/ 16 December 2003

Arms deal architects give up millions

The main architects of the South African government’s controversial multi-billion rand arms deal have agreed to give up R100-million they made from contracts arising from the deal, a Johannesburg newspaper reported on Monday.

The Citizen reported that former Armscor boss Ron Haywood, present Denel director Major-General Ian Deetlefs and the estate of the late minister of defence Joe Modise made millions from the arms deal. They also stood to make more from offset deals Modise arranged.

Quoting Shaun Rai, a director of Dynamic Cables, the newspaper reported that the three have agreed in an out-of-court settlement to forego 12-million shares in Dynamic Cables. The shares are worth about R124-million.

Raj confirmed that Scorpions investigators had been to his offices to ask questions and seize documents, but Scorpions spokesperson Makhosini Nkosi said his office’s new policy was to make no comment on on-going investigations. – Sapa