Government stalls on arms deal probe

The Sunday Independent says there has been no progress on the SA Government’s side regarding a probe into the arms deal, while a German request for help is getting nowhere fast and a police investigation into alleged discounts to VIPs for luxury vehicles is still not completed. It has also emerged that a lawyer acting for one of those under scrutiny by German investigators has been lobbying the Justice Department and met Brigitte Mabandla, the Minister of Justice, late last year. Claims of corruption in the arms deal have seen Tony Yengeni, the former ANC Chief Whip, and Schabir Shaik, ANC leader Jacob Zuma's former financial adviser, convicted. Zuma is set to go on trial for corruption later this year. But allegations that other senior figures were involved in corrupt deals have largely been ignored by South African investigators who are probing claims that company ThyssenKrupp bribed SA officials and politicians to secure the sale of warships to the SA Navy. But it has now emerged that the SA Government stalled, saying it needed more details. But, according to Arno Neukirchen, the German prosecutions spokesperson, the German investigators have long since responded to the South Africans and were still awaiting an answer. Allso awaiting an answer is Patricia de Lille, the Independent Democrats leader, who a year ago laid criminal charges against 29 prominent South Africans who allegedly received discounts on luxury cars linked to the arms deal. Full report in The Sunday Independent

Pressure is mounting on Mbeki and his Cabinet to set up an independent inquiry. Revelations from German investigators who believe millions of dollars in bribes were paid to top officials and politicians is causing pressure to increase within the ANC and beyond for Mbeki to disclose exactly what he knows, notes The Sunday Independent. Besides the German probe, Sweden and Britain are also investigating payments of more than R1bn as ‘commissions’. Names mentioned as being under scrutiny include Joe Modise, the former Defence Minister (who has died), and several top business figures. The Cabinet came to the defence of Mbeki, saying: ‘The allegations against the presidency are accordingly dismissed as baseless, mere speculation and gross mischief as they bear no relation to the truth.’ But, Eddie Trent, the DA spokesperson on the arms deal, said Mbeki had no choice but to appoint an independent commission of inquiry. Trent had asked Mbeki about claims that the president had repeatedly refused to assist the Scorpions' investigations. Mbeki previously attempted to duck DA questions on whether he had met representatives of French arms company Thomson-CSF in 1998 and what assurances they had been given. Full report in The Sunday Independent

The rumours, revelations, leaks and lies about who got what in commissions, bribes or other incentives continue to undermine the country’s international reputation, notes a Sunday Times editorial, which reiterates the call for a public inquiry. Mbeki is being dragged into the conflict on the basis of allegations which, if not tested, could destroy his legacy and fuel the internecine struggle that already claims more time from those in and aspiring to government than the job they purport to do. We know now that there was massive corruption in the award of the main tenders and in the competition for secondary contracts. What we don’t know is who was paid, how much and by whom. Full Sunday Times editorial

Mbeki’s role is also questioned by Andrew Feinstein. Writing in the Sunday Times he says suspicion has increased after German investigation said that a very senior ANC politician was a beneficiary of successful German bidders’ largesse. They decline to name the politician. Media reports have revealed that Tony Georgiadis, a shadowy businessman with links to Joe Modise and Mbeki, paid money into ANC coffers and a number of charities after receiving 22m from Thyssen Krupp, a German company involved in the German Frigate Consortium (GFC), which was a beneficiary of the deal. According to this and other reports, a major part of the amount was allegedly channelled to South African officials and Cabinet Ministers. As chairman of the Cabinet sub-committee tasked with overseeing the deal, Mbeki was a key decision-maker in the process. Full Sunday Times report

Opposition parties have rejected Feinstein’s proposal that instead of facing criminal charges, offenders should ‘return ill-gotten gains’ and be disqualified from public office. The DA said that the notion of amnesty would have serious consequences, according to Business Day. ‘We believe that such an amnesty for a few of the ANC elite would be tantamount to condoning theft from the SA public, and would set an appalling precedent, allowing unscrupulous politicians to proclaim amnesty for themselves in the future before leaving office,’ said Trent. The Independent Democrats (ID) said it would consider ‘private prosecution’ if the amnesty went ahead. Full Business Day report

But more on the arms deal may emerge following the Scorpions decision to reopen its investigation in what may be its last major assignment. The Mail & Guardian Online reports that it has established that the Scorpions recently registered an investigation into SA's multibillion-rand purchase of jet trainers and fighter jets from British arms giant BAE Systems and Sweden's Saab. This contract, worth R30bn at the current exchange rate, was the single largest purchase of the entire arms procurement. The ‘commissions’ BAE paid, dwarf the R500 000 annual bribe ANC president Jacob Zuma allegedly took from French arms firm Thales and the $25m (R200m) in commissions German prosecutors claim were partly paid to SA officials and Cabinet Ministers to clinch the warships contract. The Scorpions' formal declaration of an investigation indicates that they believe South Africans were bribed and could be prosecuted. It is unclear who the Scorpions will target. Investigations at the start of the multi-agency arms-deal probe five years ago suggest the focus will be on the agents and the middlemen who received vast ‘commission’ payments – and on the officials and politicians who may have benefited through them. These include Modise's former adviser, Fana Hlongwane, late BAE agent Richard Charter, British-Zimbabwean arms dealer John Bredenkamp and former Anglovaal chairperson Basil Hersov. Modise's intervention in the bidding process and his proximity to the agents suggest his already tarnished reputation may be further dented. Full Mail & Guardian Online report