Britain’s biggest weapons manufacturer, BAE Systems, paid millions of pounds in secret commissions to obtain a huge UK taxpayer-backed contract to sell Hawk jets to South Africa.
The British government has confirmed the payment, which will fuel the ongoing row about corruption allegations faced by BAE all over the world.
The arms firm refuses to disclose the identity of its confidential agent in South Africa, and the Department of Trade and Industry (DTI) admits it does not know who is to receive the money, despite providing loan guarantees for the £1,5-billion (about $2,47-billion) deal.
The commission could be more than £160-million (about $264-million) , if it is in line with similar payments in the past.
The DTI’s export credit guarantees department (ECGD), which approved the deal, refused to reveal the amount paid but said it was ”within acceptable limits”.
Patricia Hewitt, the trade secretary, said in a parliamentary answer to Plaid Cymru member of Parliament (MP) Simon Thomas: ”ECGD’s application process requires certain details of agents’ commission to be disclosed to the ECGD… Due diligence procedures were followed and no irregularities were detected.”
But a former South African politician who was forced to resign after protesting about the Hawk deal said the revelation ”fuels the allegations that there was serious corruption in the deal, which have never been properly investigated”.
Andrew Feinstein, a former MP for the ruling African National Congress (ANC), said: ”In the interests of public accountability, the British and South African governments have a responsibility to give full details of who the agent was and what their role in the deal was.”
Last month, the Guardian revealed allegations that Joe Modise, then South African defence minister, received a £500 000 ( about $826 000) bribe, and that cash also went to the 1999 election fund of the ANC. South African government documents show Modise intervened to prevent a rival Italian firm, Aermacchi, winning the contract.
Payments to foreign public officials have been outlawed in Britain since last year.
But the ECGD appears to have no mechanism to monitor where the commission goes on the Hawks. Although the deal was signed in 1999, payments are likely to extend for several years over the delivery period of the aircraft.
BAE said: ”We have nothing further to add to the parliamentary answer.” – Guardian Unlimited Â