South African Arms Deal
Encyclopedia
The South African Arms Deal was a US$4.8 billion (R30 billion in 1999 rands) purchase of weaponry by the South African Government
African National Congress
The African National Congress is South Africa's governing Africanist political party, supported by its tripartite alliance with the Congress of South African Trade Unions and the South African Communist Party , since the establishment of non-racial democracy in April 1994. It defines itself as a...

 finalised in 1999 which has been subject to allegations of corruption.

The South African Department of Defence's Strategic Defence Acquisition was to modernise its defence equipment, which included the purchase of corvette
Corvette
A corvette is a small, maneuverable, lightly armed warship, originally smaller than a frigate and larger than a coastal patrol craft or fast attack craft , although many recent designs resemble frigates in size and role...

s, submarine
Submarine
A submarine is a watercraft capable of independent operation below the surface of the water. It differs from a submersible, which has more limited underwater capability...

s, light utility helicopter
Helicopter
A helicopter is a type of rotorcraft in which lift and thrust are supplied by one or more engine-driven rotors. This allows the helicopter to take off and land vertically, to hover, and to fly forwards, backwards, and laterally...

s, lead-in fighter trainers and advanced light fighter aircraft.

Requirements

Description Original Qty Illustrative total cost
Corvette
Corvette
A corvette is a small, maneuverable, lightly armed warship, originally smaller than a frigate and larger than a coastal patrol craft or fast attack craft , although many recent designs resemble frigates in size and role...

s
4 R4 billion
Maritime helicopter for corvettes 5 R1 billion
New submarines to replace Daphne
Daphne class submarine
The Daphné class was a type of diesel-electric patrol submarines built in France between 1958 and 1970 for the French Navy and for export.-History:...

 
4 R5,5 billion
Alouette
Aérospatiale Alouette III
The Aérospatiale Alouette III is a single-engine, light utility helicopter developed by Sud Aviation. It was manufactured by Aérospatiale of France, and under licence by Hindustan Aeronautics Limited in India as Hal Chetak and Industria Aeronautică Română in Romania.The Alouette III is the...

 helicopter replacement
60 R2 billion
Advanced light fighter 48 R6-9 billion
MBT
Main battle tank
A main battle tank , also known as a battle tank or universal tank, is a tank that fills the heavy direct fire role of many modern armies. They were originally conceived to replace the light, medium, heavy and super-heavy tanks. Development was spurred onwards in the Cold War with the development...

 replacement of Olifant
154 R6 billion
Total cost in 1998 Rand R25-38 billion

Final shortlist

Item / Country Original Request Possible Reduced
Corvette Requirement 4 4
Britain GEC F3000
Germany GFC Meko 200/Meko A200
Valour class frigate
The South African Valour class frigates are the major surface ships of the South African Navy. Their German manufacturer designates these warships as the MEKO A-200SAN class, member of its MEKO family of naval ships...

France La Fayette
La Fayette class frigate
The La Fayette class units are light multi-mission frigates built by DCN and operated by French Marine Nationale...

Spain Bazan 59B
Álvaro de Bazán class frigate
The Álvaro de Bazán class are a new class of Aegis combat system-equipped air defense frigates entering service with the Spanish Navy...

Maritime Helicopter for Corvettes 6 4
France/Germany Eurocopter AS 532
Britain GKN Super Lynx
Westland Lynx
The Westland Lynx is a British multi-purpose military helicopter designed and built by Westland Helicopters at its factory in Yeovil. Originally intended as a utility craft for both civil and naval usage, military interest led to the development of both battlefield and naval variants...

Submarine Requirement 4 3
Britain second-hand Upholders
Germany GSC TR1400
France DCN Scorpene
Italy S 1600
Sweden Kockums T192
Advanced Light Fighter Aircraft Requirement 48 38
Britain/Sweden BAE/SAAB JAS 39 Gripen
JAS 39 Gripen
The Saab JAS 39 Gripen is a lightweight single-engine multirole fighter manufactured by the Swedish aerospace company Saab. It was designed to replace the Saab 35 Draken and 37 Viggen in the Swedish Air Force...

Light Utility Helicopter Requirement 60 48
Italy Agusta A109
France/Germany Eurocopter EC 635
Canada Bell 427
Bell 427
|-See also:-References:* . Bell Helicopter-External links:*...

