Please enter your login details

You can also sign in with your Sowetan LIVE &
Business LIVE account details.
   Sign Up   Forgot password?

Sign in with:

 
Sat May 26 20:41:57 SAST 2012

Another bomb drops on the dodgy arms deal

Anna Majavu | 23 June, 2011 23:4139 Comments

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.
To submit comments you must first

Join the discussion & Debate

Another bomb drops on the dodgy arms deal

For Commenters Consideration | Please stick to the subject matter

COMMENTS [39]

AlecC

Posted 337 days ago
Avatar
Those with the evidence and who are able to, have to expose this rot. Prosecutions must ensue and guilty individuals have to be prosecuted. Assets should be seized and the citizens should be reimbursed. Come on and apply our laws!

muk1

Posted 337 days ago
Avatar
Don't hold your breath to have the hawks look into this. The ANC has received the lion's share of the booty and individuals also received some of the loot for them to keep quite. JZ I'm afraid is deep in this; and he has his fingers in the pie with regards to the police HQ debacle.

deebee

Posted 337 days ago
Avatar
Filthy scum.

PolyTix

Posted 337 days ago
Avatar
It is unbelievable to what lenghts people will go to enrich themselves and that to the detrement of others. More so when we were made to believe the so called "freedom fighters" were men and women of honour and diginty. Well, well well

Siinudeity

Posted 337 days ago
Avatar
The irony is, we regulary get fools talking about being exploited to whites or the west...

But 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 ago
Avatar
BAE in the UK admitted to paying Fana Hlongwane $280 million. The REAL cost to the South African taxpayer?

TEN 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.
Avatar

donorfatigued

Posted 337 days ago
Terry Crawford-Browne of Economists Allied for Arms Reductions has calculated and published the real cost over the total contract period of 18 years, of the arms deal. This calculation includes the costs of spares and support contracts, interest payments etc. Since Crawford-Browne was a bank manager, I guess he can do his sums!

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 ago
Avatar
But I suppose Maynier will still be accused of being racist and anti revolutionary.

PatrickMhlaba

Posted 337 days ago
Avatar
Do we need all these arms as a country? Are we under threat from any country, no. We are a threat to ourselves.
Avatar

PolyTix

Posted 337 days ago
Zimbabwe!!!!!

pws80

Posted 337 days ago
Avatar
"Menzi Simelane told the Asset Forfeiture Unit to drop the case."

Good 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.

Avatar

buddi

Posted 337 days ago
Only a few minnows are charged with corruption - the big cheeses are unfortunately all escaping.

PolyTix

Posted 337 days ago
Avatar
Hani, Modise, Mbeki and the arms deal??

Dr.Zeek

Posted 337 days ago
Avatar
Vote ANC and This. Is. What. You. Get.

I 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 ago
Avatar
None of this is new and has been reported by the mainstream media for years.
If 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 ago
Avatar
And isn't it amazing how quiet our government is about the whole thing? Maybe they think that it will go away (again) if they don't say anything.
Thank goodness for the media, the DA and a few good people who still fight the fight.

Vérité

Posted 337 days ago
Avatar
Like I mentioned in my comment on the Libya article:

BIRDS OF A FEATHER FLOCK TOGETHER

HottyTotty

Posted 337 days ago
Avatar
u r losing ur mind i guess, DA is obsessed and they will keep on singing the very same song whereas ANC is governing and delivering sevrvices to those who wants it, what r u gona gain by trying to expose the ruling party, u will gain nothing im telling u, u r just so gullible and hungry and obsessed by the fact that a Black org is ruling and the fact that the country was taken from whites in a peaceful delocratic electin unlike when u came here with ur Dramadaris and hoedekop to steal the land by giving us mirrors and make fool off our grandmothers and fathers, let DA rot in hell for all i care
Avatar

stonearch

Posted 337 days ago
He he he he
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!
Avatar

