Another bomb drops on the dodgy arms deal
The DA has released documents purporting to show that Fana Hlongwane, adviser to late defence minister Joe Modise, was paid more than R150-million for work related to the arms deal after he had left the government's employ.
Last week Swedish arms manufacturer Saab revealed that it had, through British Aerospace Systems (BAE), paid a South African "consultant" R24-million to buy preferential treatment in South Africa's R48-billion arms procurement programme.
But documents released by DA MP David Maynier yesterday list payments apparently made to Hlongwane that indicate that he might have benefited from the arms deal to the tune of R150-million.
One set of documents bears the initials "FH" on each page. The last page of the set carries the signature "F Hlongwane".
Most of the payments were made through a third company, SA National Industrial Participation (Sanip), and the consultant who benefited is widely believed to have been Hlongwane, Modise's adviser between 1995 and 1998.
At a press conference yesterday, Maynier handed out photocopies of documents in which payments were listed that were purportedly made to two companies in which Hlongwane was the sole shareholder.
The first document was a five-year "consultancy agreement" between Sanip and Hlongwane's company, Hlongwane Consulting, signed in September 2003.
The document seems to show that Hlongwane stood to make about R62-million from Sanip. This amount includes an initial payment of R8.1-million, which would have been made around August 2003, a fee of R1.8-million payable quarterly from September 2003, a bonus of R22.5-million on completion of "milestone one" of the project, and another bonus of R30-million on completion of "milestone two".
All the payments were premised "on the basis that the government does not terminate the tranche 3 of the Hawk-Gripen agreement".
The Hawk-Gripen agreement was for the purchase by South Africa of 26 Gripen fighter jets and 24 Hawk trainers, at an estimated cost of R15-billion, from Saab and BAE. The deal was divided into three parts. The government had the option of cancelling the second and third at any time.
The milestones refer to the investments that the weapons dealers were obliged to make in South Africa in "offsets" to the arms deal. Sanip was set up to manage the arms-deal offsets, which were trumpeted as requiring Saab and BAE to invest millions in South Africa.
The second document was a list of payments totalling R51.3-million purportedly made to Hlongwane Consulting by Sanip between 2003 and 2005.
The third document was an amendment to a 2005 agreement between Hlongwane Consulting and BAE, revealing that Hlongwane stood to make £1-million (about R11-million) for identifying "specific decision-makers" in the South African government and to set up meetings between "the company" [BAE] and "the customer" [the government].
The fourth document is an amendment related to a 2003 agreement between Hlongwane Consulting and British Aerospace Systems, promising an extra $8-million (about R54-million) to Hlongwane Consulting for "additional work done" on "tranche 3" of the Gripen contract.
Maynier said he could not reveal who had given him the documents.
"The documents amount to prima facie evidence of bribery and corruption," said Maynier, pointing out that BAE had to pay a $79-million (R550-million) settlement to the US State Department last month for an alleged 2591 violations of US laws.
The veteran anti-arms deal campaigner Terry Crawford-Browne said he had received the same documents over the past 13 months from sources in Sweden.
Crawford-Browne has amassed boxes of arms deal-related evidence for his Constitutional Court case against President Jacob Zuma.
He is asking the court to compel Zuma to open a judicial commission of inquiry into the arms deal.
Maynier called for the Hawks and the National Prosecuting Authority to re-open their investigations of the arms deal. But Crawford-Browne disagreed.
"The Hawks and the NPA have demonstrated utterly no political will to investigate or prosecute," said Crawford-Browne. "There must be a judicial commission of inquiry with five retired judges empowered to cancel the contracts and recover the monies."
- The Hawks raided Hlongwane's palatial Johannesburg home in 2008, but the Sunday Times reported last year that national prosecutions chief Menzi Simelane told the Asset Forfeiture Unit to drop the case.

Join the discussion & Debate
Another bomb drops on the dodgy arms deal
For Commenters Consideration | Please stick to the subject matterCOMMENTS [39]
AlecC
Posted 337 days agomuk1
Posted 337 days agodeebee
Posted 337 days agoPolyTix
Posted 337 days agoSiinudeity
Posted 337 days agoBut in this case, their own elite cadres, sold them out, for money, to European armsdealers.
Where Biko lives?