Main Battle Tank Requirement 154 108
France Leclerc
Leclerc
The AMX-56 Leclerc, commonly known as the Leclerc, is a main battle tank built by Nexter of France. It was named in honour of General Philippe Leclerc de Hauteclocque who led the French element of the drive towards Paris while in command of the Free French 2nd Armoured Division in World War...

Britain Challenger 2


The South African government announced in November 1998 that it intended to purchase 28 BAE
British Aerospace
British Aerospace plc was a UK aircraft, munitions and defence-systems manufacturer. Its head office was in the Warwick House in the Farnborough Aerospace Centre in Farnborough, Hampshire...

/SAAB
Saab
Saab AB is a Swedish aerospace and defence company, founded in 1937. From 1947 to 1990 it was the parent company of automobile manufacturer Saab Automobile, and between 1968 and 1995 the company was in a merger with commercial vehicle manufacturer Scania, known as Saab-Scania.-History:"Svenska...

 JAS 39 Gripen
JAS 39 Gripen
The Saab JAS 39 Gripen is a lightweight single-engine multirole fighter manufactured by the Swedish aerospace company Saab. It was designed to replace the Saab 35 Draken and 37 Viggen in the Swedish Air Force...

 fighter aircraft from Sweden
Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....

 at a cost of R10.875 billion, ie R388 million (about US$65 million) per plane.

Review

In a January 2001 report, the Attorney-General of the Western Cape and the SIU's own senior legal advisor recommended further investigation:
A joint investigative team looked at the arms deal in 2000. This team, consisting of the auditor general, the public defender and the national director of public prosecution, found in a November 2001 report there were no grounds to believe that government had acted "illegally or improperly".

But in October 2009 documents provided by Cape Town businessman Richard Young, whose company, CCII Systems, lost the tender for the navy's new corvettes, showed their initial report had been doctored, stating that there was no proof of government "irregularities, fraud or corruption".

Bribery allegations

British and German investigators suspect that bribes of over one billion rand were paid to facilitate the deal. Jacob Zuma
Jacob Zuma
Jacob Gedleyihlekisa Zuma is the President of South Africa, elected by parliament following his party's victory in the 2009 general election....

, Thabo Mbeki
Thabo Mbeki
Thabo Mvuyelwa Mbeki is a South African politician who served two terms as the second post-apartheid President of South Africa from 14 June 1999 to 24 September 2008. He is also the brother of Moeletsi Mbeki...

, Schabir Shaik
Schabir Shaik
Schabir Shaik is a South African businessman from the Berea, Durban, who rose to prominence due to his close association with South African President Jacob Zuma during his time as Deputy President...

 and his brother Chippy Shaik and the late Joe Modise have all been mentioned. Andrew Feinstein
Andrew Feinstein
Andrew Josef Feinstein is a former South African politician who currently resides in the United Kingdom, but remains a South African citizen.-Personal life:He was born in Cape Town to Ralph Josef Feinstein and Erika Hemmer...

, an ANC Member of Parliament and the former African National Congress leader of Parliament's public accounts watchdog Scopa, resigned when the party moved to curtail investigations into the arms deal. He wrote a book called After the Party with an insider's view of the process.

Whistleblower Patricia de Lille
Patricia de Lille
Patricia de Lille is a South African politician and Mayor of Cape Town. She is also, concurrently, the leader of the Independent Democrats, a South African political party which she formed in 2003 during a floor-crossing window...

 alleged in Parliament that she had evidence of three payments by warship supplier Thyssen-Krupp on January 29, 1999, each of R500,000, to the ANC, to the Nelson Mandela Children's Fund
Nelson Mandela Children's Fund
The Nelson Mandela Children's Fund is a charitable organization founded by Nelson Mandela, based in South Africa. Its mission is to help individuals from birth to age 22, particularly orphans of the AIDS crisis.-History:...

 and to the Community Development Foundation, a Mozambique charity associated with Mandela's wife, Graça Machel
Graça Machel
Graça Machel, DBE is a Mozambican politician and humanitarian. She is the third wife of former South African president Nelson Mandela and the widow of Mozambican president Samora Machel...

.

External links

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