Publication: Independent Online Issued: Date: 2001-07-02 Reporter: Editor:

VIP Car List makes for Curious Reading


Publication  Independent Online
Date 2001-07-02
Web Link www.iol.co.za

 

There are no first names mentioned, but the list of cars supplied to VIPs by the European Aeronautic Defence and Space Company (EADS) makes for interesting reading.

 

The figures show the discounts obtained by the VIPs through EADS. So far names refer to one politician, the chief of the defence force and two senior government negotiators, and the wife of a former Zairean prime minister, as well as individuals thought to be top business people.

 

Among them are names which have come up since PAC MP Patricia de Lille made startling allegations and the Sunday Times first reported that Tony Yengeni had obtained his 4x4 through EADS in October 1998 and had started paying for it only several months later.

 

His wife also received a Mercedes-Benz through EADS. Her C180 was bought by the company from Daimler-Chrysler South Africa for R174 825 and sold to her for R185 000, a 5 percent discount off the retail price of R194 250. On this transaction, EADS made a profit of nearly 6 percent.

 

SANDF chief General Siphiwe Nyanda's two Mercs were discounted by 17 percent and 15 percent.

Two officials received discounts on their Mercedes-Benz while they were apparently negotiating the multibillion-rand arms deal on behalf of the government.

 

Former Armscor chief executive Llew Swan and the department of trade and industry's director of industrial participation, Vanan Pillay, got discounts of 30 percent (on an ML320) and 29 percent (on a Mercedes-Benz 250TD) respectively.

 

The swanky red SLK320 that Wivine Ndlandu Kavidi, the wife of former Zairean prime minister N'Guza Karl-I-Bond, drives around Cape Town was acquired at a discount of 6,33 percent. Kavidi is said to have close ties with Yengeni.

 

Some of the most curious entries on the list are those that state simply the surname Woerfel. Michael Woerfel is managing director of EADS.

 

The records reflect that he procured four cars and sold two of them for less than he paid, but the record does not say to whom.

 

The multi-billion rand arms deal, the total cost of which fluctuates along with exchange rates, is the subject of an investigation by three agencies. The offices of Auditor-General Shauket Fakie, National Director of Public Prosecutions Bulelani Ngcuka and Public Protector Selby Baqwa are all probing allegations of corruption relating to the deal.

 

So far there have been allegations that subcontracts awarded in the deal are suspect as these companies have links with people in the government, and more directly links to officials actively involved in the procurement process.

 

Under the 1999 deal, South Africa has placed orders for German submarines, Italian helicopters and aircraft from Britain and Sweden, plus four corvettes for the navy.

 

Earlier this year, the government said no concrete facts had been presented to suggest there had been any corruption in the arms procurement programme by any of its structures.

 

At the same time, the government hit out at parliament's standing committee on public accounts and the auditor-general. Each had made calls for a thorough probe of the arms deal, and were accused of having "some lack of understanding of the procurement process as a whole".

 

At the time, the government said: "The government rejects with contempt any insinuation of corrupt practice on its part."

 

The probe continues, with public hearings as one of its features. 

With acknowledgement to Independent Online.