/ 5 April 2007

Armscor ‘not aware’ of what’s in ammo report

Armscor has not seen the final version of a ”top secret” report detailing its alleged international sale of small arms ammunition, it emerged on Wednesday.

It became aware of the contents of the November 2005 report, reportedly commissioned by Secretary of Defence January Masilela ”in the media”, said Armscor spokesperson Bertus Celliers.

”I am personally not aware of what is in that report,” he said.

The document was circulated only to Masilela and Military Police Agency head General J Ledwaba, Business Day reported on Wednesday.

The probe reportedly found that Armscor sold millions of rounds of ammunition for AK-47 assault rifles, and R-4 and R-5 rifles to a German firm and that the ammunition — which was not demilitarised — flooded the United States and was advertised online.

This was despite a 1997 decision by the Cabinet to destroy surplus small arms ammunition.

It was also said to have found that Ratel infantry assault vehicles were sold with their top-secret codes and algorithms intact.

In a March 25 article City Press reported that in its final report, investigators First Consulting found a blatant violation of regulatory and procedural processes.

It held responsible suspended conventional arms control director Fred Marais and senior Armscor managers.

Celliers said Armscor learnt of the Ratel allegations in a preliminary report by First Consulting in February 2005.

It suspended its chief executive officer Sipho Thomo, general manager of business Dr Jan de Necker, and executive manager of defence materiel disposal Boet van Staden, pending its own investigation by Gobodo Forensic and Investigative Accounting.

In this probe, Thomo was absolved of irregularity and his suspension lifted, as were those of De Necker and Van Staden.

As no evidence of their wrongdoing could be found, no further action was taken as far as the preliminary report was concerned, said Celliers.

The final, ”top secret” document proposed an overhaul of the Directorate for Conventional Arms Control, which oversees arms control legislation and protocol but has been implicated in issuing the export permits for the ammunition, reported City Press.

According to Business Day, it recommended criminal action against anyone ”in any way guilty of any indiscretion or criminal liability”.

On Wednesday night, Armscor was still considering its response to the allegations in First Consulting’s final report. – Sapa