Cape Town | Thursday
THERE was a conflict of interest in the role played by the department of defence’s chief of acquisitions Chippy Shaik, according to the forensic report on the arms deal.
This arose through his brother Shabir’s indirect interests in the Thomson Group and ADS, companies that were awarded contracts for the supply of combat technology for corvettes.
The report says Chippy Shaik declared the conflict of interests in December 1998, but continued to participate in the process that led ultimately to the awarding of contracts to these companies.
”He did not recuse himself properly,” the report says.
It also says Shaik did not apply for or receive the military security clearance required by law.
The report says the involvement of former defence minister Joe Modise in a company that benefited from arms deal offsets was ”extremely undesirable”.
Modise had been actively involved in the procurement process before his retirement.
”Although no evidence of impropriety was found in this regard… such a situation seems extremely undesirable as it creates negative public perception about a process that might otherwise be in order,” the report says.
Parliament should take urgent steps to ensure that high-ranking officials and office-bearers, such as ministers and deputy ministers, are not involved in contracts concluded with the state for a ”reasonable” time after they leave public office.
This should apply both personally and to their involvement in companies.
On the issue of Shaik, the report says the department of defence and Armscor should develop specific rules and guidelines to address conflict of interest issues and ensure that personnel are properly informed on the issue.
Steps should also be taken to ensure particular individuals, regardless of their position, are not tasked with incompatible functions in ”multifaceted procurements”.
”This will prevent a conflict or perceived conflict of interest, which could have a detrimental effect on the overall acquisitions process.”
Meanwhile, the Democratic Party staged a walkout from the National Assembly chamber ahead of the briefing.
The walkout followed a verbal clash between Speaker Dr Frene Ginwala and DP Chief Whip Douglas Gibson, who claimed that the briefing appeared to be ”a glorified press conference”, and that his party wanted no part of it.
African National Congress MPs jeered and chanted as the DP MPs left the chamber, despite Ginwala’s call on them to remember ”this is not a circus”.
The United Democratic Movement announced earlier that it would not attend, saying it was ”a stage-managed public relations exercise”. UDM leader Bantu Holomisa said: ”It can serve no purpose other than the investigation team speaking on behalf of government to a report which has been tampered with by the executive.”
Ginwala said it was important for MPs and members of the public to hear directly from the investigating team about the report. The informal presentation would be followed by formal deliberations in parliamentary committees.
The team — Public Protector Selby Baqwa, National Director of Public Prosecutions Bulelani Ngcuka and Auditor-General Shauket Fakie — began the briefing shortly after 1.30. – Sapa