I would really like his comment on the matter.
pws80
Posted 337 days agoTEN BILLION RAND.
Italian jets which the airforce wanted: R12 Billion
Inferior jets from BAE: R22 BIllion
So, BAE get an additional R8 billion profit by paying a R2 billion bribe.
Yet the ANC open toilets remain unenclosed in Viljoenskroon AFTER Malema partially enclosed one to much great fanfare from ANC sycophants.
donorfatigued
It is no less than a staggering R 280 BILLION! If my maths are correct, that amounts to R 5600 for each of our (approx) 50 million population!
This is pillage on a grand scale! - and we have only the ANC to thank for this impoverishment of every South African.
pws80
Posted 337 days agoPatrickMhlaba
Posted 337 days agoPolyTix
pws80
Posted 337 days agoGood doggy, well done. Now sit in the corner until we need another cover up.
regards,
JZ
So much for the commitment to fight corruption, and to take an intolerant stance against corruption, hey JZ?
Liar, liar, pants on fire.
buddi
PolyTix
Posted 337 days agoDr.Zeek
Posted 337 days agoI hope dear Pres Mandela doesn't live long enough to have his reputation sullied by the filth from the Arms Deal washing up at his Houghton doorstep. Yes, that is where the trail must eventually lead us, and to Pres Mbeki's palatial doorstep, too. Pres Zuma may have his faults, but he didn't preside over the largest theft from State coffers in SA's history...
However, watch this space, all the recipients of these "payments" will be dead - how very convenient for the ANC.
The masses will continue voting ANC, despite the above.
v_3
Posted 337 days agoIf the information was available to the DA, which has no official powers, why has Adv Willie "Cover-up" Hofmeyr's Asset Forfeiture Unit not been after these "protected because connected" ANC cronies?
Why, too, has SARS turned a blind eye to this.
Both these ANC-controlled state organs have preferred to go after relatively smaller fry, costing the country millions or rands which could have been used to uplift the poor, close the wealth gap or for service delivery.
Once again, it is the poorest of the poor who get cheated by the ANC's corruption.
buddi
Posted 337 days agoThank goodness for the media, the DA and a few good people who still fight the fight.
Vérité
Posted 337 days agoBIRDS OF A FEATHER FLOCK TOGETHER
HottyTotty
Posted 337 days agostonearch
What you are actually saying is that you are BEGGING the DA not to expose your idols for what they are. For they WILL be exposed. I think it is probably time to give the job to Afriforum... After all, they have a 100% track record so far. Lol!
Vérité
HottyTotty
Vérité
AdiosSouthAfrica
previouslycrackerr
According to your thinking the current politicians will have to really pull finger to deliver to keep the stealing politicians out of trouble. Very unfair to place such a burden on them. They should be delivering for the people's sake and not for the sake of the dishonest politicians.
Another of your attempts to use race to divert attention.
HottyTotty
What do u wana gain from this cos its just rubbish that get digged and do what with it, nothing, nothing is Gud abt ANC in the eyes of u guys, so why bother again, the fact is we rule and the money has been spent, so live with it or immigrate
3sTRIPES
I would surely not leave my Africa...my blood is in the soil, how bout yours?
stonearch
-------------------------------------
immigrate?
moron LMFAO!
k'jallawaya
Baas_Frik
disillusionedstill
Posted 337 days agoOn the DA version, surely it 'cannot lose'.
Bart365
Posted 337 days agoSouth African Govt are SAFE GUARDING the NAME MANDELA, as they feel the World will frown on SA if " SAINT' MANDELA's" name is connected to the THIEVERY they call the ARMS DEAL!!!
MisterWendal
Posted 337 days agopokingnose
Posted 337 days agoBobbyBob
Posted 337 days agoThapso
Posted 337 days agoDesert.Foxx
Posted 337 days agoThere must be a paper trail. Why is this not persued? Where is this Fana Hlongwane?
This type of corruption, greed and plain theft NEVER existed during the NP term of government.
Mediagab
Posted 336 days agoGeist
Posted 336 days agoThe Top-Dog, Zuma, is directly involved.
So forget it.
He has 783 criminal charges against him and NOTHING happens.
The Judicial System in this country is a farce.
RIP South Africa.