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Arms deal 'riddled with graft'

2007-02-04 22:30
line

Cape Town - Independent Democrats leader Patricia de Lille has just arrived back from Germany and the United Kingdom with what she says is further proof the multibillion-rand arms deal "was riddled with corruption".

De Lille has arrived on the heels of a report in German on-line newspaper, Spiegel, that Chippy Shaik, brother of convicted fraudster Schabir Shaik, was paid a $3m (about R21m) bribe by one of the arms-deal bidding companies.

On her return, De Lille told reporters on Sunday that her delegation, which included Judge Willem Heath, had interacted with authorities in Germany and the UK about their arms-deal investigation.

"The ID wants to commend both the German NPA (nat9onal prosecuting authority) and the UK SFO (serious fraud office) for investigating the allegations contained in the De Lille Dossier.

Investigations at an advanced stage

"The South African government has been sitting on these allegations since 1999 - instead of thoroughly investigating them, it has been in denial ever since," she said.

De Lille said the investigations in both countries were now at an advanced stage.

She said the Germans were considering filing a request for legal assistance from the South African government.

All that now was needed was for the South African government to co-operate with these two countries for the investigation to be concluded, said De Lille .

Judge Heath said certain directors of German companies who were involved in the arms deals already had acknowledged guilt.

"The Germany NPA also informed us that the MD of Daimler Aerospace escaped prosecution for corruption because, at the time of the bribe payments, he could not be prosecuted on this charge in terms of German law.

"Even so, he paid an acknowledgement of guilt to the tune of 15 000 Deutsch marks for embezzlement.

Until 1998, it was not illegal for German companies to pay bribes.

Judge Heath said the fact that the Daimler Aerospace MD had acknowledged guilt was confirmation that he supplied luxury vehicles at heavily discounted prices to 30 South Africans, including Tony Yengeni.

Regarding Chippy Shaik, Spiegel reported on Sunday that internal documents of Thyssen Krupp, a German company that supplied South Africa with war corvette ships, had revealed that Shaik had asked for the bribe in 1998.

Ultimate responsibility

The company deposited the money to a non-existing company in London in 2000.

De Lille said on Sunday that the ultimate responsibility for the South African arms deal rested with President Thabo Mbeki.

As deputy president (at the time), he presided over the cabinet committee responsible for the arms acquisition process.

De Lille said: "We must ask ourselves - what does he have to hide?"

- SAPA

Read more on:    arms deal

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