/ 18 February 2004

Judgement reserved in arms deal case

Judgement has been reserved in the Cape High Court matter where an NGO is trying to overturn the government’s decision to enter into the multibillion-rand arms deal.

Legal teams finished arguments just before 3pm on Wednesday.

The matter, which started on Tuesday, sees Economists Allied for Arms Reduction-South Africa (Ecaar-SA) challenge a decision by Finance Minister Trevor Manuel to enter into foreign loan agreements that finance the deal, arguing that Manuel ”failed to apply his mind” before signing them.

Manuel is listed as the second respondent, which includes President Thabo Mbeki, the government of South Africa and Parliament’s Speaker, Frene Ginwala.

The main thrust of Ecaar-SA’s case is challenging the ”rationality” of Manuel’s decision to enter the foreign loan agreements, accusing the minister of ignoring warnings and advice.

It says the government could have spent the money on improving socio-economic conditions for millions of South Africans, instead of on an arms procurement package.

But the government’s legal team has countered, saying Manuel’s decision to enter the said loan agreements were ”realistic and practicable”.

They also argued that Manuel could not have ”ultimate responsibility” as suggested by the applicants, because he had merely acted on an initial Cabinet decision to pursue the arms deal.

The matter was argued before judges Andre Blignaut and Ntlupheko Yekiso. — Sapa

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