New claim in arms probe

The Hawks are under pressure to expand their investigation into the arms deal scandal to include an allegation that German arms manufacturer Ferrostaal paid R300-million in bribes to secure contracts to supply submarines.

Themba Godi, chairman of parliament's public accounts committee, which has been probing the arms deal for years, said he was taken aback by the revelation in a German newspaper.

He said he would be writing to the head of the Hawks, Anwar Dramat, to ask that he include the allegation in his investigation.

Sueddeutsche Zeitung said the claim was made during an internal audit of Ferrostaal carried out by US-based law firm Debevoise and Plimpton.

In the article, company spokesman Maria Lahaye-Geusen did not deny that payments were made in return for arms deal contracts and said the company would co-operate with South African authorities investigating the claim.

The German Submarine Consortium, which included Ferrostaal, supplied three Class 209 diesel electric submarines to the SA Navy at a cost of R5.35-billion as part of the 1999 Strategic Defence Package.

Godi said the latest revelation was startling, given the fact that the Hawks had closed the German arm of the investigation, citing a lack of evidence.

"These revelations do indicate that unless this matter is thoroughly investigated, we will continue to have information coming to the public that shows us that maybe our anti-corruption agencies have not been doing their work."

Last week, the Hawks took the first step towards reopening the arms deal probe when Dramat wrote to Godi to inform him that his unit would follow up an admission by Swedish defence group Saab that its former British partner, BAE Systems, paid R24-million in bribes to secure a contract for 26 JAS Gripen fighter jets.

Businessman Fana Hlongwane, a former adviser to late defence minister Joe Modise, allegedly received handsome "commissions" from BAE.

In 2008, the Sunday Times reported that Ferrostaal had allegedly given former president Thabo Mbeki R30-million in bribes. Mbeki was alleged to have given R2-million to Jacob Zuma and the ANC.