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Unfinished condoms for arms
01/12/2001 09:27 - (SA)
Johannesburg - The financing of the controversial arms deal has resulted in some bizarre agreements, including the establishment of a condom plant by a German steel conglomerate.
The deal is the largest since the
end of apartheid and the counter-trade provisions require
all those providing the arms to buy South African goods or invest
in South Africa to a total amount of US$15 billion by 2011.
German steelmaker Ferrostaal, through one of its investment
subsidiaries, owns a 15% stake in a company making condoms
with Cologne-based Kondomi, and now Kondomi plans to produce around 100 million condoms a year for the African market.
Unfinished condoms are to be imported from Germany to the plant at East London, where another famous German company has its South African plant - DaimlerChrysler. Here the finished goods will be made up and packed.
Ferrostaal is a member of the consortium that is building three submarines for the South African navy at a total cost of US$857 million.
Mondi and 200 jobs
Sweden's Saab and Britain's BAE Systems, who are providing
Gripen fighters and Hawk trainer aircraft respectively, have also
come up with unusual schemes to comply with the terms of the deal.
A consortium is investing R600 million in the timber concern
Global Forest Products (GFP), founded at the beginning of the year, and
the two aircraft manufacturers are providing R55 million in
capital.
GFP, which owns forests and plantations as well as three saw
mills, is expecting export contracts over the next 10 years
totalling around R5 billion.
The concern is a joint venture, with the Washington-based Global
Environment Funds owning 51% and the South African paper
manufacturer Mondi the rest.
GFP will prevent a saw mill in Mpumalanga from closing
and thus save around 200 jobs.
Needing good news
Proudly presenting the scheme in front of the cameras at a presentation in Mpumalanga on 20 November, Defence
Minister Moisuoa Lekota announced other investments in a range of
projects.
The government is in need of positive news, as the scandal over the project refuses to die down. Defence acquisitions chief Chippy Shaik had been suspended from his post earlier this month.
The recently published report into the deals alleges conflicts of interest was met with criticism and close scrutiny.
'Report censored'
United Democratic Movement leader Bantu Holomisa on Friday
called for Auditor-General Shauket Fakie's resignation in the wake of media reports that the executive was given power to influence the arms deal investigation.
Following revelations last week that Cabinet had influenced the drafting of the preliminary and final arms reports, the UDM was "shocked to learn of new allegations that the investigation itself was indeed managed by Cabinet", Holomisa said in a statement.
Last week, the Mail and Guardian reported that the executive
invoked sections of the Special Defence Account Act to give
government the chance to vet both the auditor-general's September
2000 preliminary report and the joint investigative team's report
tabled in Parliament earlier this month.
The Act gave the executive the power to censor the report for
reasons of "national interest".
Fakie has denied that "substantial" amendments resulted.
Steering committee kosher?
Friday's Mail and Guardian reported, however, that the executive arm of government from the start placed itself in a position to
influence the course of the investigation itself.
This included the establishment of an "audit steering
committee", which included, among others, the recently suspended
Shaik.
The existence of this "steering committee" raises serious
questions about the extent to which Fakie's September 2000 report
and this month's final report were "steered", the Mail and Guardian article said.
Holomisa said the fact that people suspected of wrongdoing, such as Chippy Shaik and trade and industry department arms deal
negotiator Vanan Pillay, reportedly served on the committee,
brought the whole investigation into disrepute.
Instead the terms of reference appeared to have been determined by cabinet through this "steering committee", Holomisa said.
"The auditor-general must resign if media reports regarding this 'steering committee' are confirmed," Holomisa said.
A spokesperson for Fakie said on Friday he was on official
business in Europe and could not be immediately reached for
comment. He was expected back in the country on Monday.
- Sapa/DP
- SAPA
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