The Democratic Alliance (DA) believes it is imperative that we get to the bottom of what happened and what can be done to salvage a US$ 45 million business opportunity offered by European arms company Agusta Westland for the construction of A109M light utility helicopters in South Africa.

The proposal made by Augusta Westland reportedly included the South African government cancelling penalty charges of approximately R90 million, which were incurred as a result of the late delivery of thirty A109M helicopters as part of the strategic defence package, in exchange for a guarantee of US$45 million worth of business over five years constructing A109M helicopters in South Africa.

Where is the downside?

The deal would surely have positioned companies such as Denel Saab Aerosructures (Pty) Ltd, which in the past has manufactured components and assembled A109M helicopters, to become part of the global supply chain for Augusta Westland?

The deal would surely be good for the economy, good for the aerospace industry and save hundreds of high tech jobs in South Africa.

We cannot have a situation where coordination failures, indecision and foot dragging in government put industry and jobs at risk as appears to be the case in the bungled US$45 million deal offered by Augusta Westland.

The DA will be probing this issue at tomorrow's Standing Committee on Public Accounts meeting by asking Talib Sadik, Chief Executive Officer of the Denel Group (Pty) Ltd, to explain:

·         what role the Department of Public Enterprises, Department of Defence, Armscor and Denel played in evaluating the proposed deal; and

·         most importantly what is being done to salvage the proposed deal with Augusta Westland.

Statement issued by David Maynier, MP, Democratic Alliance shadow minister of defence and military veterans, February 2 2010

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