Swedish aircraft manufacturer Saab and British-based BAE Systems exaggerated planned offset investments in order to sell their aircraft to South Africa, Swedish Radio said on Monday.
The public broadcaster said it analysed the number of investments pledged by the companies, but found that most of them never came to fruition.
South Africa bought 28 Swedish-built JAS Gripen — the first export order for the fighter — and 24 British Hawk trainer jets for its air force in 1999. The two manufacturers had promised offset investments up to 2001, mostly in civilian industry projects, worth 77-billion kronor ($11,3-billion), or four times the value of the aircraft order.
However, 21 of the 26 projects on the list Saab presented to the South African government have since been rejected or terminated, and Saab has been forced to come up with new projects, Swedish public radio said.
Saab denied any wrongdoing. Linden Burns, a representative for Saab and BAE in South Africa, said it does not matter what was on that original list.
”What matters is that we are delivering the benefits that we said we would deliver. We are fulfilling our obligations,” Burns said.
He said it was not a matter of lying or trying to deceive South Africa’s government.
”The real nature of business is that sometimes ideas work, sometimes they don’t work,” he said.
The JAS Gripen is a joint venture between Saab and BAE Systems.
The first Gripen fighter for the South African Air force entered the final assembly stage at Saab’s factory in Sweden on January 11.
The first flight of the aircraft is scheduled for November, after which it will undergo a period of ground and flight testing in Sweden before delivery to South Africa in 2006. Included among the 28 fighters ordered by South Africa are nine two-seaters and 19 single-seaters, which will be delivered between 2008-2012. – Sapa-AP