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Media Statement on the Strategic Defence Procurement Package: Ministers of Defence, Trade and Industry, Finance and Public Enterprises, 12 January 2001
Over the past few months, there has been speculation around the integrity of the Strategic Defence Procurement Package approved by the South African government in December 1999. Such speculation has revolved around the questions raised by the Auditor-General (AG) and the Parliamentary Standing Committee on Public Accounts (SCOPA).
As you are aware, Cabinet had offered that the Ministers of Defence, Trade and Industry, Finance and Public Enterprises would avail themselves to SCOPA to deal with these concerns. Pending the arrangement of this meeting, government deems it necessary to clarify the substance of the issues, given that public discussion on these matters continues. However, the offer still stands.
The attached document, "Background Information on the Strategic Defence Procurement" clarifies the questions raised by both the AG and SCOPA. These relate, among others, to the choices made with regard to the equipment, the financial implications, the National Industrial Participation Programme and elements of the sub-contracting arrangements.
By raising the issues in this manner, government wishes to set the record straight, and clarify questions that, in our assessment, reflect a misunderstanding of both the process and the substance of the Defence Procurement. It is the firm view of Cabinet that this process was undertaken with the utmost integrity.
Government does recognise that the AG and SCOPA have come to the determination that further investigations are necessary. We respect this opinion; and relevant departments and Ministers will fully co-operate with such investigations. To the extent that there may be suspicions, government is as eager as anyone else that the matter should be thoroughly probed.
The Minister of Justice is handling the issue of the involvement of the existing Special Investigating Unit in this investigation. We are made to understand that the Minister will make his recommendation to the President next Monday, upon which a relevant public announcement will made.
12 January 2001
Issued by: Government Communications (GCIS)
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