DTI reveals Arms Deal offset rip off
The Democratic Alliance (DA) believes that the Minister of Trade and Industry, Rob Davies, should receive full credit for agreeing to carry out comprehensive review of the all arms deal offsets implemented under the National Industrial Participation Programme.
This morning the Department of Trade and Industry (DTI), finally provided Parliament with a detailed report on arms deal offsets under the National Industrial Participation Programme. This brings to end a more than decade long struggle to access information on arms deal offsets.
The arms deal was supposed to generate roughly R110 billion in investments and 65 000 jobs.
However, the figures revealed today show that the arms deal actually generated roughly R6 billion in actual investment and 13 690 new jobs.
The report is further evidence that the arms deal offset programme was a monstrous political fraud.
The department provided detailed information on the performance of each consortium or company summarized as follows:
|
Name of Consortium |
Actual Obligation |
Actual Investment |
New Jobs Created |
|
BAE/Saab (Gripen/Hawk Fighter Aircraft) |
US$ 7 200 000 000 |
US$ 398 910 686 |
7 474 |
|
German Frigate Consortium (Meko A200 Frigates) |
US$ 2 047 600 000 |
US$ 44 433 395 |
780 |
|
German Submarine Consortium (Class 209 Submarines) |
Euro 2852 460 454 |
Euro 69 795 413 |
2 202 |
|
Thales (Combat Suite) |
US$ 652 408 990 |
US$ 139 656 198 |
1625 |
|
Agusta (Light Utility Helicopter) |
US $767 930 000 |
US$ 70 932 466 |
884 |
|
Agusta/Westland (Maritime Helicopter) |
GBP108 644 495 |
GBP 18 748 560 |
725 |
The gaping hole between what was promised and what was delivered is explained by the complex system of "multipliers" to calculate the final arms deal offset credits of each consortium or company.
The DTI concede that mistakes were made and that lessons must be learned.
The DA therefore welcomes the announcement that the DTI will conduct a comprehensive review of the arms deal offsets under the National Industrial Participation Programme.
Statement issued by David Maynier MP, DA Shadow Minister of Defence & Military Veterans, April 17 2012
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