DA wants arms deal documents

2011-06-27 20:54

Cape Town - The DA will use the Promotion of Access to Information Act (PAIA) to gain access to two reports related to BAE/Saab's compliance with offset obligations under the National Industrial Participation Programme (NIPP).

The request would be submitted to the trade and industry department (DTI), Democratic Alliance spokesperson David Maynier said in a statement on Monday.

In terms of the strategic defence package signed on December 3 1999, BAE/Saab incurred an offset obligation under NIPP.

The NIPP programme, administered by the DTI, required any state purchase in excess of $10m from firms selling foreign products to effectively reinvest in South Africa.

BAE/Saab, who supplied the 24 Hawk and 26 Gripen fighter jets, were obliged, in terms of the contract, to reinvest a total of $7.2bn in South Africa by 2011.

"The DTI is responsible for monitoring the NIPP. However, the department's reports are at best obscure, not least because company names do not appear in the annual report, making it difficult to determine if BAE/Saab were complying with their obligations under the NIPP," Maynier said.

However, two reports commissioned by the DTI suggested that there were problems relating to BAE/Saab's compliance with the NIPP.

"A report, prepared by SAB&T Chartered Accountants, relating to BAE/Saab's involvement in a defence department demilitarisation project, found that 'government was not getting optimal value'.

"Another report, prepared by NAD Auditors, relating to BAE/Saab's involvement in Denel Saab Aerostructures, suggests that there was a failure to meet 'key performance areas'."

Maynier said it was clear that the consultant's reports suggested all was not well with BAE/Saab's compliance with the NIPP.

- SAPA

Read more on:    da  |  david maynier  |  politics  |  military
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