The Scorpions are still investigating allegations of corruption linked to former minister of defence Joe Modise, who died in 2001.
This has emerged in the wake of a confirmation by British defence giant BAe Systems that it paid a success fee to a local agent. The commission flowed from BAe’s successful bid to sell fighter aircraft to South Africa.
Neither BAe nor the aerospace consultancy that received the commission, Osprey Aviation, was prepared to disclose the amount, but both denied the payment had been in any way corrupt.
However, the head of the Osprey Group, Richard Charter, played an important role in lobbying the African National Congress and Modise ahead of the selection process which led to BAe and Sweden’s Saab being chosen to supply the Hawk jet trainer and the Gripen fighter. The preferred bidders were announced in November 1998.
Charter chaired BAe Systems South Africa, established in 1997, as well as the Airborne Trust, established in 1995 to assist veterans of the MK Military Veterans Association (MKMVA), whose patron was Modise.
In March 1998, the Airborne Trust, BAe and MKMVA signed a memorandum of understanding at ANC head-quarters in which BAe pledged to donate R4,5-million for the development of an industrial park that would benefit veterans.
In May 1998, Charter, representing BAe and the trust, announced the creation of a bursary fund to pay for research into the history of the ANC. The announcement was made at Parliament at a function attended by Modise and other senior ANC figures.
The Mail & Guardian has established that the Airborne Trust also paid for a trip to the United Kingdom by Modise, which he declared in his 1998 declaration of gifts.
Charter told the M&G his role had been blown out of proportion — as had the commission paid to his company.
”Our role as agents for BAe was declared from day one and our percentage was stated in the bid document.”
Payment of a success fee was not unusual at all, he said: ”The whole of the industry is based on that — agents get a commission, whether you are selling motorcars or airplanes.”
He said his role was as an advisor rather than a lobbyist: ”I’m not well connected with the ANC. In fact, there was a debate early on as to whether we were the right people to represent BAe.”
Charter said he had never been approached by the investigators probing aspects of the arms deal and said given the straightforward nature of his role he ”would be suprised if they had any questions for me”.
Modise resigned his post as defence minister in 1999 to take up a position as chairman of Conlog Holdings, a group that was slated to benefit from BAe industrial participation obligations under the arms deal.