Probe told of R5.4bn trade deals

DEALS involving counter-trade between Armscor and foreign suppliers outside of the 1999 arms contracts amounted to R5.4-billion between 1988 and 2000, an inquiry was told yesterday.

Johannes de Beer, Armscor's manager of defence industrial participation agreements, was testifying before the Arms Procurement Commission.

He said one example was the local production of the Impala light fighter aircraft at Atlas, later known as Denel Aviation.

The aircraft was based on the Italian MB326 Mk I and Mk II aircraft and was used by the SA Air Force from 1966 until 2005 as a light fighter aircraft.

De Beer said in Pretoria that by February 2000, 12 out of the 18 counter-trade agreements had been completed and a total of R4.7-billion had been passed on to the domestic defence industry.

The commission, chaired by Judge Willie Seriti, is investigating allegations of fraud, corruption and irregularities in the acquisition of arms for the SA National Defence Force.

De Beer said the deals sought to counter some currency outflow.

The commission continues. - Ernest Mabuza