Paul Kirk
Between 1995 and 1996 the Ministry of Defence conducted a strategic defence review a stocktaking of the equipment the South African National Defence Force needs to acquire. The review presented a “force design” that amounted to little more than a wish list because, as the Department of Defence conceded, funding was unavailable.
In March 1998 the force design is presented to Parliament as just that a wish list which Parliament approves. The Institute for Democracy in South Africa subsequently says Parliament did not approve increased defence expenditure much less the R60-billion arms deal that resulted.
In December 1999 the government nevertheless enters into transactions to buy submarines, corvettes, helicopters, trainer jets and fighter jets. More than 100 tanks originally part of the Parliament-approved force design form no part of the transactions, making the government’s claims that it would acquire only what Parliament had approved hard to defend.
In September 2000 the auditor general produces a report on the transactions. This in turn forms the basis of a report by the Standing Committee on Public Accounts that is finalised in October 2000. But between the finalising of the arms-purchasing contracts and the September 2000 auditor general’s report, a number of serious scandals hit the press predominantly in the Mail & Guardian and noseweek magazine.
May 26 2000 The M&G breaks the news that African Defence Systems (ADS) and Futuristic Business Solutions (FBS) have won lucrative contracts in the arms deal which has now increased in price to R32-billion. The M&G is the first paper to reveal the links between defence acquisition chief “Chippy” Shaik and ADS, which is run by his brother and also employs Chippy’s wife, Zarina. The report, by Ivor Powell, also points out that ADS directors Tshepo Molai and Lambert Moloi are directors of FBS and both are close to former defence minister Joe Modise.
June 2 2000 The M&G breaks the news that the Office of the Auditor General has uncovered prima facie evidence that “good procedures and good process were not always observed in respect of the weapons deals”.
August 18 2000 The M&G breaks the news that Armscor director Keith Mokoape a former head of the African National Congress’s intelligence department is set to make a fortune out of the arms deal. Mokoape had just been appointed chairperson of Applied Logistics Engineering a merger of FBS and defence logistics outfit Log-Tek, a company he had been a director of since 1998. Like Chippy Shaik, Mokoape claimed to have recused himself from meetings at which Log-Tek was discussed.
In October 2000 the Standing Committee on Public Accounts (Scopa) calls for an inquiry into the deal. It also apparently asks that Judge Willem Heath’s special investigating unit be included in the probe. This request then becomes the subject of debate as ANC members of Scopa subsequently deny it was their intention specifically to ask for Heath’s inclusion in the probe. The Heath unit is the only investigating body with the power to rescind state contracts if it believes the state has been the victim of any form of skulduggery.
December 2000 sees Gavin Woods, the chair of Scopa, write to the Office of the President asking for the Heath unit to be involved in the investigation. For Heath to become involved the president needs to sign a proclamation.
January 12 2001 The M&G reveals that Schabir Shaik the brother of Chippy Shaik has been a director of the South African arm of Thomson CSF since 1996. Thomson CSF is a giant French arms company that has been implicated in several corruption scandals internationally. Thomson is at the time estimated to hold R400-million in contracts relating to the purchase of corvettes for the navy.
February 2 2001 The M&G reports that Andrew Feinstein, chairperson of the ANC public accounts committee study group, has been replaced by Jeff Doidge, the hardline ANC deputy chief whip. Feinstein had challenged several issues surrounding the arms deal.
On being ousted he says: “Defending the ANC does not imply defending possible corruption by any individuals within the party.”
Feinstein had consistently backed Scopa chair Gavin Woods (of the Inkatha Freedom Party) in calling for a well-resourced and thorough investigation into the arms deal.
On February 28 2001 ANC members of Scopa adopt a motion that the 14th report of Scopa did not specifically call for the special investigating unit to be involved in the probe. Heath is not included in the arms deal probe. Shortly afterwards the feisty judge is axed from his position as head of the investigating unit after a Constitutional Court ruling that a judge cannot head the unit. As the probe begins the media continue to unearth more controversies surrounding the deal.
March 2 2001 The M&G reveals that British Aerospace donated millions to the MK Military Veterans’ Association shortly before being awarded contracts to supply fighter trainers and fighter aircraft.
March 25 2001 The Sunday Times reveals that Tony Yengeni, chairperson of the parliamentary defence committee, has obtained a cut-price Mercedes Benz ML320 from an arms company. The Scorpions later arrested Yengeni on corruption charges relating to his acquisition of the luxury vehicle. The Sunday Times goes on in the weeks following to uncover a string of 30 luxury cars sold at cut prices to officials connected to the arms deal.
April 12 2001 Owing to fluctuations in the value of the rand the arms deal now costs an estimated R50-billion.
April 26 2001 The M&G reveals that the Cabinet signed off the arms deal despite an August 1999 report from the Department of Finance that stopped just short of bluntly saying the country could not afford the arms. The report had never been made public and was presented to a Cabinet subcommittee that included President Thabo Mbeki.
The M&G report reads in part: “The government has consistently fudged the issue of the cost of the package. The Minister of Finance, Trevor Manuel, has even criticised Parliament’s standing committee on public accounts for suggesting last year the figure had risen from the initial R29,9-billion to R43-billion despite the fact that the national budget in March also used the latter figure.”
August 10 2001 Pretoria state attorney Caroline Dreyer threatens to bring a gagging order against the M&G after the newspaper obtains minutes of a meeting that clearly show Chippy Shaik did not recuse himself from meetings at which his brother’s arms company was discussed.
August 31 2001 Feinstein resigns from Parliament, saying he fears the National Assembly is becoming sidelined and that elements within the ANC are becoming increasingly intolerant of independent minds. Feinstein says he also fears the government has used its clout to dampen the investigation into the arms deal and that the probe could throw up weak and toothless findings.
November 2 2001 The M&G breaks the news that Italian aircraft giant Aermacchi may sue the government after losing out on the contract to supply trainer aircraft. Documents given to the M&G show that Modise was instrumental in changing tender criteria that resulted in the contract going to British Aerospace rather than Aermacchi, which was earlier evaluated highest.