South African Navy chief Johan Retief says the Navy participation in the tendering process for four corvettes — the first which arrived at Simon’s Town on Tuesday — was above reproach.
Welcoming the arrival of the SAS Amatola from Germany, Retief said he had been asked many times how the SA Navy was approaching the allegations of corruption regarding the tendering process for the vessels.
The arms deal — to provide submarines and corvettes for the Navy and fighter and trainer aircraft for the South African Air Force — has been bogged down in controversy over alleged bribery and corruption.
“I can only speak on behalf of the Navy. I have no mandate to do otherwise. To date, not a single member of the Navy has been prosecuted for any irregularities during the acquisition process. As far as I am concerned, the Navy’s participation in the process has been above reproach.”
He noted that allegations by various subcontractors “are still hanging in the air and have been for the past three years”.
Retief said statements “and counter-statements do not bring us anywhere and the Navy has elected not to involve itself in this war of words”.
The navy chief noted that in 2001, the public protector had advised some of the parties to take their allegations to court.
Asking himself rhetorically if the projects could be cancelled — with three more corvettes scheduled to arrive from Germany next year — he said: “Of course they can. The projects have, however, progressed so far that cancellation penalties will include the total price of the contracts as well as the loss of any counter-trade benefits.”
“It must be kept in mind that in order to afford these projects, the Navy has embarked on a massive disposal programme and the last Daphne-class submarine will be decommissioned on November 28 with its disposal immediately following that.”
“Similarly, the first five strike craft have already been struck down and are being offered for disposal as scrap.”
“Cancellation of these projects will effectively leave South Africa without any maritime defence. The motives of people demanding cancellation of these projects need, therefore to be closely considered.”
African Defence Systems — which has won a systems management subcontract for the combat suite for the corvettes — and arms company C2I2 have been engaged in a war of words over the tender process.
Democratic Alliance MP Nigel Bruce recently produced a letter in the Standing Committee on Public Accounts showing that ADS was allowed to drop its bid from R32,4-million rand to R29,64-million rand, a day after the deadline for final bids.
Auditor General Shauket Fakie, however, said ADS had made a mistake with its figures and had been allowed to change its tender. – I-Net Bridge