/ 11 April 2003

War puts Denel’s Iraq contract at risk

State arms manufacturer Denel faces losing a multi-million rand contract to clear mines in northern Iraq, should the United States take over functions currently under the auspices of the United Nations (UN).

The war in the Middle East country would have serious implications for the work of Denel subsidiary, Mechem, in that country, Public Enterprises Minister Jeff Radebe said, opening debate on his Budget vote in the National Assembly on Thursday.

Mechem has for the past four years been clearing mines in the north of Iraq for the UN, but withdrew staff ahead of the US-led invasion.

”By the time of their withdrawal by the UN, under whose mandate they operate, Mechem’s team consisted of 27 South Africans, 689 local Iraqis, and 180 mine detection-trained dogs.”

All but five of the South Africans had returned to this country and remained on standby to return to Iraq, if called upon by the UN.

The remaining South African staff were currently waiting in Jordan and Cyprus.

The Iraqi and Kurdish members of the team — who received three months salary in advance — and the dogs remained in Iraq.

”Not only has this important humanitarian activity been severely disrupted, the current invasion has turned back the clock considerably, with the prospect of even greater horror for the local population as landmines, cluster munitions, and other unexploded bombs litter the Iraqi countryside,” the minister said.

Radebe’s special adviser, Dr Ian Phillips, told reporters prior to the speech the decision of who should administer Iraq after the war was critical for the future of the contract.

”If the US decides to take over the work of the UN, then obviously it will have a bearing (on the contract).”

Mechem had earned about $10-million (about R80-million) since 1999 clearing almost 10-million square metres of landmines and exploded ordnance dating back to the first Iraqi war of the early 1990s.

The company — described as a world leader in de-mining — had also been involved in operations in Bosnia and Angola, he said.

”With the war in Iraq it is very difficult to predict the future of the contract, and it is, therefore, also difficult to say whether and when the programme will proceed following the cessation of hostilities,” the department said in a statement. – Sapa