Vérité

Posted 337 days ago
I suggest you concentrate your thoughts to article related comments. This has nothing to do with service delivery if you want to discuss service delivery, Times have articles about Primary Health Care in Shambles and the Toilette saga, maybe you should focus your strength and energy on those forums, as this is a matter of international war crimes and not about toilettes and poor heath care, which I assume you like.
Avatar

HottyTotty

Posted 337 days ago
ANC has never been Gud in the eyes of the DA, so why bother
Avatar

Vérité

Posted 337 days ago
LOL They will never be. That is called OPPOSITION!!!FCOL
Avatar

AdiosSouthAfrica

Posted 337 days ago
Well if you read carefully to your comment you are living proof the the ANC has failed miserably at education service delivery.I like that ANC flag flying next to your comment, it mirrors the organisations descent into filth, ignorance and totsiedom
Avatar

previouslycrackerr

Posted 337 days ago
@ Hotty Totty

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.
Avatar

HottyTotty

Posted 337 days ago
VERETE or whoever
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
Avatar

3sTRIPES

Posted 337 days ago
Or we could stay and slowly but surely make sure dim witted folk like you have less and less influence in society...

I would surely not leave my Africa...my blood is in the soil, how bout yours?
Avatar

stonearch

Posted 337 days ago
"so live with it or immigrate"
-------------------------------------
immigrate?

moron LMFAO!
Avatar

k'jallawaya

Posted 337 days ago
...hottyPotty.....why u r sayin' we shudn't worry 'bout fraud in ddis contract???
Avatar

Baas_Frik

Posted 335 days ago
Nobody is obsessed with anything. Your ANC government are corrupt. This is wrong and deprive the poor of a better future. You obviously do not care. What does that make you?

disillusionedstill

Posted 337 days ago
Avatar
Maybe nerves should not get touched here, but after the hordes of corruption, rape, et al allegations made by the DA, IF the DA is so sure of its evidence, 'put your money closer to your mouth' and take civil action.

On the DA version, surely it 'cannot lose'.


Bart365

Posted 337 days ago
Avatar
The only reason the Arms Deal(sic), more like THEFT, will NOT be reopened is because the names of MANDELA and SISULU ARE ON TOP OF THE LIST as RECEIVERS of the said BRIBERY!

South 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 ago
Avatar
I'll bet that most of the unjust enrichment ended up in the coffers of the ANC. The intermediate cadres involved are mere channels willingly used for redirecting funds to the ANC (although these persons no doubt benefitted financially as well).

pokingnose

Posted 337 days ago
Avatar
yes but we have an unenclosed toilet in cape town, lets get the priority right here...

BobbyBob

Posted 337 days ago
Avatar
Now I know why it took Wallmart that long to come in here. Their corporate governance is too good. No payoffs!

Thapso

Posted 337 days ago
Avatar
Ya......ne it was okay back in the days when this guys where suffering due to treatment they got from the Police and the government calling them you know what and stuff confusing so called Colored that they are a bit white, getting a better treatment than so called blacks.!! First they had the opportunity to make money and they did why coz when they where fight for your asses to get freedom they didn't have enough time to make a lots of money that the whites possess now, when the so called blacks being in power it's a problem to make money for the peps who had no opportunities please leave them alone if they die let them die in peace. the word colored means Black it's just we are in S.A when black turns against black colored(an offensive term meaning belonging to an ethnic group whose members are predominantly dark-skinned ).

Desert.Foxx

Posted 337 days ago
Avatar
It fills one with anger and sadness when you realise how far the fraudulant billions could have gone in easing the plight of the ordinary man.

There 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 ago
Avatar
quite simple actually, the international community should impose sanctions on this country until it actually open a proper inquest into the arms deal and transparently does so! Put travel sanctions on the individuals that are implicated so that they cannot move around the world and put trade sanctions on the country to create complete public outcry! maybe then the president will do what is right and actually become a leader... at this stage he is covering up for his friends that should be jailed for decades!

Geist

Posted 336 days ago
Avatar
NOTHING will happen.
The 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.