Thabo Mbeki ignored arms deal advice

2014-05-18 10:00

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Before they finalised a single contract, former president Thabo Mbeki and some of his most powerful Cabinet ministers were explicitly warned the arms deal would be of no benefit to South Africa’s economy.

Analysts also warned the ministers committee considering the deal that the national investment projects – which were supposed to create thousands of jobs for South Africans – were not realistic.

Mbeki, his minister of finance Trevor Manuel and deputy minister of defence minister Mosiuoa Lekota are all expected to take the stand in the first week of June at the Seriti Commission of Inquiry into the multibillion-rand deal. Ronnie Kasrils, who served as deputy to the late defence minister Joe Modise, will also testify.

The analysts warned that:

» South Africa’s government was ­already “edging towards the levels of borrowing and of debt service obligations which the international markets regard as the maximum acceptable, even without the defence procurements”; and

» There was no way to ensure the contractors would meet their obligations and actually create jobs in South Africa.

» Get City Press newspaper today for the full story.

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions. publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24


Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.