Manuel: Cancelling arms deal detrimental

2014-06-11 14:50
Trevor Manuel (Beeld)

Trevor Manuel (Beeld)

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

kalahari.com

Pretoria - Cancelling loans secured for financing the 1999 arms deal would hurt the South African economy, former finance minister Trevor Manuel said on Wednesday.

"I would like to give this commission (Seriti inquiry) my view on the impact of the loans. In a nutshell, not only would South Africa' credit rating be impacted, but all credit facilities obtained in the global credit markets," he said.

"Credit markets everywhere are determined by trustworthiness in the ability to pay."

The ripple effect of such a cancellation would extremely hit the country's poor who rely on public services.

"We would not be able to raise any deficit financing in the country. The consequences of the cancellation would have an effect on the perceptions of constitutional continuity," Manuel said.

"I am not a minister any longer, but I believe that Constitutional continuity is of the essence."

He said a failed litigation process by arms deal critics, brought against him as finance minister, proved that the courts were satisfied that acquisition was necessary.

"I believe that the selected package was affordable and within government's fiscal envelope. It is important that as finance minister I was part of a collective," said Manuel.

"I wasn't party to deciding on the selection of the equipment. Treasury doesn't decide on pharmaceuticals to be dispensed at clinics, neither do we decide the curriculum content in education."

Earlier, Manuel said a mandate by former president Nelson Mandela to his Cabinet to properly equip the defence force resulted in the controversial arms deal. Manuel will be cross-examined at the Seriti inquiry on Thursday.

Zuma appointed the commission in 2011 to investigate alleged corruption in the multi-billion rand deal.

Government acquired, among other hardware, 26 Gripen fighter aircraft and 24 Hawk lead-in fighter trainer aircraft for the air force, and frigates and submarines for the navy.
- SAPA
Read more on:    nelson mandela  |  trevor manuel  |  military  |  arms deal
NEXT ON NEWS24X
SHARE:

Read News24’s Comments Policy

24.com 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
79 comments
Add your comment
Comment 0 characters remaining
 

Inside News24

 
/Wine
 

You HAVE to see this MTB Tsunami Fip!

You might not know what a Tsunami Flip is, but just watching this will turn your eyes into saucers. Check out this first-ever MTB Tsunami Flip in contest here.

 
 

Where were you when you last felt alive?

Bear Grylls’ top 10 things kids should do outdoors
Mountain unicycling – say WHAT?
Top tips to ensure you’re running right
Stand-up paddle boarding a great workout

Jobs in Cape Town [change area]

Property [change area]

Travel - Look, Book, Go!

Magical Massinga

Spend 5 nights at the gorgeous Massinga Beach Lodge in Mozambique and only pay for 4 from R13 220 per person sharing. Includes return flights, accommodation, transfers and romantic turndown. Book now!

Kalahari.com - shop online today

Deal of the week!

20% off Afrikaans books, music and DVDs. Offer valid while stocks last. Shop now!

Save up to R1000 on Hisense smartphones!

View the large range of Hisense smartphones. Buy today and save up to R1000!

Hot gaming titles – available for pre-order!

Call of Duty: Advanced Warfare Day Zero Edition, Far Cry 4, Grand Theft Auto 5 and more. Pre-order now!

Get a free eBook

Buy 3 eBooks and get the cheapest FREE. Offer valid while stocks last. Shop now!

Bargain box – 60% off

Reduced prices, very limited stock. While stocks last. Hurry and shop now!

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

Horoscopes
Aquarius
Aquarius

Pushing too hard and doing too much may have left you feeling drained and overwhelmed. You may need time out to recharge and reset...read more

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

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 24.com network.

Settings

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.