DA calls on Hawks to investigate alleged R300 million arms deal bribe by Ferrostaal

The Democratic Alliance (DA) believes that General Anwa Dramat, Head of the Directorate of Priority Crimes (the Hawks), should launch an investigation into the allegation that approximately R300 million was paid in "questionable payments" to secure a contract to supply submarines to South Africa.

The German Submarine Consortium, which included Ferrostaal, supplied three Class 209 diesel electric submarines to the South African Navy, at a cost of R5.35 billion, as part of the 1999 Strategic Defence Package.

The company has consistently denied allegations that it was involved in corruption in South Africa.

However, an internal audit report, prepared by law firm Debevoise and Plimpton, which was commissioned to conduct an internal audit to assist with the "clean up" of Ferrostaal, reportedly reveals that approximately R300 million was paid in "questionable payments" to secure the contract to supply submarines to South Africa.

The Hawks, who are already conducting a preliminary investigation into the finding that BAE Systems effectively laundered R24 million though a company called Sanip (Pty) Ltd, to a "South African consultant", who is reportedly Fana Hlongwane, should extend their preliminary investigation into the new information now emerging in Germany.

The DA will therefore be writing to General Anwa Dramat, Head of the Hawks, to request that he open a preliminary investigation into the allegation that R300 million was paid in bribes by Ferrostaal to secure the contract to supply submarines to South Africa.

Statement issued by David Maynier MP, DA Shadow Minister of Defence and Military Veterans, August 5 2011

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