount from a firm that won contracts in the arms deal.
The Public Service Commission this week also launched a probe into the discounted cars given to public servants. The commission said public servants are supposed to adhere to the government’s code of conduct and its investigation will seek to establish if there are any conflicts of interest arising out of the discounted car sales.
Beeld reported on Thursday that a senior finance department official currently working at the World Bank in Washington was also questioned “amid great secrecy” by forensic investigators via satellite in connection with the arms deal.
Beeld said it was unclear why Roland White, who was in charge of financial negotiations connected to concluding arms deals, international financial institutions payment requirements and compiling repayment requirements of arms loans, was questioned.
White had earlier indicated his willingness to testify at the public hearings into the arms deal. He was not called as a witness.
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